Procurement Glossary
Mandatory and optional criteria: Definition and application in procurement
November 19, 2025
Mandatory and optional criteria form the foundation of every structured supplier selection and offer evaluation in Procurement. This systematic differentiation between mandatory and desirable requirements enables objective and comprehensible decision-making. Find out below how to define and apply these criteria and integrate them optimally into your procurement processes.
Key Facts
- Mandatory criteria are indispensable minimum requirements that must be met in order to participate in the award procedure
- Optional criteria are used to differentiate between qualified providers and are included in the evaluation matrix
- The clear separation reduces the risk of legal disputes and increases the transparency of the selection process
- Both types of criteria must be clearly defined and communicated during the tendering phase
- A good balance between mandatory and optional criteria optimizes both quality and competitive intensity
Contents
Definition: Must and can criteria in procurement
Mandatory and optional criteria structure the requirements in procurement processes according to their binding nature and enable a systematic supplier evaluation.
Basic characteristics
Mandatory criteria define indispensable minimum requirements which, if not met, lead to automatic exclusion. They include legal requirements, technical specifications and quality standards.
- Binary evaluation (fulfilled/not fulfilled)
- No possibility of compensation through other benefits
- Legally enforceable requirements
Must versus can criteria
Optional criteria make it possible to differentiate between qualified providers and are weighted in the evaluation matrix. They evaluate additional services, innovations and added value.
Importance in Procurement
Systematic application creates legal certainty in tendering procedures and enables an objective review of tenders. At the same time, competition is promoted without compromising quality standards.
Methods and procedures
The structured development and application of mandatory and optional criteria follows proven methods that ensure objectivity and legal certainty.
Criteria development and categorization
This is derived from a needs analysis, market analysis and legal framework conditions. A systematic catalog of requirements structures all requirements according to priority and binding nature.
- Stakeholder workshops to determine requirements
- Market analysis for feasibility check
- Legal validation of the mandatory criteria
Weighting and evaluation logic
Optional criteria are given percentage weightings according to their strategic importance. The scoring models define evaluation scales and points allocation for objective comparability.
Integration in tender documents
Transparent communication in the specifications prevents misunderstandings and queries. Clear delimitation and evaluation standards create planning security for bidders.
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Important KPIs for mandatory and optional criteria
Measurable key figures evaluate the effectiveness of the criteria structure and continuously optimize future tender designs.
Intensity of competition and market response
The number of qualified bids per tender shows the marketability of the mandatory criteria. An exclusion rate of over 70% indicates that the requirements are too restrictive.
- Average number of offers per tender
- Exclusion rate due to unfulfilled mandatory criteria
- Demand rate for criteria interpretation
Valuation quality and consistency
The standard deviation in can-criteria assessments between different assessors measures objectivity. Small deviations confirm clear evaluation standards and consistent application.
Procurement result and target achievement
The degree of fulfillment of strategic procurement objectives by the selected suppliers validates the criteria structure. Award criteria should bring about measurable improvements in defined performance areas.
Risks, dependencies and countermeasures
Unbalanced or unclear criteria structures can lead to legal problems, restricted competition and suboptimal procurement results.
Legal risks and compliance
Overly restrictive mandatory criteria can unduly restrict competition and lead to bidder complaints. Unclear wording creates scope for interpretation and legal challenges.
- Regular market analyses for feasibility checks
- Legal validation of all mandatory criteria
- Documentation of the criteria derivation
Distortion of competition and market exclusion
Overly specific requirements can rule out innovative solutions or favor certain providers. The balance between quality standards and market access requires continuous adjustment.
Valuation inconsistencies
Subjective interpretation of optional criteria jeopardizes the objectivity of the award procedure. Standardized evaluation grids and training for the evaluation teams minimize these risks considerably.
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Practical example
An automotive manufacturer puts IT services out to tender and defines mandatory criteria: ISO 27001 certification, 24/7 support and GDPR compliance. The following are evaluated as optional criteria: Industry experience (25%), degree of innovation of the solution (30%), price-performance ratio (25%) and sustainability (20%). Of twelve bidders, eight fulfill the mandatory criteria and undergo the detailed evaluation of the optional criteria.
- Clear separation prevents exclusion of qualified providers
- Weighting reflects strategic priorities
- Transparent communication reduces queries by 60%
Current developments and effects
Digitalization and sustainability are significantly shaping the further development of criteria structures in modern procurement processes.
Digital transformation of criteria evaluation
AI-supported systems automate the evaluation of mandatory criteria and support the weighting of optional criteria. Electronic tendering platforms integrate evaluation logic directly into the tendering process.
Sustainability criteria as a new dimension
ESG requirements are developing from optional to mandatory criteria, especially for public sector clients. Supply chain transparency and carbon footprinting are increasingly becoming indispensable minimum requirements.
- Certification certificates as mandatory criteria
- Sustainability innovations as optional criteria
- Compliance documentation is standardized
Agile criteria adjustment
Dynamic markets require flexible adaptation mechanisms for criteria structures. Framework agreements enable iterative criteria development over several award rounds.
Conclusion
Mandatory and optional criteria form the backbone of professional procurement processes and ensure both legal certainty and optimal results. The clear separation between indispensable minimum requirements and differentiating evaluation criteria creates transparency for all parties involved. Successful application requires careful preparation, balanced structuring and consistent implementation. In an increasingly digitalized and sustainability-oriented procurement landscape, these tools are becoming even more important for strategic purchasing decisions.
FAQ
What is the difference between mandatory and optional criteria?
Mandatory criteria are indispensable minimum requirements which, if not met, lead to immediate exclusion. Optional criteria serve to differentiate between qualified providers and are weighted in the overall evaluation. While mandatory criteria are evaluated in binary terms, optional criteria allow for a nuanced scoring system.
How many mandatory criteria should be defined?
The number should be kept to the necessary minimum so as not to restrict competition unnecessarily. Typically, mandatory criteria include 5-10 essential requirements such as certifications, legal requirements and basic technical specifications. Each additional mandatory criterion potentially reduces the number of qualified bidders.
Can mandatory criteria be changed during the award procedure?
Generally no, as this jeopardizes the equal treatment of bidders and causes legal problems. Changes are only possible in exceptional cases if all bidders are informed equally and given sufficient time to adapt. Careful preparation and validation before the tender is published is better.
How are optional criteria optimally weighted?
The weighting should reflect the strategic procurement objectives and be agreed with relevant stakeholders. No individual weighting should exceed 40% to ensure balanced assessments. The sum of all weightings must add up to 100% and the weighting logic should be transparently documented and communicated.
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