Selecting the successful bidder

Selecting the successful bidder is the step in a public procurement where the buyer applies the selection method stated in the solicitation to decide which compliant bid or proposal receives the contract. The method can be lowest evaluated price, best overall value, technical merit within a stipulated budget, or another method named in the tender notice.

The expression belongs to public procurement generally and is not a NATO-specific term. It is closely related to bid evaluation, basis of selection, mandatory criteria, point-rated criteria and contract award. Canadian guidance separates evaluation, which assesses bids against the stated criteria, from selection, which chooses the successful bid using the stated method. CanadaBuys explains how bids are evaluated and selected for federal opportunities.

Selection methods used by federal buyers

CanadaBuys identifies three methods used by Public Services and Procurement Canada (PSPC): the lowest-priced bid, the best overall value, and the highest technical bid within a stipulated budget. The method PSPC will use to select the winning bid is stated in the tender notice, so each solicitation tells bidders how the decision will be made.

Treasury Board Secretariat guidance lists four bases of selection that project authorities can choose from:

• Lowest evaluated price, using mandatory requirements only.
• Lowest evaluated price after both mandatory and point-rated evaluation.
• Lowest price per point.
• A combination of technical merit and price.

These options are set out in the Treasury Board Secretariat evaluation criteria guidance. Where lowest price is the stated method, the successful bidder is the compliant bidder with the lowest evaluated price. Where best value applies, the solicitation may use a point-rating system, such as price per point, or another price-and-technical-merit formula.

How evaluation feeds the selection decision

Selection happens only after bids have been evaluated. Suppliers must satisfy the mandatory requirements and, where point-rated criteria apply, achieve the required score. Under the lowest evaluated price method with mandatory and point-rated criteria, only bids that meet the mandatory requirements and the minimum point-rated score are considered for selection.

CanadaBuys states that technical and financial information are assessed separately to support fairness. A bid that fails a mandatory requirement is not carried forward to the selection step, regardless of its price.

The Treasury Board Secretariat describes the broader process in plain terms: the owner reviews and evaluates timely bids and usually chooses one bidder, after which the owner and that bidder sign a contract. See the Treasury Board Secretariat overview of the public purchasing process.

What solicitations must disclose and what reviewers check

Indigenous Services Canada guidance says solicitation instructions should identify the criteria, the mandatory and point-rated requirements, the technical evaluation grid and the selection methodology. Its tendering-policy best practices require instructions to explain the evaluation process, criteria, rating structure and selection methodology used to determine the winning bidder. The guidance is published by Indigenous Services Canada.

Oversight bodies look at the same elements. The Office of the Procurement Ombudsman treats the selection method for determining the successful bid, consistent evaluation, contract award and the documentation supporting the selection of the successful bidder as elements of procurement review. Its review of PSPC procurement practices is one example.

What it means for a supplier bidding on Canadian public contracts

Read the selection method in the specific tender notice before writing the bid. It cannot be inferred from the phrase "successful bidder" alone. Then submit a bid that satisfies every mandatory requirement, addresses each applicable rated criterion, follows the submission instructions, and offers a price or technical solution that is competitive under the stated method.

In a lowest-price procurement, compliance and price decide the outcome. In a best-value or price-per-point procurement, the strength of the rated responses matters as much as the price. Because technical and financial information are assessed separately, each part of the bid must stand on its own.