inst/strategy_description/weighted_value_for_money_index.md

In lajh87/tessa: Tender Evaluation Strategy Scenario Analysis

This method allows you to introduce a weighting on the non-cost criteria. It lets bidders know whether your aim is to maximise the non-cost score or to drive down the cost. This will help them to decide whether to add additional capability elements or adjust their commercial position to improve their non-cost score - which will both also increase the cost.

It requires an assumption to be made about the relative weight to apply to cost and the non-cost criteria. You will need to carefully test the implications of different weightings using dummy results. Small changes to weightings of just a couple of percent will have a large effect on the final result when using this formula. High weightings (generally over 70%) should be avoided - in a scenario where your preference is this strong it would be simpler to use lowest price or highest technical instead. Your sensitivity analysis should show you why this is the case. Selecting a weighting this high will almost always result in either the highest scoring or lowest priced bid winning, depending on which received the high weighting.

The overall tender score is calculated as follows:

$$ \frac{{Non\mbox{-}Cost Score}^{\frac{wQ}{wC}}}{Cost (£)}$$

Where: wQ = weighting of non-cost criteria wC = weighting applied to cost

And: wQ + wC = 100

lajh87/tessa documentation built on July 6, 2019, 12:06 a.m.