Evaluation
Lowest Compliant Bid
An award method selecting the cheapest bid that meets every mandatory requirement.
Under this method, compliance is assessed first and price decides among those that pass. Quality above the stated minimum earns nothing — a bid that exceeds requirements is treated identically to one that just meets them.
This changes bidding strategy fundamentally. On a lowest-compliant competition, effort spent demonstrating excellence is wasted; effort spent verifying compliance and sharpening cost is not. Suppliers who bid the same way on every solicitation tend to over-invest here and under-invest on best-value competitions.
Related terms
- Invitation to TenderA solicitation for a precisely specified requirement, normally awarded to the lowest compliant bid.
- Best ValueAn award method that combines technical merit and price rather than selecting on price alone.
- Mandatory RequirementA condition a bid must satisfy to remain in the competition. Failing even one normally eliminates the bid.
See this term in a real tender
Search current federal opportunities and read a live notice with this definition in mind.
This definition describes general Canadian federal practice and is not legal advice. Always confirm requirements against the official solicitation.