Bid Comparison Matrix Calculator

Work out bid comparison matrix instantly with clear inputs, formula shown and shareable results.

About Bid Comparison Matrix Calculator

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.

Formulas

Bid spread

Spread % = (Highest bid - Lowest bid) / Lowest bid x 100

Variance to budget

Variance % = (Lowest bid - Budget estimate) / Budget estimate x 100

Worked example

With the default values below, Bid Comparison Matrix Calculator returns Lowest bid of $3,950,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Bid 1 price: 4,200,000
Bid 2 price: 3,950,000
Bid 3 price: 4,650,000
Budget estimate: 4,400,000

Results

Lowest bid: $3,950,000.00
Spread between lowest and highest bid: 17.72%
Average bid: $4,266,666.67
Lowest bid against budget: -10.23%

Step by step

1Values used
2Bid spread
3Variance to budget
4Lowest bid= 3,950,000.00
5Spread between lowest and highest bid= 17.72
6Average bid= 4,266,666.67
7Lowest bid against budget= -10.23

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What does a very wide spread indicate?

Ambiguous specification, differing assumptions on risk transfer, or a bidder who has misunderstood the requirement. Investigate before awarding.

Should I always award to the lowest bid?

Only on a lowest-price basis for genuinely identical offers. Otherwise use lowest evaluated cost, which loads non-price differences into the comparison.