Posted in RFP Scoring and Bid Analysis last updated on *April 15, 2016*

The aim of an RFP process is to reach a decision about which vendor, product or service best meets your requirements. The basic principle of a structured RFP is *decomposition* - breaking down a big decision into smaller and smaller component pieces by building a hierarchically structured questionnaire. Having done this, and having scored vendor's responses, the challenge is then to re-compose this information into a single answer - i.e. we need to calculate scoring totals.

SupplierSelect's scoring calculations are based on the principles of decomposition:

- The RFP questionnaire is structured as a hierarchy of sections, subsections and questions, nested to any depth.
- "Siblings" refers to groups of subsections or questions that share a common parent (e.g. questions in section 1.2.3)
- Each section and question has been awarded a weight (a raw numerical value)
- The relative percentage weight of a section or question is given by (weight / (sum of all sibling weights)).
- The maximum contribution of a subsection or question is capped by the weight of its parent section.
- The
*absolute total weight*of a question is therefore the product of (relative weight) * (parent absolute weight). - The
*normalized*total score for a vendor is the sum of (question score * absolute total weight).

Normalized scoring aligns with most peoples' intuition. It feels logical that a weight applied to a section caps the contribution of that section (and all subsections) to the overall score.

A longer article describing this approach to calculating total weighted scores is available on the SupplierSelect news site.

- For RFP analysis, what is the purpose of allocating weighting to rfp questions?
- Is training required to use SupplierSelect vendor evaluation tools?
- What are the standard RFP scoring methodologies?

Comments powered by Disqus