Introduction To The Quality Price Matrix

INTRODUCTION TO THE QUALITY PRICE MATRIX
The Quality Price Matrix should be used where contracts are awarded on the basis of most econo
By using the Quality Price Matrix, it is possible to identify the best value for money proposal taki
Evaluation of tenders using the Quality Price Matrix must be undertaken strictly in accordance w
invitation to tender. Examples provided below.
The scoring methodology and if applicable the weightings by question should also be published
Establish Tender Award Criteria (this matrix can be used to assist in this process)
The Purchasing Officer should work with the UIG to agree appropriate award criteria, based upon
requirement as identified in the Specification.
The criteria identified must relate directly to the goods, services or works to be provided and not
defined, so that there is a common understanding of what it means.
Some examples of award criteria are given below
Quality/Technical Merit
Design, functional characteristics and aesthetics
Sustainability
Innovation, where appropriate
Maintenance, ongoing technical support or after sales service
Delivery or period of completion
Price
Weighting the Criteria
The Purchasing Officer should work with the UIG to decide on an overall ratio or split between pr
The table below provides some suggested ratios depending on the nature of the commodity bein
Commodity Type
Routine
Leverage
Strategic
Description
Low Value/High Volume

Many Sources of Supply
Many Existing Alternatives
High spend area
Many Sources of Supply
Commercial involvement can influence price.

Strategic to Operations
Few Sources of Supply
Large Spend Area
Specification may be complex
Few Sources of Supply and alternatives

available
Bottleneck
Complex specifications
Bottleneck
If supply fails, impact on organisation could be

significant.
Weightings should always total 100
Scoring Methodology for Quality Criteria
The Purchasing Officer should ensure that a robust methodology is developed to assist with the e
An example of scoring methodology provided below:
0
Unacceptable
Nil or inadequate response. Fails to demonstrate an ability to meet the requirement.
Response is partially relevant but generally poor. The response addresses some elements of
Poor fulfilled..
1
2
Response is relevant and acceptable. The response addresses a broad understanding of the
Acceptable
Good
Response is relevant and good. The response is sufficiently detailed to demonstrate a good u
Excellent
Response is completely relevant and excellent overall. The response is comprehensive, unam
will be met in full.
Reference: PCD22-A
Released: 02/06/2014
warded on the basis of most economically advantageous tender (MEAT).
best value for money proposal taking account of both qualitative and financial criteria.
ndertaken strictly in accordance with the criteria and associated weightings that have been published in the con
question should also be published in the tender documentation Example provided below.
this process)
opriate award criteria, based upon their knowledge of the goods or services to be procured and the critical aspe
es or works to be provided and not focus the characteristics of the individual suppliers. Each award criterion sho
means.
an overall ratio or split between price and quality criteria and allocate weightings to any sub-criteria as appropri
n the nature of the commodity being procured.
Suggested Price/Quality Ratio
90:10 to 80:20
70:30 to 60:40
60:40 to 50:50 to 40:60
40:60 to 10:90
40:60 to 10:90
gy is developed to assist with the evaluation process.
n ability to meet the requirement.
he response addresses some elements of the requirement but contains insufficient/limited detail or explanation to demonstrate how the re
e addresses a broad understanding of the requirement but may lack details on how the requirement will be fulfilled in certain areas.
ufficiently detailed to demonstrate a good understanding and provides details on how the requirements will be fulfilled.
rall. The response is comprehensive, unambiguous and demonstrates a thorough understanding of the requirement and provides details of
Instructions for the use of the Quality Price Evaluation Matrix
1 Start by entering the Supplier's name for each tender received in column L. Type over the existing
and the Price Criteria, Quality Criteria and Combined worksheets will be updated automatically.
2 The criteria, sub-criteria and associated weightings used to evaluate tenders must be
included in the contract notice or tender documentation. Weightings applied at all levels must tot
3 In all three worksheets data should only be entered into yellow cells, all other cells will be populat
authomatically.
4 Enter the criteria, sub-criteria and associated weightings for Quality in the Quality Criteria worksh
5 Enter the criteria and overall weighting for Price in the Price Criteria worksheet. The example prov
allows for operating and running costs as well as end of life costs. If this in not applicable to your
project these rows can be left blank.
6 Actual quoted costs should be inserted into the Price Criteria worksheet.
7 The score entered into the Quality Criteria worksheet will be the final scores from the pre-defined
process agreed with your evaluators and shared with the suppliers in the tender documentation.
8 In the Price & Quality Combined worksheet there is the option to included quality thresholds whic
to be attained.
9 Your can add additional suppliers by inserting the appropriate number of columns in each workshe
copying the formula from existing columns. Start by inserting the changes on the Price and Qualit
worksheets then amend the Combined worksheet. Add additional names under the list provided o
mn L. Type over the existing content

