Lowest Evaluated Cost Calculator

Work out lowest evaluated cost instantly with clear inputs, formula shown and shareable results.

About Lowest Evaluated Cost Calculator

Lowest evaluated cost adds monetised adjustments to the bid price for differences in operating cost, delivery timing and technical deviations, so that non-identical offers become comparable. The adjustment criteria must be published in the tender to be defensible.

Formula

Evaluated cost

Evaluated cost = Bid price + Operating cost adjustment + Delay adjustment + Deviation loading

Worked example

With the default values below, Lowest Evaluated Cost Calculator returns Evaluated cost for comparison of $4,695,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Bid price: 3,800,000
Present value of operating cost difference: 620,000
Cost of quoted delivery delay: 180,000
Loading for technical deviations: 95,000

Results

Evaluated cost for comparison: $4,695,000.00
Bid price as submitted: $3,800,000.00
Total evaluation adjustments: $895,000.00
Adjustments as % of bid price: 23.55%

Step by step

1Values used
2Evaluated cost
3Evaluated cost for comparison= 4,695,000.00
4Bid price as submitted= 3,800,000.00
5Total evaluation adjustments= 895,000.00
6Adjustments as % of bid price= 23.55

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 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.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

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

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Must the adjustment method be disclosed?

Yes, in the tender documents and in monetary terms. Adjustments invented after bids are opened are the most common ground for a procurement challenge.

What adjustments are typical?

Energy consumption over the asset life, spares and maintenance cost, delivery lead time, and quantified performance shortfalls against specification.