Bid comparison: evaluating quotes fairly when they are not like for like

Bid comparison is the step between receiving supplier bids and awarding the work. It sounds like reading down a column of prices; in practice it is the most challenged part of any procurement, because bids rarely arrive like for like. One includes delivery, another excludes installation, a third quotes a different specification. A defensible comparison makes those differences visible, adjusts for them openly, and records why the winner won.

Set the rules before bids arrive

• The evaluation criteria and their weights — price, quality, delivery, service, risk.
• How price will be scored: lowest price gets full marks, others scored proportionally.
• How quality will be scored, with a scale and a description of what each score means.
• Mandatory requirements that eliminate a bid outright if missed.
• Who evaluates, and how conflicts of interest are declared.

Weights decided after bids are opened are the fastest way to lose a challenge. Write them down, date them, and share them in the request where your policy allows.

Bid comparison starts with normalising the bids

1. Put every bid into the same comparison table, with one row per supplier and one column per priced element.
2. Add missing elements at a stated assumed cost — if a bid excludes delivery, add a realistic delivery cost and note it.
3. Convert currencies and unit prices to a common basis.
4. Check arithmetic in every bid; errors are more common than you would expect.
5. Flag exclusions, qualifications and non-compliances in a separate column rather than burying them in notes.
6. Remove bids that fail a mandatory requirement before scoring the rest.

Score price and quality separately

Score quality blind to price where you can, then combine the two using the pre-agreed weights. Evaluators who see prices first tend to talk themselves into the cheap option or out of the expensive one. Record each evaluator's scores and the moderated result, not just the final number. A spreadsheet works well for this: Ettex Sheets keeps the normalised bid table, the scoring formulas and the weightings in one shared file, so every evaluator works from the same numbers and the calculation is visible to anyone who later asks how the decision was reached.

Record the decision

• The winning bid and the total weighted score of every bid.
• The adjustments made during normalisation and why.
• Reasons for rejecting non-compliant bids.
• Any clarifications requested from bidders, sent to all of them where fairness requires it.
• Sign-off by the person with authority for the spend.

Bid comparison sits in the middle of a sequence: a request for quotation or a tender produces the bids, and the chosen supplier moves into supplier onboarding and, over time, a supplier scorecard that checks whether the bid promises were kept.