Procurement Best Practices: Separate Technical and Price Evaluation
Only considering price proposals for qualified proposers with complete proposals is a best practice to ensure that contract requirements are met.
One approach is to evaluate all non-price qualifications first, including approach, financial strength, environmental record, litigation history, responsiveness to prescribed specifications, "extra" service or program commitments, etc. Another option is to have two totally separate evaluation committees review the technical and cost elements, and then only consider proposals which meet minimum qualifications for both.
- Qualified proposals - Ensures that proposals that do not meet threshold technical contract requirements are not considered.
- May discourage new or small companies from competing effectively.