Award Criteria
The criteria used by a contracting authority to evaluate tenders and select the winning bid. Common approaches include lowest price and MEAT (Most Economically Advantageous Tender).
In Detail
Award criteria are the specific standards against which submitted tenders are evaluated to determine the winning bid. Under EU Directive 2014/24/EU, contracting authorities must base the contract award on the most economically advantageous tender (MEAT), which can be assessed using one of three approaches: best price-quality ratio, cost-effectiveness (such as lifecycle costing), or lowest price alone. The criteria must be linked to the subject matter of the contract and clearly stated in the procurement documents.
The shift toward quality-based evaluation has been a deliberate policy goal of EU procurement reform. While lowest price remains permissible, contracting authorities are increasingly encouraged to use qualitative criteria such as technical merit, environmental performance, social value, innovation potential, delivery timelines, and after-sales service. Each criterion must be weighted and transparently disclosed to bidders so they can tailor their proposals accordingly.
Award criteria are distinct from selection criteria, which determine whether a supplier is qualified to participate. Selection criteria are pass/fail filters (financial standing, technical capacity, relevant experience), while award criteria are used to score and rank the tenders of qualified bidders. Conflating the two is a common error that can lead to procurement challenges and legal disputes.
Practical Context
How it works in practice
Procurement practitioners must carefully design award criteria at the planning stage, as they directly shape the competitive dynamics of a tender. Suppliers study award criteria closely to understand how their bids will be scored and allocate effort accordingly — if technical quality carries 70% of the weight, a supplier will invest heavily in their methodology and team CVs rather than competing solely on price. On the buyer side, poorly drafted award criteria are one of the most common sources of procurement challenges and complaints. TenderRadar extracts and displays award criteria from published notices so that suppliers can quickly assess whether a contract aligns with their competitive strengths.
Frequently Asked Questions
Can a contracting authority use lowest price as the sole award criterion?
Yes, lowest price is still a valid approach under the EU Directives, but it must be explicitly justified. Some member states, such as the Netherlands, have moved to restrict or discourage its use. When lowest price is used, the contracting authority still applies selection criteria separately to ensure bidder qualification.
How are award criteria typically weighted?
Weightings vary by contract type and authority. A common split for services is 60% quality / 40% price, though this can range from 70/30 to 50/50. Each sub-criterion (e.g., methodology, team experience, innovation) receives its own weight within the quality score. All weightings must be disclosed in the tender documents.
What is the difference between award criteria and selection criteria?
Selection criteria determine whether a supplier is eligible to participate (financial standing, technical capacity, past experience) and are assessed on a pass/fail basis. Award criteria evaluate the quality and value of the tender itself and are used to rank competing bids. A supplier must first pass selection criteria before their bid is scored against award criteria.
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