The purpose of evaluating bid submissions is to clearly determine a preferred supplier as required by the Act. It is a rigorous examination of responses for compliance to terms, conditions, specifications and evaluation criteria established in the open or limited call for bids. Depending on the strategy chosen and the procurement tool utilized, there are differences in the evaluation methodology. Also, a participant in the evaluation process shall not be in a conflict of interest position and, if so, shall be removed from the evaluation to maintain the integrity of the process.

The evaluation process for a procurement that will be determined by price is normally performed by the procurement official responsible for the file. This review entails looking at three main components: process requirements, mandatory requirements and technical specifications. Process requirements include ensuring the submission was received on time; the document is duly signed and executed and delivery conditions are met. Mandatory items may include the submission of bonding, insurance certificates, and samples, among others. The technical specifications outline the attributes of the commodity that is being acquired. The technical evaluation may be performed by the procurement official or may be forwarded to a technical expert for their review. If a technical expert is utilized, the onus is on the procurement official to substantiate any recommendations made. At any point during an evaluation, a submission may be rejected for failure to meet the necessary requirements.

8.1  Application of Provincial Supplier Allowance

In the evaluation of submissions, for either a limited or open call, public bodies must apply a ten per cent (10%) reduction to the bid price of a provincial supplier prior to the evaluation, provided the estimated value is below trade agreements thresholds.

A provincial supplier is defined as a supplier of goods and services or public works that has a place of business in the province.  A place of business is defined as an establishment where a supplier regularly conducts its activities on a permanent basis. For clarity, the place of business should have a storefront that is clearly identified by name and is accessible during normal business hours, unless the business is an incorporated home-based or sole proprietorship.

The thresholds for the Canadian Free Trade Agreement (CFTA), which has the lowest current thresholds, may be found at: https://www.gov.nl.ca/ppa/canadian-free-trade-agreement/

For clarity, the preference cannot be applied when the estimated value is greater than trade agreement thresholds. Current CFTA thresholds are as follows:

Public Bodies	Goods	Services	Public Works
Departments	$26,400	$105,700	$105,700
MASH	$105,700	$105,700	$264,200
Crown Corporations	$528,300	$528,300	$5,283,200

The 10% reduction only needs to be applied when the evaluation includes suppliers that are not provincial suppliers.

For a tender or quote scenario, the submission with the lowest price, following the application of the provincial supplier reduction allowance if required, and that meets all the requirements will ultimately be determined to be the preferred supplier and be awarded a contract if an award is made.

In a request for proposals-type process, where a number of factors are considered, a similar process is followed. A review of administrative and mandatory items is required followed by the application of the evaluation criteria established in the document, following the application of the provincial supplier reduction allowance if required. The main difference between this and lowest price procurement is that evaluations for this format are performed by a committee so as to reduce the subjectivity associated with the process.

When identical bids are received, the preferred supplier shall be the provincial supplier when bids are below trade agreement thresholds. Otherwise, the preferred supplier shall be determined by a coin toss in the presence of the bidders. If the bidder(s) is unable to personally view the coin toss he/she may nominate someone to attend in his/her place or send written consent to perform the coin toss without a representative.

In all circumstances, the evaluation process shall be documented and form part of the procurement record.