| As how one quantifies VFM can be an inexact science, bidders can struggle to
demonstrate how their respective offering provides demonstrable VFM for the Government. For
example, providing the lowest fixed-cost price does not guarantee that they have
offered the best value for money, as hidden costs and other non-financials will
shape what constitutes the true final price.
Proposal Manager Toolkit - Clarifications
With this is mind, you need to demonstrate how your offer can be clearly understood and
quantified if you want to win government contracts.
The Dept of Finance guidelines states that contracts are typically awarded based on
either:
a) Suitability - this is when the lowest price tender is suitable in
relation to the capacity, organization, experience, performance, financial standing,
compliance and quality standards, e.g. ISO certification, which the contract requires.
Or
b) MEAT - Most Economically Advantageous Tender. This
refers to factors such as the period for completion, maintenance costs, technical merit,
and cost effectiveness.
MEAT differs from suitability in that the government agency is not legally bound to
accept the lowest bid.
PS
Government agencies know from experience that it is not an uncommon practice for
bidding consultancies to offer a low entry bid, and then generate additional revenues from
change control and other means, thereby going over-budget in the process and failing to
deliver on time. More details are located at www.gov.ie
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