Since 2016, the World Bank’s Procurement Framework has encouraged the use of Rated Criteria -or non-price factors- to evaluate quality, sustainability, and innovative aspects of bids in decision making. This has enabled borrowers to adopt a more strategic approach to procurement, including the use of evaluation criteria that prioritizes fit-for-purpose solutions rather than the lowest evaluated price.
Effective September 1, 2023, the World Bank will require the use of Rated Criteria as the default approach for most international procurements1.
There are several reasons behind this decision. Above all, using Rated Criteria more widely will increase borrowers’ flexibility to procure works, goods and non-consulting services best suited to their specific situation, and provide a more suitable approach.
It will also increase willingness of the best suppliers to bid and participate in Bank-financed projects—with the knowledge that their added value will be part of the evaluation, thereby increasing options, global competition, and likelihood for effective market solutions.
Additional advantages of using Rated Criteria in international procurement include:
- A greater use of this approach will further contribute to successful contract outcomes and effective risk management, including managing of environmental and social issues, supply chain disruption, cybersecurity, and global health emergencies.
- It will also contribute to combating bid rigging and reducing the risk of collusion in procurement processes.
- Combined with price and life cycle cost formulas, Rated Criteria provides a truer assessment of value that focuses on quality, sustainability, and other key criteria.
The World Bank will continue to provide training and hands-on support to help ease the transition to this new approach, and enhance the strategic role of procurement as a key public policy and management tool to maximize scarce resources, deliver better value to beneficiaries and address today’s global challenges.
Please visit this page regularly for the most up-to-date Rated Criteria-related content.