Common use of FINANCIAL EVALUATION Clause in Contracts

FINANCIAL EVALUATION. 1.8.1 Only the bidders that have been successful in achieving the required quality threshold will be subjected to a financial evaluation. All other bidders will be excluded from the financial and any further evaluation and/or consideration. 1.8.2 Bidders will be required to complete a pricing proposal for the delivery of each of the three Lots for three (with an option to extend for a further 12 months ) and four year contracts that they are competing for. The three Lots are Lot 1 – E-Channel, Lot 2 – Telephone Channel and Lot 3 – Face-to-Face. Each Lot will be evaluated separately. 1.8.3 The DWP will look to award a contract to the MEAT (Most Economically Advantageous Tender), this in effect means the DWP will select a contract term appropriate to the tenders with the lowest unit cost for pay band 4. 1.8.4 As previously stated, the desired DWP requirement is for services delivering LoA 2, therefore the payment model described in the table below places the greatest value in LoA2. 1.8.5 To evaluate the bid, Finance will assess the Pay Band 4 Unit Cost only The Median Unit Cost will be calculated and those bidders with a unit cost less than the Median Unit Cost + 20%, and have passed the qualitative and technical aspects of the evaluation, will be selected and awarded a contract. 1.8.6 The DWP reserves the right to award contracts to bidders whose average unit price exceeds the median plus 20% cap. 1.8.7 The evaluation methodology will be as follows:  There will be four pay bands, 1 – 4. Each of the four pay bands will reflect a level of assurance that the customer can achieve (the table below clearly identifies the pay banding and appropriate level of assurance).  IDPs are required to identify the Unit Cost price for Pay Band 4 only. The remaining three pay bands will then be assigned a weighting according to their level of importance to the Department (apart from Lot 3 where DWP will not be paying for less than LoA 2). The Pricing Proposal will automatically calculate the Unit Costs for the remaining pay bands based upon the predetermined weightings as identified below. The weightings are purely for payment purposes only and do not form part of the evaluation process.