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Value Vs Cheapest

I would love to understand the process of tender evaluation and how evaluators establish BEST VALUE.. I OPTEN hear from  prospects that the CHEAPEST price doesnt give them the solution they need. 

our Lifemasters.co.za - delivers a 5x to 10 value when compared to competitors.. how is this evaluated or compared?


  • The tender evaluation process is probably more complex than what we can explain in this forum but in summary:
    There is a two-step evaluation process.
    1. In the Functional Evaluation the capability of each bidder is measured and scored against a set of pre-defined criteria. All tenders that score more than the minimum threshold set for this evaluation goes through to the second round.
    2. The second evaluation only considers price and preference points (based on the B-BBEE certificate of each bidder.) The price point is calculated in a fixed calculation and a point out of 80 or 90 is determined. The preference points are then added from a simple table based on the B-BBEE level contribution (out of 20 or 10.) The bid with the highest points should be awarded the contract.

    So this evaluation methodology does leave space for the best solution not necessarily being accepted because in the second stage the score on the functional evaluation is not considered at all. So the principle is that the best acceptable bid should be accepted.