Award Criteria: Complete LCSP Guide

Award criteria in public contracts have radically transformed the way administrations select their suppliers. Far from being just another bureaucratic formality, they are the tool that defines the success of a public purchase.

Since the entry into force of Law 9/2017 on Public Sector Contracts (LCSP), winning a tender no longer depends exclusively on offering the lowest price. The paradigm has shifted towards the best price-quality ratio, forcing both contracting authorities and bidding companies to master concepts such as life-cycle costs, social criteria, or technical quality.

Regulatory Framework of Award Criteria

The current regulation of LCSP award criteria originates from European Directives 2014/24/EU and 2014/25/EU. These standards, transposed into Spanish law through Law 9/2017, establish that the award must be based on the most economically advantageous tender.

This regulatory change represented a key evolution regarding the previous text (TRLCSP 2011), prioritizing quality and sustainability over purely economic savings.

What Are Award Criteria?

Award criteria are the objective and subjective parameters defined in the specifications that allow evaluating offers to identify the one presenting the best cost-effectiveness ratio.

According to Article 145.1 of the LCSP, the award "shall ordinarily be made using a plurality of award criteria based on the principle of best price-quality ratio". This implies evaluating not only how much the service costs, but how it will be executed.

Important Note:

Do not confuse award criteria (measure the quality of the offer) with solvency criteria (measure the company's capacity to contract). If a company lacks solvency, it cannot be evaluated.

Types of Criteria: Beyond Price

The regulations classify criteria into two main blocks to ensure a comprehensive evaluation:

1. Economic Criteria

Although price is king, the LCSP introduces advanced profitability concepts:

• Price: The direct economic amount of the offer.
• Life-cycle cost (Art. 148 LCSP): Considers all costs throughout the product's life, from acquisition to recycling or disposal, including maintenance costs and energy consumption.

2. Qualitative Criteria

Allow valuing technical excellence. According to Article 145.2 of the LCSP, they may include:

• Technical quality: Technical value, aesthetic characteristics, accessibility, and universal design.
• Social aspects (Art. 146): Labor insertion of people with disabilities, gender equality plans, employment stability, or promotion of fair trade.
• Environmental aspects: Reduction of emissions, energy efficiency, or use of renewables.
• Innovation: Solutions that provide new technical or functional added value.

Limitations on Weighting

The law establishes restrictions to ensure objectivity. For example, in the simplified open procedure, criteria evaluable through value judgment cannot exceed 25% of the total (Art. 159.1.b LCSP), while in its 'summary' or 'super simplified' modality (Art. 159.6), no subjective criterion is allowed: 100% must be through formulas.

Practical Example: Breakdown of Criteria in a Real Tender

To better understand how to score offers in public contracts, let's look at an example of an IT maintenance service contract with a budget of €250,000:

Economic Criteria (60%):

• Offered price: 50 points (Mathematical formula).
• Maintenance cost years 2-5: 10 points (Objective calculation).

Although price is key, remember that in contracts for intellectual services (such as architecture or engineering), quality-related criteria must represent at least 51% of the total score (Art. 145.4 LCSP).

Qualitative Criteria (40%):

• Response time to critical incidents: 15 points (Technical improvement).
• Experience of the assigned technical team: 10 points (Team quality).
• Continuous training plan: 8 points (Value judgment on the report).
• Social criteria (labor insertion): 7 points (Objective commitment).

This balance demonstrates that, although price is important, a poor technical or social proposal can lose the contract.

Evaluation Methods: Formulas vs. Value Judgments

To guarantee the transparency required by the Public Sector Contracting Platform, criteria are divided according to their scoring method:

Criteria Evaluable Through Formulas (Objective)

Their scoring is automatic upon applying a mathematical rule. They are indisputable.

• Examples: Price, execution deadline, warranty extension.

Criteria Dependent on a Value Judgment (Subjective)

Require the assessment of a technician or committee of experts.

• Examples: Quality of the technical report, work methodology, service organization.

For Contracting Authorities:

Defining this distinction correctly is vital to avoid appeals before the Central Administrative Tribunal for Contractual Appeals (TACRC).

Tip: If you have doubts about how to legally weigh subjective criteria against objective ones according to the LCSP, you can consult the Tendios LCSP Assistant. This AI tool resolves your regulatory doubts in seconds, citing precise BOE articles to armor your specifications.

The Challenge for Bidding Companies

Analyzing award criteria for hundreds of tenders manually is inefficient. Often, these details are "buried" in 50-page specifications with complex legal language. Understanding whether the tender prioritizes price or quality is critical to deciding the Go/No-Go.

For Bidding Companies:

Time is money. Instead of manually reading each PCAP, use the Tendios AI Chatbot:

1. Upload the specifications to the platform.
2. Ask: "What are the award criteria and their exact weighting?".
3. Get a structured summary in seconds to decide your winning strategy.

Frequently Asked Questions (FAQ)

What minimum percentage must the price have in award criteria?

The LCSP does not establish a fixed minimum percentage for price, except in specific procedures where price is the sole criterion. However, the general rule is to seek the "best price-quality ratio", so a balance is recommended that does not turn the tender into a pure auction, except in very standardized supplies.

Can criteria be changed once the tender is published?

No. According to the principle of transparency and equal treatment, criteria defined in the specifications and published in the tender announcement are unalterable during the process. Any substantial change would force cancellation and retendering.

What happens if a criterion is not linked to the object of the contract?

Article 145.5 of the LCSP requires that all criteria be linked to the object of the contract. If a criterion evaluates aspects unrelated to the provision (e.g., general company policy not related to the contract), it can be challenged and annulled by administrative courts.

When should automatic criteria vs. value judgments be used?

In open or restricted procedures of Public Administrations, if subjective criteria (value judgments) have more weight than objective ones, the evaluation is required to be carried out by an independent committee of experts or a specialized technical body (Art. 146.2.a LCSP).

Can social criteria be mandatory?

Yes. Article 1.3 of the LCSP establishes the transversal obligation to include social and environmental criteria in public procurement, provided they are linked to the object of the contract.

Conclusion

Mastering award criteria in public contracts is essential to successfully navigate the B2G ecosystem. It is no longer enough to be the cheapest; you must be the best, the most sustainable, and the most efficient. 

Current technology allows automating the analysis and definition of these criteria, minimizing the risk of human error. For complex doctrinal queries, it is always advisable to consult the reports of the State Public Procurement Consultative Board.

Do you want to speed up your tender management? Discover how Tendios AI transforms specification reading and regulatory validation.