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Price quality method of supplier selection tool - proposal

evaluation calculations spreadsheet

Notes on use of this spreadsheet

 The spreadsheet performs the calculations only for a price quality method evaluation. If one or
more alternative proposals are received the spreadsheet also allows you to include any added v
premium in the calculation process. The spreadsheet does not help with determining the grades
each proposal for each non-price attribute or with determining the amount of any added value
premium.
 A 'template' sheet is included with sufficient columns to accommodate 20 proposals and suffici
rows to accommodate 20 alternative proposal items.
 To use this 'template' sheet enter data – price weight, price estimate, names of proposers, attribu
to be graded, weights and grades. The spreadsheet will calculate the supplier quality premium f
each proposal. Where alternative proposals are to be evaluated any added value premiums may
also be entered. Finally when the 'envelope 1' evaluation is complete the prices from each
'envelope 2' are entered to identify the preferred proposal.
 All dollar amounts are shown to the nearest cent to reinforce the point that calculations must be
performed to that level of precision. If you use this spreadsheet calculations will be done to a
sufficiently high level of precision. The option of working to the displayed level of precision m
remain switched off.
 This spreadsheet has been protected to help prevent accidental overwriting of formulae etc. As
long as sheet protection remains on only the yellow shaded cells will accept data.
 If additional rows for further added value items are required, the template sheet will need to be
temporarily unprotected while they are added.
 Four worked example sheets are also included. Data in the sheets named Example 1 and Examp
is real data from actual evaluations. Example 4 is fictitious and is included to illustrate how an
added value premium is handled. Example 3 uses a low price weight and is intended to be a

NZ Transport Agency's Procurement manual Price quality method evaluation tool notes
Price quality method of supplier selection
Price weight and estimate
Price weight
Price estimate ($)
Sum of all weights (must be 100) 0

Non-price attribute evaluation

Proposal 1 Proposal 2 Proposal 3 Proposal 4
Non-price attributes Grade Non-price
pass/fail or attribute
exclude weights

Grades awarded
Relevant experience
Relevant skills
Methodology
Track record
Resources
Financial viability

Weighted sum of the non-price attribute grades blank blank blank blank
Weighted sum margin (weighted sum - lowest weighted sum) blank blank blank blank
Supplier quality premium blank blank blank blank

Added value premiums

Added value item 1
Added value item 2
Added value item 3
Added value item 4
Add rows for further added value items here (see note 6)
Sum of individual premiums (added value premium) 0.00 0.00 0.00 0.00

Determination of preferred proposal

Supplier quality premium plus added value premium ($) blank blank blank blank
Proposal price ($)

Price less supplier quality premium and added value premium ($) blank blank blank blank
Preferred proposal
Price quality method of supplier selection
Price weight and estimate
Price weight 70
Price estimate ($) 2,190,602.87
Sum of all weights (must be 100) 100

Non-price attribute evaluation

Proposal 1 Proposal 2 Proposal 3 Proposal 4
Non-price attributes Grade Non-price Alice Bob Catherine Donald
pass/fail or attribute
exclude weights

Grades awarded
Relevant experience Grade 5 65 65 70 60
Relevant skills Split
Methodology Grade 7 50 80 65 55
Track record Grade 5 45 70 65 50
Resources Grade 3 60 70 65 60
Financial viability Exclude
Management Skills Grade 5 55 75 65 55
Technical Skills Grade 5 60 65 60 60

Weighted sum of the non-price attribute grades 16.6 21.5 19.5 16.9
Weighted sum margin (weighted sum - lowest weighted sum) 1.7 6.6 4.6 2.0
Supplier quality premium 51,635.64 204,977.84 143,953.90 62,588.65

Added value premiums

Added value item 1
Added value item 2
Added value item 3
Added value item 4
Add rows for further added value items here (see note 6)
Sum of individual premiums (added value premium) 0.00 0.00 0.00 0.00

Determination of preferred proposal

Supplier quality premium plus added value premium ($) 51,635.64 204,977.84 143,953.90 62,588.65
Proposal price ($) 2,198,761.30 1,967,869.15 2,182,444.44 2,517,700.33

Price less supplier quality premium and added value premium ($) 2,147,125.66 1,762,891.31 2,038,490.54 2,455,111.68
Preferred proposal
Price quality method of supplier selection
Price weight and estimate
Price weight 70
Price estimate ($) 1,000,000.00
Sum of all weights (must be 100) 100

