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General

Most Economically Advantageous Tender

Bid with the best price-quality ratio that receives the contract award — not necessarily the cheapest.

What is the Most Economically Advantageous Tender?

The most economically advantageous tender (MEAT) is the bid in a procurement procedure that offers the best price-quality ratio considering all award criteria. It is a core principle of German and European procurement law: the contract is awarded not to the cheapest bid, but to the most economically advantageous one.

Legal Framework

  • § 127(1) GWB: "The contract shall be awarded to the most economically advantageous tender."
  • § 58 VgV: Award — determining the most economically advantageous tender
  • Art. 67 Directive 2014/24/EU: Award criteria

Cheapest vs. Most Economical

FeatureCheapest BidMost Economical Bid
Decision basisPrice onlyPrice AND quality
Award criteria100% pricePrice + qualitative criteria
ResultLowest price winsBest value for money wins

Award Criteria

Price criteria: Bid price, life-cycle costs (TCO), operating costs, maintenance costs.

Qualitative criteria: Quality of service/product, technical value, sustainability, personnel qualifications, project management concept, delivery conditions.

Determining the Most Economical Bid

Example evaluation for an IT service:

CriterionWeightBidder ABidder BBidder C
Price50%8 pts (€420k)10 pts (€380k)6 pts (€490k)
Quality concept25%9 pts6 pts10 pts
Personnel15%8 pts7 pts9 pts
Project plan10%7 pts8 pts8 pts
Total8.158.057.90

Result: Bidder A wins despite Bidder B being cheaper.

Life-Cycle Costs

A modern approach under § 59 VgV considers: acquisition costs, usage costs, maintenance costs, disposal costs, and external costs (CO₂ emissions).

Sustainability Criteria

Modern procurement increasingly considers energy efficiency, carbon footprint, social standards in supply chains, and recyclability.

Importance for Bidders

  1. Price is not everything — invest in a strong quality concept
  2. Analyze the weighting — focus on highest-weighted criteria
  3. Personnel as differentiator — qualified staff can make the difference
  4. Use life-cycle costs — higher acquisition costs may be offset by lower operating costs

Patterno hilft

Patterno automatically extracts award criteria and their weighting from tender documents. You instantly see whether price or quality is decisive — and can target your bid strategy accordingly.

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