Many tenders I work on include "best overall value for money" as a key evaluation criterion. It isn't just about price — it's about how well you can deliver the products or services required, what value-adds or innovations you bring, and how well you meet the tender requirements.
Here are some of the things you need to reinforce in your submission whenever you see this in the evaluation criteria:
1. Technical Requirements and Performance Standards
It's about how well you can meet the technical requirements and performance standards. If you exceed expectations, you'll probably be considered better value, so make sure you talk up your capabilities.
2. Innovations and Creative Solutions
Showcase any innovations or creative solutions that you can bring to the table in your tender submission. It’s a good idea to talk about your continuous improvement approach. If you can demonstrate that your solution will provide cost savings or better outcomes over the long term, you’ll inch ahead of the other submissions.
3. Total Lifecycle Costs
The evaluation panel will definitely consider total lifecycle costs. So, even if your upfront cost may be higher than your competitors - if your ongoing operating, maintenance or operating costs are lower, ensure you demonstrate overall costs over two, three, and five years.
4. Reputation and Experience
Your reputation and experience will also be considered as part of the criteria for value for money. So, the more you can demonstrate your proven ability to deliver contracts of a similar size and complexity, the more appealing your bid will be.
5. Social and Environmental Sustainability
Most tenders these days include social and environmental sustainability in their evaluations. The evaluation panel will likely incline positively towards bidders who have ISO accreditation. So, if you’re not already purchasing from social and sustainable suppliers, it’s time to get on to it.
Final Thoughts
Ultimately, the concept of best value for money is all about optimising the balance between quality, cost, and performance. It ensures the winning business provides the best possible outcome for the tender issuer's needs in the long run.
If you're stuck with how to position your business, I'm always here to help. Just give me a call at 0400 5145 579, shoot me an email at pauline@tenderwise.com.au, or fill out this form.
That's it from me for now! Happy bidding!
Pauline