Award criteria are used to determine which economic operator is best placed to deliver a contract. A contracting authority has discretion to determine what award criteria to apply but questions asked at this stage cannot duplicate questions already asked at the selection stage. This is because at this stage suppliers are being assessed on the merits of tenders themselves rather than their suitability to tender. The criteria should allow objective comparison of tenders, be published in advance (in the contract notice) and not discriminate/favour potential contractors.
Contract requirements: in setting out the award criteria in the specification, it is important to contextualise these by including an overview of the contractual conditions the contracting authority expects to build into the final contract. Taking a relevant and proportionate approach provides the best means to encourage competition. Below are some best practice examples:
A range of examples are available in the Community Benefits in Public Procurement (2008) report.
Approach taken by Glasgow City Council - the East End Regeneration Route (Phase 2) 2009 - Community Benefits Performance Measure - SMEs and Social Enterprises in response to Glasgow’s economic strategy at the time which included the key priority of the creation of a culture of entrepreneurship, clauses for the benefits of SMEs were built into the contract requirements. The contract also included requirements for facilitating the involvement of Social Enterprises in recognition of the added social value these bring.
In its tender documentation, Glasgow City Council set out a number of key performance indicators relating to SMEs and social enterprises, including:
Bidder’s responses to specific questions on delivery of these community benefits counted for 4% of the evaluation.
'Relevant to [CONTRACTING AUTHORITY]'s core purpose of [CORE PURPOSE], [CONTRACTING AUTHORITY] is seeking to maximise social considerations that can be delivered through performance of the services. As against this contract for [SERVICES] [Contracting Authority has included the following KPIs/requirements on the [CONTRACTOR] to (note: following as examples):
'The contract or framework agreement supports the Scottish Government's National Performance Framework, and the National Outcomes which articulate the Government's Purpose to focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. This framework supports the following National Outcomes, and contractors are expected to support the contracting authority’s aim to achieve these.' [Insert relevant National Outcomes - see above].
Below are examples of questions specific to the creation of benefits for SMEs and supported businesses that contracting authorities may wish to include as award criteria:
‘Describe the activities you will undertake to develop, in partnership, an awareness and capacity building programme capable of delivering more SMEs, community and third sector organisations able to trade with your firm in performance of this contract?’
‘What steps will you take to ensure sub-contractors make opportunities available to SMEs?’
‘Describe the deliverables you anticipate realising from your activities under the above questions and steps you will take to meet these and to keep [CONTRACTING AUTHORITY] informed?'
In evaluating community benefit award criteria this must include evaluation of the bidder’s proposed approach to meeting the requirement and ensure they demonstrate an understanding of how to achieve the required community benefit.
The weighting should be determined on a case-by-case basis and set out in the contract documents. Guidance on evaluation of tenders is available in the Procurement Journey.
