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Definition: Evaluation criteria are used to rate or score proposals. They may be objective (e.g., “The proposed project manager must be a certified Project Management Professional, PM.”) or subjective (e.g., “The proposed project manager must have documented, previous experience with similar projects.”). Evaluation criteria are often included as part of the procurement documents. Evaluation criteria may be limited to purchase price if the procurement item is readily available from a number of acceptable sources (purchase price in this context includes both the cost of the item and ancillary expenses such as delivery). When this is not the case, other selection criteria must be identified and documented to support an assessment. For example:
• Understanding of need—as demonstrated by the seller's proposal
• Overall or life-cycle cost—will the selected seller produce the lowest total cost (purchase cost plus operating cost)?
• Technical capability—does the seller have, or can the seller be reasonably expected to acquire, the technical skills and
knowledge needed?
• Management approach—does the seller have, or can the seller be reasonably expected to develop, management processes and procedures to ensure a successful project?
• Financial capacity—does the seller have, or can the seller reasonably be expected to obtain, the necessary financial resources?
Acceptance Level:  Generally accepted
Alternative or Related Terms: Solicitation planning, request for proposal
Application Areas/Intended Uses: Evaluation criteria are an output from the solicitation planning process and are a key aspect of the decision-making process of selecting a vendor.
Chief Advantages: Evaluation criteria are essential to the procurement process because they form a clear basis for making an informed, objective decision on project vendors.