How to rig a bid evaluation #43

I read a great blog post by Peter Smith in which he highlights poor procurement practice. I have recreated one example of what he described to illustrate how weighted factor analysis can be rigged. The spreadsheet illustrates how the weightings in cell D3:D5 are ‘tweaked’ to ensure that the competitive pricing of Bidders 1 and 2 on the main packages are immaterial. Bidder 3 - in collusion with the buyer - is the dearest on the main packages, but submits a very competitive price on a minor package, ‘C’. As a result, Bidder 3 is recommended, as ceteris paribus, they are the “best value”.

The weightings in D3:D5 are ‘tweaked’

I have also included the “correct” weighting to show what ‘should’ have happened. And I have shown my workings on how I scored the pricing (by reference to the variance from the most expensive offer). I know it is not all about price and other factors may be more important. But how do you decide on or calculate your weightings? 

#procurement #procurementmanagement