be updated automatically.
enders must be
applied at all levels must total 100.
all other cells will be populated
n the Quality Criteria worksheet.
worksheet. The example provided

his in not applicable to your
scores from the pre-defined evaluation

the tender documentation.
ded quality thresholds which have
of columns in each worksheet and

nges on the Price and Quality
mes under the list provided opposite.
Insert Supplier's names in the cells below

Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
Tenderer's
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
name
cells below
Please note you should only type in yellow cells. Type shown in italics is for illustration purposes.
Actual criteria, weightings and data will vary from project to project.
Additional tenders can be added by inserting THREE columns per submission between existing tenders e.g. Tender 1 a
Tender 2 and copying the formula. Repeat in both the Quality Criteria and the Price and Quality Combined worksheets.
Project Weighting for Price

Price
Example Price Criteria/ Cost of Ownership
Acqusistion/Initial Capital Expenditure
PRICE OF GOODS / PROVISION OF SERVICE
Material
Labour/Hourly Rate
Overheads
Packaging
Profit
COMMISSIONING COSTS
Delivery
Installation
Training
Travel
Section Total
Owning/Operating/Recurrent Costs
Maintenance
Spares
Energy/Fuel Consumption
Upgrade Costs
Consumables
Section Total
End of Life/Disposal/Exit
Disposal/Exit Costs
Less Residual Value
Section Total
Total Price
N.B.
For recurrent costs insert the number of years applicable to the goods and provision of service.
Remember that it may differ from tender to tender e.g. extended warranty will reduce the num
If you insert rows within each section the formula should update automatically but if yyou add t
have to amend the formula manually to include the scores for the inserted row(s).
or illustration purposes.
sion between existing tenders e.g. Tender 1 and
the Price and Quality Combined worksheets.

Enter Ternderer's name on Instructions worksheet
Tenderer's name
No of
years
Annual Cost x No of
years
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
0.00
0.00
0.00
0.00
0.00
0.00
the goods and provision of service.

ended warranty will reduce the number of years maintenance is required.
pdate automatically but if yyou add the row at the bottom of each section you will
for the inserted row(s).
Tenderer's na
No of
years
Tenderer's name
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tenderer's name
No of
years
Tenderer's name
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tenderer's name
No of
years
Tenderer's name
0.00
Annual Cost
Tenderer's name
No of
years
0.00
Annual Cost
0.00
0.00
0.00
0.00
0.00
0.00
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
erer's name
Tenderer's name
Tenderer's name
Tenderer's na
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
erer's name
Tenderer's name
Tenderer's name
Tenderer's na
Tenderer's name
Please note you should only type in yellow cells. Type shown in italics is for illustration purposes.
Additional tenders can be added by inserting THREE columns per submission between existing tenders e.g.
Tender 2 and copying the formula. Repeat in both the Price and the Price and Quality Combined worksheets
Project Weighting for Quality
Quality
Example of Quality Criteria
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Functionality
What are the characteristics of .
Provide design details.
Provide detail of the functionality
Methodology
Describe how the system
What processes will be adopted
Innovation
Maintainability
After sales assistance and support
Security
Q15
Q16
Q17
Sustainability Considerations
Q18
Q19
Q20
N.B Weightings must total 100 for all the section and all the questions per section
N.B. If you insert rows within each section the formula should update automatically but
will have to amend the formula manually to include the scores for the inserted row(s).
n in italics is for illustration purposes.
ns per submission between existing tenders e.g. Tender 1 and
and the Price and Quality Combined worksheets.
Enter Ternderer's name on Instructions worksheet
Tenderer's name
Section Weighting
%
Question
Weighting
0
Score (out of 4) Weighted Score

