Eliminate or set aside any bids that came in after the stated deadline, or are time-stamped beyond the deadline. Department policy will call for elimination or setting aside; check with the department, setting forth the request as to how to proceed with late bidders.
Categorize each bid by its commodity or trade. Place each in its own folder by that category.
Once they are organized and categorized, place the respective scoring criteria inside of each folder, along with product pricing information. The department which ordered the bid will usually have its own additional set of criteria for evaluating bids, along with pricing information. Each folder should then have trade-specific bids inside and evaluation criteria with which to conduct the evaluation.
One folder at a time, review the pricing information first. Weed out, eliminate or set aside any bids that are above a 10 percent or 20 percent ceiling threshold. For example, if the Request for Proposal called for a ceiling of $50,000 dollars, any that exceed that amount by $5,000 to $10,000 should be placed in a separate pile or eliminated altogether if there are so many that you can afford to eliminate.
Check the merits of each bid to ensure all required labor and materials were included that are necessary to perform the named job. For example, if insulating three buildings was the bid, be sure that enough materials are named to insulate the buildings of the named size and scope. Set aside bids that are missing information and materials, or are not reasonably priced. Set those bids aside for later follow-up.
Review all conditions necessary for project completion in each category for every job, such as overtime, licensing costs, permits or security concerns. If any are missing, set aside or flag that area for clarification later and pricing consideration. Though not to a significant extent, this missing information will usually increase the cost.
Review the bidder's credentials and business merits. Consider how long they have been in business, who former clients are and current projects. Gather up references and call them. Conduct general Internet searches using the company name to check on former work and positive or negative remarks regarding their work. Consider the number of employees and degree to which the services are needed to determine if they capable of fulfilling all job requirements.
Compare all bids with all named resources to properly compare pricing. A good bid will align adequate resources with the requirements of the job. In addition, the pricing will fall within the expectations of the Request for Proposal. The lowest bid doesn't necessarily mean it is the best bid, nor does the highest ensure quality. Review each area carefully and leverage it with the needs and expectations of the work that needs to be performed or product that must be purchased.