Evaluation Criteria
Weighted scoring in a procurement evaluation is a method to assess and compare vendor proposals systematically and objectively. When evaluations involve two levels of criteria — main criteria and their respective sub-criteria — the calculations ensure that both levels are appropriately weighted based on their relative importance. This ensures decisions align with your organisation’s priorities.
Here’s a detailed description of how the calculations are created and structured in Cotiss:
1. Define and Structure Evaluation Criteria
- Main Criteria: These are the high-level areas of evaluation, typically based on organizational priorities such as Cost, Quality, Delivery, or Technical Capability.
- Sub-Criteria: These are the detailed factors under each main criterion. For instance:
- Cost → Upfront Cost, Ongoing Costs.
- Quality → Durability, Reliability.
2. Assign Weights to the Main Criteria
- Determine the relative importance of each main criterion based on organizational priorities.
- Assign weights to each main criterion. For example:
- Cost = 40%
- Quality = 35%
- Delivery Time = 25%
3. Distribute Weights Among Sub-Criteria
- Each main criterion’s weight is further distributed among its sub-criteria based on their relative importance within that criterion.
- For example:
- If Cost = 40% and has two sub-criteria:
- Upfront Cost = 30% of the 40% (0.3 × 0.4 = 12% total weight).
- Ongoing Costs = 10% of the 40% (0.1 × 0.4 = 4% total weight).
- If Cost = 40% and has two sub-criteria:
- The total sub-criteria weights under a main criterion must equal that criterion’s weight.
4. Score Vendors on Sub-Criteria
- Vendors are evaluated for each sub-criterion using a defined scale, such as:
- 1 to 5, where 1 = Poor and 5 = Excellent.
- 1 to 10, for finer granularity.
- Example:
- Vendor A scores 8/10 on Upfront Cost and 7/10 on Ongoing Costs.
5. Calculate Weighted Scores for Each Sub-Criterion
- Multiply the vendor’s score for each sub-criterion by its total weight (main criterion weight × sub-criterion weight).
- Formula:
Example:
For Cost (40%) with two sub-criteria:
- Upfront Cost (12%): Vendor A scores 8/10.
- 0.4 x 0.3 x 8 =0.96
- Ongoing Costs (4%): Vendor A scores 7/10.
- 0.4 x 0.1 x 7 = 0.28
6. Aggregate Scores for Main Criteria
- Sum the weighted scores of all sub-criteria under each main criterion to get the vendor’s total score for that criterion.
- Formula:
Example:
- For Cost: Cost Score = 0.96(Upfront Cost) + 0.28(Ongoing Cost) = 1.24
7. Calculate the Vendor’s Final Weighted Score
- Sum the scores of all main criteria to determine the vendor’s overall performance.
- Formula:
Example:
For Vendor A:
- Cost = 1.24 (0.96 + 0.28)
- Quality = 0.95 (0.63 + 0.32)
- Delivery = 0.48 (0.3 + 0.18)
Criteria |
Weight |
Sub-Criteria |
Weight |
Vendor Score |
Weighted Score |
Cost (40%) |
40% |
Upfront Cost |
30% |
8 |
0.4 × 0.3 × 8 = 0.96 |
Ongoing Costs |
10% |
7 |
0.4 × 0.1 × 7 = 0.28 |
||
Quality (35%) |
35% |
Reliability |
20% | 9 |
0.35 × 0.2 × 9 = 0.63 |
|
|
Durability |
15% | 9 |
0.35 × 0.15 × 6 = 0.32 |
Delivery (25%) |
25% |
Lead Time |
15% | 8 |
0.25 × 0.15 × 8 = 0.3 |
|
|
Flexibility |
10% | 7 |
0.25 × 0.1 × 7 = 0.18 |
Total Weighted Score for Vendor: 0.96 + 0.28 + 0.63 + 0.32 + 0.3 + 0.18 = 2.67