0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
0%
0%
0%
0
0
0
d all the questions per section

rmula should update automatically but if you add the row at the bottom of each section you
ude the scores for the inserted row(s).
structions worksheet
er's name
Tenderer's name
Section Score
Tenderer's n
Score (out of 4) Weighted Score Section Score
0.0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0.0
of each section you
0.0
0
0
0
Score (out of 4)
Tenderer's name
Tenderer's name
Weighted Score Section Score
Score (out of 4) Weighted Score Score (out of 4)
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0.0
0
0
0
0.0
0.0
0
0
0
Tenderer's name
Tenderer's name
Score (out of 4) Weighted Score
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0
0
0
0
0
0
0.0
0
0
0
0
0
0
er's name
Tenderer's name
Section Score
Tenderer's n
0.0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0.0
0.0
0
0
0
Score (out of 4)
Tenderer's name
Tenderer's name
Weighted Score Section Score
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0
0
0
0.0
0.0
0.0
0.0
0
0
0
0.0
0
0
0
0.0
0.0
0
0
0
Tenderer's name
Tenderer's name

0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0
0
0
0.0
0
0
0
er's name
Tenderer's name
Tenderer's n
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
erer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Procurement Journey
Tender Evaluation Template
Procurement title:
Project X
Project quality weighting (%):
Project price weighting (%):
QUALITY SCORES
Example Technical & Quality Criteria
Functionality
Methodology
Innovation
Maintainability
After sales assistance and support
Security
Sustainability Considerations
Quality Totals (MUST EQUAL 100)
Is overall quality threshold reached?
FINAL QUALITY SCORE

PRICE SCORES
Tender price (whole life costs)
Price score
Individual
Quality
Threshold
(optional)
0
0
0
0
0
0
0
0.0
Lowest Cost
0.00
Project quality weighting x quality score
Project price weighting x price score
Order of tenders (ranking)

Comments
Signed by members of the Tender Board

(for file copy )
_______________________________
_______________________________
_______________________________
_______________________________
N.B. The scoring methodology for Quality built into this matix is 0-4, if you decide to use another scale the fo
Tender 1 and the equivilent cells for all other tenders must be amended accordingly.
The matrix works by allocating the full points available to the highest Quality score and the full points availab
and the other tenders are allocated overall scores relative to the difference between their results and the high
Enter Tenderer's name on Instructions worksheet

Project X
Members of Evaluation Team:
Overall Quality Threshold (optional):

Tenderer's name
Criteria Weight
(must total 100)
Quality Threshold
reached?
Score (out of 4)
0
0
0
0
0
0
0
0
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
= 100 points
= 100 points
ality weighting x quality score
price weighting x price score
Tenderer's name price =

Tenderer's name price score =
0% x 100.0 =
0% x 100.0 =
Overall score
Order of tenders (ranking)
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
de to use another scale the formula in cells G16 to G22 for
core and the full points available to the lowest Price

ween their results and the highest quality score and lowest price.
Please note you should only type in yellow cells. Type shown in italics is for illustation purpo
Additional Tenders can be added by inserting THREE columns per tender and copying form
an existing tender. Add the tenders to the Price Criteria and Quality Criteria worksheets FIR
align new entries across ALL three worksheets.
Member 1, Member 2, Member 3
name
Tenderer's name
Weighted Score
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Score (out of 4)
Weighted Score
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
100.0
0.00
100.0
0.0
0.0
100.0
0% x 100.0 =
0% x 100.0 =
0.0
1
0.00
100.0
0.0
0.0
0.0
1
Date____________________________________
cs is for illustation purposes.
tender and copying formula from

