NON-PRICE CRITERIA IN PUBLIC PROCUREMENT: METHODOLOGICAL FOUNDATIONS FOR THEIR DESIGN AND THE ASSESSMENT OF ADDED VALUE

Abstract

The relevance of the study stems from the need to shift public procurement away from a predominant focus on the lowest price towards assessing the relationship between price, quality, and the results achieved through the use of public funds. The article aims to substantiate the methodological foundations for formulating non-price criteria and evaluating the realization of the added benefit declared by a tenderer in its bid. The study employs systems and comparative analysis, generalization, formalization, and multicriteria evaluation. The distinctions between technical requirements, qualification criteria, and non-price award criteria are clarified. It is substantiated that a non-price criterion should reflect an additional characteristic of the subject matter of procurement, be directly linked to the contracting authority’s need, produce a measurable result, have an appropriate verification method, and be assigned a weight commensurate with the expected benefit. A methodological approach has been refined by establishing an end-to-end relationship between the contracting authority’s need, the additional characteristic, the expected benefit, its measurement indicator, the criterion weight, supporting evidence, the contractual obligation, and the result achieved. It is proposed to compare the baseline, declared, contractual, and actual values of the relevant indicator. For quantitative assessment, target-based normalization is adapted and an added-benefit realization coefficient is defined. It can be applied to characteristics whose improvement involves either an increase or a decrease in their values, as well as to nonlinear, binary, and ordinal criteria. For a comprehensive assessment, an Added Benefit Realization Index is substantiated, taking into account the relative weights of the criteria. The scientific novelty lies in extending the evaluation of non-price criteria to the contract-performance stage and ensuring the traceability of declared advantages throughout the procurement cycle. The proposed approach can prevent a supplier from obtaining an evaluation advantage without delivering the corresponding characteristic, strengthen contract-performance monitoring, and improve the effectiveness of budget expenditure. The findings develop methodological support for the public procurement system as a mechanism for the efficient execution of state and local budgets.