Work out bid comparison matrix instantly with clear inputs, formula shown and shareable results.
The spread between bids is diagnostic. A tight spread suggests a well-specified requirement and a competitive market; a spread above about 25% usually means bidders interpreted the scope differently and clarification is needed before award.
Bid spread
Spread % = (Highest bid - Lowest bid) / Lowest bid x 100
Variance to budget
Variance % = (Lowest bid - Budget estimate) / Budget estimate x 100
Ambiguous specification, differing assumptions on risk transfer, or a bidder who has misunderstood the requirement. Investigate before awarding.
Only on a lowest-price basis for genuinely identical offers. Otherwise use lowest evaluated cost, which loads non-price differences into the comparison.