Procurement Glossary
Award criteria: Definition, application and strategic importance in Procurement
November 19, 2025
Award criteria form the basis for objective and legally compliant award decisions in professional Procurement. They define the evaluation criteria according to which bids are systematically compared and the most economical bidder is determined. Find out below what award criteria are, which methods are used and how you can use them strategically for successful procurement processes.
Key Facts
- Award criteria are legally binding evaluation criteria for the evaluation of tenders in award procedures
- They must already be communicated and weighted transparently in the invitation to tender
- Typical criteria include price, quality, delivery time, service and sustainability
- A structured evaluation matrix makes it possible to objectively compare different offers
- Legally compliant documentation of all evaluation steps is required for the award file
Contents
Definition: Award criteria
Award criteria are the evaluation criteria defined in the award procedure, according to which bids received are systematically evaluated and compared with each other.
Essential characteristics of award criteria
Award criteria must be measurable, objectively comprehensible and known before the tender is submitted. They form the basis for a transparent and legally compliant award decision.
- Clear definition and weighting of all evaluation factors
- Objective measurability through quantitative or qualitative indicators
- Legally compliant design in accordance with public procurement law
- Transparent communication with all bidders
Award criteria vs. suitability criteria
While suitability criteria examine the basic suitability of bidders, award criteria evaluate the specific content of the bid. This distinction is essential for legally compliant award procedures.
Importance of award criteria in Procurement
Professional award criteria enable purchasing organizations to identify the most cost-effective offer and at the same time meet legal requirements. They create transparency in the tendering process and reduce the risk of bidder protests.
Methods and procedures
The systematic development and application of award criteria requires structured methods and proven procedures for objective tender evaluations.
Development of a scoring matrix
An evaluation matrix structures the evaluation with clear criteria and weightings. It enables a comprehensible allocation of points for each evaluation aspect.
- Definition of main and sub-criteria with percentage weighting
- Definition of rating scales (e.g. 1-10 points)
- Documentation of the evaluation logic for each criterion
Scoring models for quantitative evaluation
Modern scoring models enable the mathematical linking of different assessment dimensions. They create objectivity through standardized calculation methods.
Qualitative valuation methods
Structured qualitative assessment procedures are used for non-quantifiable aspects such as innovative strength or service quality. These are based on defined assessment levels and comprehensible arguments.
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Important KPIs for award criteria
The effectiveness of award criteria can be measured and continuously optimized using specific key figures.
Award quality and legal certainty
The number of successful bidder protests and award procedures provides information on the quality of the award criteria applied. A low protest rate indicates legally sound criteria.
- Number of bidder complaints per 100 award procedures
- Success rate for legal challenges
- Average duration of procedure until award of contract
Bidder participation and market acceptance
The number of bids received per tender reflects the market acceptance of the selected award criteria. Criteria that are too complex or unclear can deter potential bidders.
Economic efficiency of the award decisions
The long-term performance of the contracted suppliers shows whether the award criteria have actually led to the selection of the best suppliers. Award decisions should prove themselves in practice.
Risks, dependencies and countermeasures
The application of award criteria entails various risks that can be minimized through systematic risk management and preventive measures.
Legal risks and compliance
Unclear or discriminatory award criteria can lead to costly award procedures and complaints from bidders. A legally compliant design is therefore essential.
- Regular training on current changes to public procurement law
- Legal review of critical tender documents
- Documentation of all valuation decisions
Subjectivity in the evaluation
Insufficiently defined evaluation criteria can lead to subjective decisions and jeopardize the objectivity of the award procedure. Clear evaluation standards and the multiple-eye principle counteract this.
Complexity vs. practicability
Excessively complex award criteria can impair the feasibility of award procedures and deter potential bidders. A balance between depth of detail and manageability is required.
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Practical example
An industrial company develops award criteria for the procurement of IT services. The evaluation matrix weights price (40%), technical quality (30%), service quality (20%) and sustainability (10%). Reference projects, certifications and degree of innovation are used for the technical evaluation. Service quality is assessed on the basis of SLA commitments and response times. Sustainability criteria include CO2 balance and social standards. This structured approach leads to an objective tender evaluation and a legally compliant award decision.
- Transparent communication of all criteria in the tender
- Standardized evaluation forms for all evaluators
- Documentation of the individual assessments for the award file
Current developments and effects
The design of award criteria is subject to continuous change due to new legal requirements, technological developments and changing market conditions.
Sustainability as a new award criterion
Environmental and social criteria are becoming increasingly important in procurement procedures. Companies are integrating carbon footprints, supply chain transparency and social standards as evaluation-relevant factors.
- Integration of ESG criteria into the bid evaluation
- Evaluation of sustainability certifications
- Consideration of total cost of ownership
Digitization of the evaluation processes
AI-supported systems are increasingly automating tender evaluation and increasing objectivity. Electronic tendering platforms enable standardized evaluation workflows.
Agile award criteria for complex procurements
In the case of innovative or complex procurement objects, flexible evaluation approaches are developing that enable iterative adjustments during the award process without jeopardizing legal certainty.
Conclusion
Award criteria are the central instrument for objective and legally compliant award decisions in professional Procurement. Their systematic development and consistent application create transparency, reduce legal risks and lead to economically optimal procurement results. The increasing integration of sustainability criteria and digital evaluation tools opens up new possibilities for a holistic supplier evaluation. Successful purchasing organizations therefore continuously invest in the further development of their award criteria and evaluation methods.
FAQ
What are the most important award criteria in Procurement?
The most important award criteria typically include price, quality, delivery time, service and, increasingly, sustainability aspects. The specific weighting depends on the procurement object and the strategic objectives. A balanced mix of hard and soft factors enables a holistic bid evaluation.
How are award criteria formulated in a legally compliant manner?
Legally compliant award criteria must be objectively measurable, non-discriminatory and fully defined in the invitation to tender. They may not be changed retrospectively and must give all bidders equal opportunities. A legal review prior to publication is recommended.
How important should price and quality be?
The optimal weighting between price and quality depends on the procurement strategy. For standard products, the price can account for 60-80%, for complex services often only 30-50%. Quality criteria become more important for critical or innovative procurements and should be weighted accordingly.
How do you document the bid evaluation correctly?
Correct documentation includes the complete award file with all evaluation forms, individual justifications and calculations. Each evaluation decision must be comprehensibly justified and signed by the evaluators. The documentation serves as proof of the objectivity of the award procedure.
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