Scoring savings
An alternative to scoring price is to award marks for the savings that bidders’ propose on the current cost of the services.
For example the current cost is £1 million. The contracting authority has carried out market testing which has shown that it is able to achieve savings of at least 20% on this service. In its procurement, the contracting authority has imposed a mandatory price ceiling of 20% less than the current cost to it of receiving the services, that is, £800,000.
Bids which exceed the £800,000 cap will be rejected as non-compliant. Bids which demonstrate additional savings will score additional points.
| Desired Max tender price threshold) -tender price= saving |
| Saving/threshold =% |
| Score (out of 10) | Submitted tender price (£) | Equivalent percentage saving |
| 10 | £800,000 | 20% |
| 9 | 19% | |
| 8 | 18% | |
| 7 | 17% | |
| 6 | 16% | |
| 5 | 15% | |
| 4 | 14% | |
| 3 | 13% | |
| 2 | 12% | |
| 1 | 11% | |
| 0 | 10% |