Rated criteria

Rated criteria are used to evaluate the quality, sustainability, and innovativeness of the bids/ proposals. They have been used extensively for many years to select consultants. The design of rated criteria must address the specific risks, opportunities, and objectives in each procurement.

Rated criteria normally assess the methodology prepared by bidders in response to an RfB/RfP. It is also possible to include additional items related to the general construction practice and management capability of the bidder, at both the corporate and site operation level.

Understanding the complexity of the technical specifications and/or employer’s requirements, the possible technological solutions, and the best procurement procedures in the sector, is essential to developing a rated criteria–based system to evaluate bids. Limit the number of criteria used for rating to only what is necessary. Select and formulate the criteria in a clear and unbiased manner. If needed, use additional sub-criteria to assess technical aspects such as quality and sustainability.

The objective of rated criteria is to assess factors beyond the minimum technical requirements. In certain circumstances, borrowers may set a minimum quality threshold to make sure that only bids/proposals that show that they can provide the required standard of quality are considered.

For example, the borrower may specify that the minimum overall technical score is 70 percent, with no less than 65 percent for any criterion, and no less than 50 percent for any of the sub-criteria. The minimum quality threshold may apply to the total combined score of all rated criteria, the combined score of selected rated criteria/sub-criteria, and/or the score for an individual rated criterion/sub-criterion. Establishing a scoring scale enhances clarity and objectivity in evaluations. It helps minimize the use of excessive discretion and facilitates the assessment of submissions as excellent, acceptable, or unacceptable.

In summary:

• Rated Criteria are non-price factors that are taken into account when evaluating Bids/Proposals
• The factors measure the quality aspects of Bids/Proposals
• Rated Criteria are designed to address the specific risks, opportunities, issues and quality factors in each procurement
• This flexibility supports a fit-for-purpose approach to the evaluation of Bids/Proposals
• Contracts are awarded based on the optimal balance of ‘quality’ and ‘cost’, which is not necessarily the lowest price. This represents the best Value for Money

General Principles

• Rated Criteria are subset of Evaluation Criteria
• Rated Criteria are qualitative and help measure differentiation of Bids/Proposals
• Prioritized and focused on critical technical matters e.g. Works methodology, credibility of related plans, risk assessments, proposed approaches to implement the contract, deliver environmental & social objectives etc.
• Weighted according to importance
• Tailored to specific project needs (avoid a cookie cutter approach)
• Use two-envelopes for all applicable procurements

Why use Rated Criteria ?

• Reflects international best practice (globally more countries are using Rated Criteria, some have been using already for 30 years +)
• Supports better project outcomes (improves quality of infrastructure, faster implementation, reduced cost/time overruns)
• Better equips projects to manage different risks (e.g., environmental, social, supply chain security and cybersecurity, etc.)
• Unlocks new opportunities (e.g., climate, leverage market innovation)
• Encourages participation from (potentially new) highly qualified suppliers and motivates them to offer better solutions, because they know their efforts will be considered
• Sends a strong change signal to the market (particularly any who game on low initial price)

Establishment of rated criteria for new international procurements

Since 2016, the World Bank’s Procurement Framework has encouraged the use of Rated Criteria -or non-price factors- to evaluate quality, sustainability, and innovative aspects of bids in decision making. This has enabled borrowers to adopt a more strategic approach to procurement, including the use of evaluation criteria that prioritizes fit-for-purpose solutions rather than the lowest evaluated price.

In March 2023, the World Bank announced the use of rated criteria as the default approach for new international procurement advertised on or after September 1, 2023, using Bank Standard Procurement Documents (SPDs).1 Rated Criteria are used to evaluate nonprice attributes of Bids/Proposals, including quality, risks/mitigations, opportunities, sustainability, and other technical aspects.
The use of rated criteria in public procurement is not a new concept. Such criteria have been widely used in many countries for more than 30 years. Using rated criteria with financial costs provides a true value assessment that focuses on quality, risk, sustainability, and other key criteria.

The Bank’s guidance, tools, and resources to implement this initiative2 were incorporated in the fifth edition of procurement regulations,3 and the SPDs were updated accordingly.4 It is mandatory to use rated criteria, but the objectives, scope, and selection of rated criteria are expected to vary based of the project context. The number of rated criteria depend on the complexities, risks, and value of the contracts, and the knowledge and experience of borrowers and the Bank in addressing challenges in procurement and contract management.

“Evaluating Bids and Proposals Including Use of Rated Criteria for Procurement of Goods, Works, and Non-Consulting Services,” explains how to apply rated criteria to evaluate non-price factors such as technical, quality, sustainability, environmental, social, and innovative aspects of bids when making an award decision.5 This note provides guidance on applying rated criteria and sub-criteria in evaluating bids related to transport sector works (including new construction, rehabilitation, reconstruction, and improvement of roads, mass transit systems, railways, ports, and airports).

It primarily deals with civil works contracts. Rated criteria, however, are also used to assess international procurement of goods and non-consulting services.

Establish rated criteria to assess competencies for six categories:

1. Contract management: Assess the bidder’s overall management capability, contract management skills, specific human capacity, and capacity in managing risks related to the contract.

2. Method statement: Assess the quality of the bidder’s understanding and approach to implement the contract and associated works (for example, building a particular static system for a bridge, using a particular soil stabilization technique, or curing concrete in a hot climate).

3. Work plan and mobilization: Assess the overall planning and scheduling of works procured, including staff and equipment mobilization, considering the specificities of the site; the construction period; the supply of materials, staff, and equipment; and other factors.

4. Quality, safety, and environmental management: Determine the bidder’s degree of readiness to manage various issues efficiently, effectively, and safely during contract implementation. In addition, evaluate the ability to assess risks involved in managing these issues, including preparing specific preliminary management plans, use of quality assurance and quality control methodology, and other factors.

5. Social aspects: Determine the bidder’s degree of readiness to manage various social issues efficiently, effectively, and safely during the contract implementation. While doing so, assess the risks involved in managing these issues, including preparation of specific preliminary management plans; labor influx and labor standards; diversity, equality, and inclusion; gender-based violence, including sexual exploitation and abuse and sexual harassment; and other factors.

6. Sustainable procurement: Assess the extent to which the bidder’s proposed method positively or negatively affects the environment, society, and the economy while also meeting the technical specifications and employer requirements. It evaluates the additional benefits provided by the bidder’s approach to carrying out the work.

Types of evaluation criteria

Different types of evaluation criteria are used to assess applications, bids, and proposals. These evaluation criteria are part of the overall evaluation approach.

The evaluation approach and setting of different evaluation criteria should be informed by the analyses and conclusions outlined in the borrower’s Project Procurement Strategy for Development (PPSD). Bidders must first meet predefined minimum qualification criteria, such as historical contract nonperformance and average annual construction turnover, which are evaluated on a pass-fail basis (Steps 1–3) (See below table).

The bid/proposal is disqualified and rejected if any qualifying requirements are not met. Qualified bids are then evaluated (Step 4). It is important not to duplicate criteria across Steps 2, 3, and 4. Criteria applied in Step 4 must be specifically related to the contract context and relate to documents prepared by each bidder for the proposal.

Where to use Rated Criteria?

• All new International Procurements advertised or invited on or after September 1, 2023, using a Bank Standard Procurement Document must use Rated Criteria.
• However, application of Rated Criteria is not mandatory for:
• Pharmaceuticals
• Vaccines
• Off the shelf goods and educational materials (e.g., published academic textbooks)
• Future commodities
• Direct Selection