Quality
Criteria in case of "Best Value For Money"
Purpose
Best Value for Money adjudication
is used when the department considers that it
is worth paying and additional price for the quality
of the service than
adjudicating to the lowest bidder.
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Best Value
for Money contract procedure is
used only for Service Contracts
(under very special
circumstances could also be used
for supply contacts prior
authorisation from Finance
Committee). |
Documents
In case of an
adjudication under Best Value for Money basis, two additional documents
have to be prepared by the Technical Responsible:
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This
information will be transmitted
to the bidders. |
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The
adjudication criteria shall be
determined on a cas-by-case
basis. As a general rule, price
shall account for at least 50%
of the adjudication formula (price
weight). Therefore, the weight
of the quality criteria shall
not exceed 50% of the
adjudication (quality weight). |
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This
information
is
highly confidential and
shall not be disseminated. |
Quality weight
and scoring
The
weighted score will be calculated as follows:
Total weighted score = (weighted quality score) +
(weighted price score)
Where:
Accordingly, the maximum price score is awarded to the lowest
compliant bid.
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It should be noted that the
above formula ensures that: |
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The maximum
amount to be
paid for the
best placed bid
will never
exceed
2*Quality weight (%)
of the price of
the lowest
compliant bid
and for a
quality score of
0 (i.e. for a
50/50
adjudication,
the maximum
price for the
best placed bid
will never
exceed 100% of
the price of the
lowest compliant
bid; in case of
a 80/20
adjudication the
maximum price
paid will never
exceed 40% of
the lowest
compliant bid);
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A price increase
of 10% will be
compensated by
 (%)
of quality
increase
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In order to
score each bid in an objective
and accurate way, a number of
points is attributed to each
answer provided by the bidder.
The amount of points granted
should correspond to the cost of
the resources or feature
proposed by the future
contractor or the value for
CERN. Therefore, it is useful to
calculate the correspondence
between points of quality and
the price CERN is willing to pay
for
it
bearing in mind that the costs
have to be calculated for the
initial contract duration, i.e.
generally three years.
The price for each quality point
corresponds to a value in Swiss
francs that can be calculated as
follows:
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The maximum
score for each criterion shall
be granted to satisfactory
proposals bearing in mind that
the purpose of BVFM
adjudications is to accept to
pay a reasonable price for a
satisfactory quality (not to pay
more to obtain an unreasonably
high quality level).
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As a guideline, each criterion
shall not account for more than
40% of the maximum possible
score for quality (i.e. if the
total number of points
attributed for the quality is
200, a single criterion should
not be scored above 80 points
out of the 200 points).
In case CERN defines eliminatory
criteria or scores, it shall be
clearly stated so in the
invitation to tender documents. |
Procedure
The technical responsible shall
prepare the two memorandum
addressed to the Head of Purchasing
applicable for Best Value for Money
adjudication:
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Templates for
Best Value
for Money memorandum are available in this
site. |
This memorandum shall be
discussed with the
EN Specification Review Panel before distribution to the
Purchasing Service.
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As
questions can be asked by
delegates during Finance
Committee, it is important that
the propose contract
adjudication scheme is reviewed
centrally. |
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At the
department level, it aims to
archive and get experience on
the effectiveness of quality
criteria used for various
contract adjudications. |
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