Criteria worksheets FIRST and
Tenderer's name
Tenderer's n
Quality Threshold
reached?
Score (out of 4)
Weighted Score
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
100.0
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1

Tenderer's name
Tenderer's name
Score (out of 4)
Weighted Score
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Score (out of 4)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
me price score =
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1

0% x 100.0 =
0% x 100.0 =
s name
Tenderer's name
Weighted Score
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Score (out of 4)
Weighted Score
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
100.0
0.00
100.0
0.0
0.0
0.0
1
100.0
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1
Tenderer's name
Tenderer's n
Quality Threshold
reached?
Score (out of 4)
Weighted Score
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
100.0
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1

Tenderer's name
Tenderer's name
Score (out of 4)
Weighted Score
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Score (out of 4)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
me price score =
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1

0% x 100.0 =
0% x 100.0 =
s name
Tenderer's name
Weighted Score
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
Quality Threshold
reached?
Score (out of 4)
Weighted Score
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Yes
100.0
0.00
100.0
0.0
0.0
0.0
1
100.0
0% x 100.0 =
0% x 100.0 =
0.00
100.0
0.0
0.0
0.0
1
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
derer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
Tenderer's name
derer's name
Tenderer's name
Tenderer's name
Tenderer's name

Introduction To The Quality Price Matrix

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Introduction To The Quality Price Matrix

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INTRODUCTION TO THE QUALITY PRICE MATRIX

Low Value/High Volume

Commercial involvement can influence price.

Few Sources of Supply and alternatives

If supply fails, impact on organisation could be

Scoring Methodology for Quality Criteria

Nil or inadequate response. Fails to demonstrate an ability to meet the requirement.

warded on the basis of most economically advantageous tender (MEAT).

60:40 to 50:50 to 40:60

gy is developed to assist with the evaluation process.

n ability to meet the requirement.

Instructions for the use of the Quality Price Evaluation Matrix

mn L. Type over the existing content

all other cells will be populated

n the Quality Criteria worksheet.

worksheet. The example provided

scores from the pre-defined evaluation

ded quality thresholds which have

of columns in each worksheet and

Insert Supplier's names in the cells below

Project Weighting for Price

sion between existing tenders e.g. Tender 1 and

the Price and Quality Combined worksheets.

the goods and provision of service.

Project Weighting for Quality

After sales assistance and support

n in italics is for illustration purposes.

ns per submission between existing tenders e.g. Tender 1 and

and the Price and Quality Combined worksheets.

Enter Ternderer's name on Instructions worksheet

Score (out of 4) Weighted Score

d all the questions per section

Score (out of 4) Weighted Score Section Score

of each section you

Weighted Score Section Score

Score (out of 4) Weighted Score Score (out of 4)

Score (out of 5) Weighted Score Section Score

Score (out of 4) Weighted Score

Score (out of 4) Weighted Score Section Score

Weighted Score Section Score

Score (out of 4) Weighted Score Section Score

Score (out of 4) Weighted Score Section Score

Project quality weighting (%):

Project price weighting (%):

FINAL QUALITY SCORE

Order of tenders (ranking)

Signed by members of the Tender Board

Enter Tenderer's name on Instructions worksheet

Members of Evaluation Team:

Overall Quality Threshold (optional):

Tenderer's name price =

de to use another scale the formula in cells G16 to G22 for

core and the full points available to the lowest Price

cs is for illustation purposes.

tender and copying formula from

Tenderer's name price =

Tenderer's name price =

Tenderer's name price =

Tenderer's name price =

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