Non-price attribute evaluation

Proposal 1 Proposal 2 Proposal 3 Proposal 4
Non-price attributes Grade Non-price Alice Bob Catherine Donald
pass/fail or attribute
exclude weights

Grades awarded
Relevant experience Grade 3 69 75 68 75
Relevant skills Split
Methodology Grade 9 55 80 57 60
Track record Grade 3 83 87 84 85
Resources Grade 7 78 87 76 85
Financial viability Exclude
Technical skills Grade 4 83 87 80 87
Management skills Grade 4 82 84 79 82

Weighted sum of the non-price attribute grades 21.6 25.0 21.4 22.9
Weighted sum margin (weighted sum - lowest weighted sum) 0.2 3.6 0.0 1.5
Supplier quality premium 2,857.14 51,714.29 0.00 22,000.00

Added value premiums

Added value item 1
Added value item 2
Added value item 3
Added value item 4
Add rows for further added value items here (see note 6)
Sum of individual premiums (added value premium) 0.00 0.00 0.00 0.00

Determination of preferred proposal

Supplier quality premium plus added value premium ($) 2,857.14 51,714.29 0.00 22,000.00
Proposal price ($) 1,250,240.00 1,117,030.00 1,109,470.00 1,182,970.00

Price less supplier quality premium and added value premium ($) 1,247,382.86 1,065,315.71 1,109,470.00 1,160,970.00
Preferred proposal Preferred
Price quality method of supplier selection
Price weight and estimate
Price weight 20
Price estimate ($) 1,000,000.00
Sum of all weights (must be 100) 100

Non-price attribute evaluation

Proposal 1 Proposal 2 Proposal 3 Proposal 4
Non-price attributes Grade Non-price Alice Bob Catherine Donald
pass/fail or attribute
exclude weights

Grades awarded
Relevant experience Grade 15 69 75 68 75
Relevant skills Split
Methodology Grade 25 55 80 57 60
Track record Grade 15 83 87 84 85
Resources Exclude
Financial viability Exclude
Technical skills Grade 10 83 87 80 87
Management skills Grade 15 82 84 79 82

Weighted sum of the non-price attribute grades 57.2 65.6 56.9 60.0
Weighted sum margin (weighted sum - lowest weighted sum) 0.2 8.7 0.0 3.1
Supplier quality premium 12,500.00 435,000.00 0.00 155,000.00

Added value premiums

Added value item 1
Add rows for further added value items here (see note 6)
Sum of individual premiums (added value premium) 0.00 0.00 0.00 0.00

Determination of preferred proposal

Supplier quality premium plus added value premium ($) 12,500.00 435,000.00 0.00 155,000.00
Proposal price ($) 1,250,242.00 1,117,033.00 1,109,473.00 1,182,972.00

Price less supplier quality premium and added value premium ($) 1,237,742.00 682,033.00 1,109,473.00 1,027,972.00
Preferred proposal Preferred
Price quality method of supplier selection
Price weight and estimate
Price weight 70
Price estimate ($) 1,000,000.00
Sum of all weights (must be 100) 100

Non-price attribute evaluation

Proposal 1 Proposal 2 Proposal 3 Proposal 4
Non-price attributes Grade Non-price Alice Bob Bob's alternative
pass/fail or attribute
exclude weights

Grades awarded
Relevant experience Grade 5 70 75 75
Relevant skills Split
Methodology Grade 5 80 75 60
Track record Grade 5 70 75 75
Resources Grade 5 85 80 80
Financial viability Exclude
Technical Skills Grade 5 80 80 80
Management skills Grade 5 70 75 75

Weighted sum of the non-price attribute grades 22.8 23.0 22.3 blank
Weighted sum margin (weighted sum - lowest weighted sum) 0.5 0.8 0.0 blank
Supplier quality premium 7,142.86 10,714.29 0.00 blank

Added value premiums

Added value item 1 20,000.00
Added value item 2 50,000.00
Added value item 3
Added value item 4
Add rows for further added value items here (see note 6)
Sum of individual premiums (added value premium) 0.00 0.00 70,000.00 0.00

Determination of preferred proposal

Supplier quality premium plus added value premium ($) 7,142.86 10,714.29 70,000.00 blank
Proposal price ($) 1,050,600.00 1,087,800.00 1,100,300.00

Price less supplier quality premium and added value premium ($) 1,043,457.14 1,077,085.71 1,030,300.00 blank
Preferred proposal Preferred