Qualification requirements and award criteria: two questions you must not mix up

‘We had the best bid, but we were rejected.’ Many suppliers recognise that experience, and it stings. As we see it, a common explanation is that the supplier has mixed up two things that look alike but decide entirely different questions: the requirements placed on you as a supplier, and the criteria that pick the winner. Here we untangle the difference and show how to use it to your advantage.

Two gates, two questions

In practice, a tender has two gates. The first is the qualification requirements: minimum requirements for you as a supplier, such as financial standing, experience, expertise and systems. They answer the question ‘is this supplier capable of delivering?’. The second gate is the award criteria: price, quality, environment and other factors that are scored and weighted. They answer ‘which tender is best?’.

The logic is fixed. Under the Norwegian rules, which implement the EU directives, a supplier who does not meet the qualification requirements must be rejected, however good the tender is. The details may vary from country to country, but the principle is the same. Conversely, being overqualified earns no extra points at the award stage. Qualification is essentially pass or fail, while the competition is decided by the criteria.

One exception is worth knowing about. In competitions with prequalification, where the buyer limits how many suppliers may submit a tender, the qualified candidates are ranked against separate shortlisting criteria. You then have to qualify first, be among those selected next, and only then does your tender compete on the criteria.

Why the distinction exists

The distinction comes from the EU directives that underpin the rules on public procurement throughout the EEA. In the directives they are called ‘selection criteria’ and ‘award criteria’; in Norway we call the first group ‘kvalifikasjonskrav’, which translates as qualification requirements. The idea is to keep things orderly: first the suppliers who can do the job are screened, then their tenders compete on equal terms.

Does that mean the same factor can never appear in both places? No. The rules allow the same documentation, for example reference projects, to be used both for qualification and for the award, as long as what is being assessed is different. At qualification, the question is whether the company is capable of delivering. At the award stage, the criterion must concern the quality of what you will actually deliver under this contract, not the company in general.

The clearest example is the people. The organisation, qualifications and experience of the staff you propose for the assignment can be an award criterion, provided that the quality of the staff has a significant impact on how the contract is performed. In that case it is not the company's track record that counts, but the team you put forward. Read the tender documents carefully, and you will see where the buyer has placed what.

Where many stumble

• They reuse the company presentation. The qualification section is filled with sales copy, and the answers to the award criteria are filled with general praise of the company. Both miss the mark.
• They document minimum requirements with enthusiasm and criteria with carelessness. The effort goes where no points are awarded.
• They cannot tell what is what. A requirement for ‘experience from similar assignments’ can be a minimum requirement, an award criterion, or both with different content. If it is unclear in the contract notice or the tender documents, ask the buyer.
• They underestimate the forms. Above the EEA thresholds, you declare your qualifications in the ESPD form (European Single Procurement Document), and mistakes there quickly cause trouble. In Norway, the buyer is allowed to ask you to submit missing documents or correct errors, but is not obliged to. The details may differ in your country.

How to spend your effort in the right place

Read the tender documents in two rounds. The first round with a single question: what do we have to meet to take part at all? Check every qualification requirement, and be honest. If you are missing something, it is better to find out now. The second round: what earns points, and how many? Structure the tender around the award criteria and their weighting, and give the most space to where the most points are available.

Our experience from the Norwegian market is that the best bid writers do this almost mechanically. Minimum requirements are answered briefly, precisely and verifiably. Points are pursued where they are actually awarded.

In short

Qualification requirements decide whether you may take part. Award criteria decide whether you win. Keep them apart, and you avoid both being rejected on a technicality and wasting your best arguments where nobody is counting points.

This article is Cobrief's assessment of the rules and practice, not legal advice. If you are in doubt in a specific competition, check the tender documents and consider consulting a specialist.

Would you like a fresh pair of eyes on how you structure your tenders? We at Cobrief are always happy to have a chat.