What is QCBS? A guide to tender evaluation methods

How a tender is evaluated should shape how you bid. Some methods reward the lowest price; others reward quality. Here are the main evaluation methods, with a worked QCBS example.

QCBS — Quality and Cost Based Selection

QCBS is the most common method for consultancy and solution-oriented RFPs. Technical and financial proposals are each scored, then combined using pre-declared weights — often around 70–80% quality and 20–30% cost. Only bidders who clear a minimum technical qualifying mark proceed to financial evaluation.

The combined score is usually calculated like this:

• Technical score ( St): your technical marks out of 100.
• Financial score (Sf): the lowest price gets 100; others get 100 × (lowest price ÷ your price).
• Final score: St × (technical weight) + Sf × (financial weight).

Worked example (70/30): Your technical score is 90 and your price is ₹110, while the lowest price among qualified bidders is ₹100. Your financial score is 100 × (100 ÷ 110) = 90.9. Your final score is (90 × 0.70) + (90.9 × 0.30) = 63.0 + 27.3 = 90.3. The highest combined score wins — so a strong technical proposal can beat a cheaper but weaker one.

QBS — Quality Based Selection

Under QBS, selection is driven by quality; price is negotiated only with the top-ranked bidder. It’s used for complex, high-stakes assignments where getting the approach right matters far more than shaving cost — feasibility studies, policy design, specialised engineering.

LCS — Least Cost Selection

In LCS, all bidders must clear a technical threshold, and among those who do, the lowest price wins. It suits standard, routine assignments where quality above the minimum adds little value — think a standard audit or a well-defined survey.

FBS — Fixed Budget Selection

With FBS, the budget is disclosed and fixed. Bidders must stay within it, and the best technical proposal within the budget wins. Here your job is to maximise value inside a known ceiling, not to compete on price.

L1 — Lowest Bidder (least cost)

For works, goods and standard services, award often goes to L1 — the lowest compliant priced bid — after a pass/fail technical check. Watch for abnormally low bids: unusually low prices may trigger scrutiny and a demand for justification before award.

How to use this when bidding

• Read the weights first. An 80/20 QCBS rewards quality; a 60/40 makes price decisive.
• Clear the qualifying mark. In QCBS/LCS, a great price is worthless if you fail the technical threshold.
• For L1/RFQ, concentrate on a lean, compliant, competitive price.
• For QBS/QCBS, invest in methodology, team CVs and a work plan tailored to the exact scope.

Always confirm the exact evaluation formula and weights in the tender document — methods and thresholds vary by buyer and by assignment.