I personally prefer the relative method of scoring price but an alternative might be scoring savings
Scoring savings
An alternative to scoring price is to award marks for the savings that bidders’ propose on the current cost of the services.
In the following example, the cost of the current service is £1 million. The contracting authority has carried out market testing which has shown that it is able to achieve savings of at least 10% on this service. In its procurement, the contracting authority has imposed a mandatory price ceiling of 10% less than the current cost to it of receiving the services, that is, £900,000. Bids which exceed the £900,000 cap will be rejected as non-compliant. Bids which demonstrate additional savings will score additional points, up to a maximum of an overall 20% saving:
Score (out of 10) | Submitted price (£) | Equivalent percentage saving |
10 | £800,000 | 20% |
9 | £810,000 | 19% |
8 | £820,000 | 18% |
7 | £830,000 | 17% |
6 | £840,000 | 16% |
5 | £850,000 | 15% |
4 | £860,000 | 14% |
3 | £870,000 | 13% |
2 | £880,000 | 12% |
1 | £890,000 | 11% |
0 | £900,000 | 10% |
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