In the world of public sector contract procurement, the common belief is that commissioners are solely concerned with securing the best price, particularly in a time of tightening budgets. However, the reality is quite different, with quality consistently taking precedence over price. In this blog, we explore the reasons why quality triumphs in the competitive world of bidding, delving into the key factors of weighting, ratios, legislative influence, and content.
Weighting
At the foundation of any tender evaluation process lies the allocation of weights to different criteria. Typically, the criteria are divided into two categories: ‘Quality’ and ‘Price.’ Quality often carries the majority share of the weight, typically around 60-70% of the overall score, leaving Price with an average of 30-40%. This steadfast distribution highlights the significance of quality in tenders across the public sector.
By assigning greater weight to Quality, commissioners protect against a race to the bottom in terms of pricing. This approach also offers tenderers ample opportunity to demonstrate their value, competency, and commitment to delivering excellence.
Ratios
While Quality and Price are evaluated separately, they are linked, collectively determining the overall score of a bid. The heavier weighting placed on Quality underscores its critical role in influencing the Quality-to-Price ratio, which commissioners use as a basis for scoring. This approach ensures that even if a bidder achieves a perfect score in the pricing component, a poor performance in the Quality section can cost them the contract.
Legislative Influence
Historically, public sector tenders sought the ‘Most Economically Advantageous Tender’ (MEAT), often misconstrued as the lowest cost option. However, new legislative developments are changing this perception. The New UK Procurement Bill, expected to come into effect in 2024, introduces a significant shift by replacing MEAT with the ‘Most Advantageous Tender’ (MAT). While the change in wording may seem minor, it carries substantial implications.
This legislative change grants commissioner’s greater flexibility in defining their evaluation criteria, allowing an increased emphasis on Quality and social considerations. The MAT framework allows commissioners to prioritise factors such as added value, community involvement, and environmental initiatives. As a result, Quality is able to play an even more prominent role in future procurement processes.
Content
The Price section of a bid may demonstrate cost efficiencies, but it doesn’t convey the essence of the bidder. The Quality section offers a platform to showcase the bidder as a provider, establish an identity, highlight unique selling points, and let win themes shine through.
The effectiveness of the Quality section hinges on the quality of the content and writing. Given its typically higher weighting, subpar written performance can significantly hinder a bidder’s chances of securing the contract.
While addressing the pricing component is undoubtedly important, our experience and insights suggest that quality is the linchpin to winning bids in the competitive world of public sector procurement. Quality not only sets you apart but also proves your commitment to delivering excellence and value.
If you’re looking for help in ensuring your bids are of the highest quality, don’t hesitate to reach out to our team today and they will be more than happy to assist you.
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