14. The full evaluation of bids should seek to identify the bid that offers the best combination of financial and non-financial factors. It should include an assessment of bidders' financial and technical competence, including their performance on other government projects. Information to help evaluate bids can be obtained by attempting to cost the bidder's proposed solution, which requires access to the bidder's financial model. The model would show the financial outcome of a particular set of estimated costs, revenues and charges for delivering the service over time.
15. Benchmarking the prices offered by contractors is highly desirable in a competitive situation but is absolutely essential in a single bidder scenario. In the Airwave deal (64th Report, Session 2001-02), when the procurement went down to a single bidder, the contractor recognised that there was a need to change its approach and proposed using a should-cost model. The model would describe the components that make up the system, the contractor would make its own estimate of what it would cost and the Department could check whether it felt the estimates were appropriate.