After the technical evaluation, financial evaluation is conducted to determine the evaluated price of each bid and to determine the lowest evaluated bid, which is substantially responsive to the requirements of the bidding document. The evaluated price for each bid shall be determined by:
- Taking the bid price, as read out at the bid opening;
- Correcting any arithmetic errors, in accordance with the methodology stated in the bidding document;
- Applying any non-conditional discounts offered in the bid;
- Making adjustments for any non-material non-conformity, error or omission;
- Applying any additional evaluation criteria, through an increase or decrease to the bid price in accordance with the weighting system established in the bidding documents;
- Converting all bids to a single currency, using the currency and the source and date of exchange rate indicated in the bidding document; and
- Applying any margin of preference indicated in the bidding document.
Bids must be compared by ranking them according to their evaluated price and determining the bid with the lowest evaluated price. Where the bidding documents included more than one lot and permitted bidders to offer discounts, which were conditional on the award of one or more lots, the Evaluation Committee has to conduct a further financial evaluation, to determine the lowest evaluated combination of bids.
Bidders are permitted to offer discounts to their bids (and this should be clearly stated in the bidding documents). It must be clearly included in the bid and read out at the bid opening. No discount may be offered or taken into account after the deadline for submission of bids. Any non conditional discounts may be taken into account in the financial evaluation and comparison of bids. Bidders may also be permitted to offer discounts, which are conditional on the award of one or more lots. Conditional discounts shall be taken into account in a further financial evaluation.
If the discount is based on prompt payment and included in a bid, it can become a term of the contract if that bid is accepted, and must be utilized by the Procuring Entity, if payment is made in accordance with the terms of the discount. However, prompt payment discounts cannot be considered in the evaluation and comparison of bids, unless such discount is taken into account through the application of any additional evaluation criteria.
