What is the Bid Evaluation Method? Regulations on Bid Evaluation Methods

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What is the bid evaluation method?

The bid evaluation method is the way the procuring entity or expert panel uses to review, analyze, compare, and rank the bids of contractors based on criteria specified in the tender documents. The evaluation is usually based on several factors such as: the contractor's capacity and experience, technical solutions, implementation schedule, bid price, economic efficiency, and other requirements of the tender package.

Through the bid evaluation method, the procuring entity can select the contractor that best meets the requirements of the tender package, while ensuring the principles of competition, fairness, transparency, and economic efficiency in the bidding process. Depending on the nature, scale, and type of tender package, current laws prescribe different evaluation methods to be applied appropriately.

Methods for Evaluating Bidding Documents According to the 2023 Bidding Law

The 2023 Bidding Law stipulates various methods for evaluating bidding documents to suit different types of tenders and the practical requirements for contractor selection. Each method has its own evaluation approach, scoring criteria, and ranking principles, helping the procuring entity select the contractor that best meets the technical, financial, and performance requirements of the tender package.

Currently, according to the 2023 Bidding Law, bid evaluation is carried out using four main methods, including:

• Lowest Price Method

• Evaluated Price Method

• Combined Technical and Price Method

• Technical-Based Method

Each method will be applied depending on the nature, scale, field, and requirements of each specific tender package. At the same time, the evaluation criteria, the method of determining contractor rankings, and the content applied to each method also differ to ensure the selection of the contractor that best meets the requirements of the bidding package. Specifically as follows

For bidding packages for non-consulting services, procurement of goods, construction, and mixed packages

Based on Article 58 of the 2023 Bidding Law and point b, clause 33, Article 1 of the Law amending and supplementing No. 90/2025/QH15, the method for evaluating bid documents for bidding packages for non-consulting services, procurement of goods, construction, and mixed packages is stipulated as follows:

“1. Lowest Price Method
a) The lowest price method is applied to tenders where technical, financial, and commercial proposals are considered to be on the same level when meeting the requirements of the tender documents;
b) The bidder whose tender documents meet the technical requirements and whose bid price after correction and adjustment of discrepancies (if any), minus any discounts (if any), is the lowest ranked.
2. Evaluation Price Method
a) The evaluation price is the bid price after correction and adjustment of discrepancies as required by the tender documents, minus any discounts (if any), plus factors for conversion on the same level for the entire lifecycle of goods, works, and non-consulting services. The evaluation price is used to rank tender documents for procurement of goods, construction, non-consulting services, and mixed tenders applying open bidding, limited bidding, or competitive bidding;
b) Evaluation Price Method The price is applied to the bid package where the converted costs are on the same level in terms of technical, financial, and commercial factors for the entire life cycle of the goods, works, and non-consulting services;

c) One or more factors converted on the same level to determine the evaluated price include: necessary costs for operation, maintenance and other costs related to interest, schedule, quality of goods, services or construction works under the bid package; capacity, efficiency; statistical results, evaluation of the performance of similar previous contracts, including consideration of origin; sustainable bidding and other factors;

d) The bidder with the lowest evaluated price is ranked first.

3. Technical-Based Method
   a) The technical-based method may be applied to bid packages requiring the use of technology or products belonging to the List of Strategic Technologies and Strategic Technology Products as stipulated by the law on science, technology and innovation, Laws on high technology;

b) The bidder whose bid meets the technical requirements and achieves the highest technical score will be ranked first and invited to open their financial proposal, which will serve as the basis for contract negotiation.
4. For evaluation criteria regarding capacity and experience, a pass/fail criterion will be used. For evaluation criteria regarding technical aspects, a scoring method or a pass/fail criterion will be used. For methods combining technical and price, and methods based on technical aspects as stipulated in Clauses 3 and 3a of this Article, a scoring method will be used to establish the technical evaluation criteria. When using a scoring method, a minimum required technical score of no less than 70% of the total technical score must be stipulated.”

Thus, according to the provisions of the 2023 Bidding Law, for non-consulting service, goods procurement, construction, and mixed packages, the bid evaluation methods include: the lowest price method, the evaluated price method, and the technical-based method. Each method will be applied depending on the nature, technical requirements, and objectives of selecting a contractor for each package to ensure the selection of a contractor that best meets the technical, financial, and performance requirements.

For consulting service contracts

Unlike contracts for the procurement of goods, construction, or non-consulting services, the evaluation of bids for consulting service contracts is usually more closely scrutinized in terms of the contractor's professional capacity, experience, and the quality of their technical solutions.

