ABSTRACT

The quality/price (Q:P) Tender Evaluation model helps to determine the best weighting between qualitative factors and price, and also to determine whether a ‘minimum’ technical threshold is required. The vertical axis indicates a sliding scale of the Q:P ratio, with more commoditised [price sensitive] contracts favouring a higher price percentage. There is a fourth quadrant on the Q:P Tender Evaluation Matrix suggesting high Q:P ratios with low [negligible] technical thresholds, but this are counter-intuitive and will lead back to one-dimensional competitive tension between quality and price. Public sector purchasers are often left with a conundrum as to the most appropriate balance of award criteria for any given contract. Price is often perceived as ‘absolute’ but there are different methods for evaluating and comparing tender prices. Similarly, ‘quality’ is an evaluative score that always has the risk of subjectivity.