Tender Analysis and Evaluation is a rigorous, mathematical process used to determine the "Most Economically Advantageous Tender" (MEAT). It moves beyond simply picking the lowest price to weighing cost against quality, risk, and technical capability.

Consulting in this area typically serves two masters: the Buyer (who needs a defensible, audit-proof selection process) and the Bidder (who needs to reverse-engineer the scoring matrix to win).

Here is the breakdown of the services, the standard 3-envelope procedure, and the scoring methodologies.

1. The Standard Procedure (The 3-Envelope System)

Most high-value tenders follow a strict sequential process to ensure fairness and reduce bias.

Phase 1: Compliance (The "Gatekeeper")

• Action: Checking the "Administrative Envelope."
• Focus: Pass/Fail criteria.
• Did they attach the bid bond/bank guarantee?
• Is the ISO 9001 certificate valid?
• Did they sign the anti-collusion declaration?
• Outcome: Any failure here results in immediate disqualification. The technical proposal is never even opened.

Phase 2: Technical Evaluation (The "Quality" Score)

• Action: Opening the "Technical Envelope."
• Method: Evaluators score the proposal blind to price. This prevents the "Halo Effect" where a cheap price makes a poor solution look acceptable.
• Criteria: Methodology, Project Schedule, Staff Experience, Risk Management.
• Consensus: Individual evaluators (e.g., 3 experts) score independently, then meet to iron out discrepancies and agree on a final technical score.

Phase 3: Commercial Evaluation (The "Price" Score)

• Action: Opening the "Financial Envelope."
• Method: Applying a mathematical formula.
• Analysis: Checking for Abnormally Low Tenders (ALT). If a bid is >20% lower than the average, the consultant investigates if the bidder has missed a scope item or is planning to cut corners dangerously.

2. Scoring Methodologies (The Math)

The consulting value lies in designing the right formula.

• MEAT (Most Economically Advantageous Tender):
• A weighted split, commonly 60% Technical / 40% Commercial (for complex services) or 30% Technical / 70% Commercial (for commodities).
• Inverse Proportionality Formula:
• Used to calculate the price score.
• $$Score = \left( \frac{\text{Lowest Price}}{\text{Bidder's Price}} \right) \times \text{Max Points}$$
• Effect: It penalizes expensive bids linearly.
• Linear Interpolation:
• Used when you want to cap the penalty for expensive bids.

3. Consulting Services Offered

Service	Target Audience	Description
Bid/No-Bid Analysis	Bidder	Analyzing the RFP to see if the tender is "wired" for a competitor or if the profit margin is too low to be worth the effort.
Red Team Review	Bidder	A mock evaluation. Consultants act as the buyer's evaluators and score the draft proposal to find gaps before submission.
Criteria Design	Buyer	Writing the RFP scoring matrix to ensure it selects the best vendor, not just the cheapest one.
Audit & Defense	Buyer	Writing the "Tender Evaluation Report" (TER) that serves as the legal defense if a losing bidder sues the agency.