According to Article 59 of the 2023 Bidding Law, the methods for evaluating bids for consulting service contracts include: the lowest price method, the fixed price method, the combined technical and price method, and the technical-based method.

FAQ - Frequently Asked Questions Regarding Bid Evaluation Methods

To better understand bid evaluation methods, please refer to the following frequently asked questions.

1. In the case of a tender using the lowest price method, if two bidders offer the same price, how will the ranking be determined?

Based on Clause 18, Article 140 of Decree 214/2025/ND-CP, the following is stipulated:
“In cases where, after evaluation, multiple bidders are rated as the best and equal, the following order of priority shall apply until a winning bidder is selected:
a) Awarding the contract to small and medium-sized enterprises owned by women in accordance with the law on supporting small and medium-sized enterprises (if any);
b) Awarding the contract to the bidder with a higher technical score or fewer acceptable technical evaluation criteria in the case of a bid package applying the lowest price method; awarding the contract to the bidder with a lower bid price after correction, adjustment of discrepancies, and deduction of discounts (if any) in the case of a bid package applying the evaluated price method or a combined technical and price method;
c) Awarding the contract to the bidder with its head office in the locality where the bid package is implemented;
d) Awarding the contract to the bidder employing a significant number of tradespeople. a) Awarding the contract to a contractor employing a larger number of ethnic minority workers with labor contracts of 3 months or more, still valid at the time of bidding;

d) Awarding the contract to a contractor employing a larger number of female workers with labor contracts of 3 months or more, still valid at the time of bidding;

e) Awarding the contract to a contractor employing a larger number of female workers with labor contracts of 3 months or more, still valid at the time of bidding;

g) Allowing these contractors to resubmit their bids to select the contractor with the lowest bid. Contractors are not allowed to bid higher than the price they initially submitted after corrections and adjustments, excluding any discounts (if applicable). Resubmission of bids shall be carried out in accordance with the provisions of point a, clause 8 of this Article;

h) Inviting these contractors to participate in online bidding using a simplified procedure. Contractors are not allowed to submit bids higher than the contractor's price. “The bid has been corrected after errors and discrepancies have been adjusted, and the discount value (if any) has been deducted.”

Therefore, in the case of a tender package applying the lowest price method but with two bidders offering the same price, the ranking of bidders will be carried out in the order of priority as above until a winning bidder is selected.

2. What criteria are used to evaluate the bid documents of investors?

According to Article 62 of the 2023 Law on Bidding, the evaluation of bid documents of investors is carried out on the basis of the following criteria:

• Criteria for evaluating the investor's capacity in terms of finance, ability to arrange capital, and experience in implementing similar investment and business projects;

• Criteria for evaluating the investor's investment and business plan, including technical, social, and environmental criteria;

• Criteria for evaluating the efficiency of land use and the efficiency of investment in the development of the industry, sector, and locality.

3. For consulting service packages with high and specific technical requirements, what is the minimum technical score required as a percentage of the total technical score?

Based on Clause 5, Article 63 of Decree 214/2025/ND-CP, the following is stipulated:

“The technical proposal is considered to meet the technical requirements when the technical score is not lower than 70% of the total score (80% for consulting service packages with high and specific technical requirements) and the score for each requirement regarding solutions and methodology, personnel, and technology transfer (if any) is not lower than 60% of the maximum score for that requirement (not lower than 70% for consulting service packages with high and specific technical requirements). Regarding the criteria for the contractor's experience and capacity, the necessity of specifying a minimum score for this general criterion will be determined based on the nature of the bidding package.”

Therefore, for consulting service contracts with high and specific technical requirements, when developing technical evaluation criteria, the minimum required score must not be lower than 80% of the total technical score.

If you need clarification on any issues arising during the bidding process, your company can access the Bidding Support Center of the Bidding Ecosystem to receive answers from AI Bidding Consultants (see user guide HERE) or Bidding Experts.

Conclusion

The bid evaluation method is a crucial basis for the bidding entity to select a contractor that meets the requirements of the contract, while ensuring fairness, transparency, and efficiency in the bidding process. Understanding each evaluation method, its application conditions, and related considerations will help organizations and businesses be more proactive in the bidding process and improve their ability to meet the requirements of the tender documents.

If you need assistance understanding software packages or consulting related to bidding situations, please contact:

• Bidding Consulting and Support Center: https://support.dauthau.net

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• Email: contact@dauthau.asia

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