Where possible, the price/commercial evaluation of tenders should be completed by the Procurement Officer.
To enable an easier comparison, you should include a price schedule with a breakdown of the product/service areas for tenderers to complete. The evaluation should endeavour to identify and compare all the costs and benefits' which can be quantified in money terms.
You must consider a 'whole-life costing' approach in order to take account of all aspects of cost from cradle to grave (acquisition, operation, ownership and disposal). Higher value or complex procurements may require the use of investment appraisal techniques (such as discounted cash flow calculations). In all cases the method for price evaluation should be defined within the Invitation to Tender (ITT) documentation.
You may find the Supplier Cost Drivers Checklist useful when developing a pricing schedule.
Price/financial evaluation criteria should include:
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