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Tip
titleCommunicating VFM

360 has two methods for graphically representing value for money:

  1. The Effectiveness vs Price scatter graph shows best VFM in the bottom-right quadrant
  2. The Effectiveness bar chart shows how bids have been rated with raw scores, risk assessed scores, and a final assessment (in which price has been considered)

For both of these charts, a comparison price is needed.  The comparison price is commonly a tendered price but it may be calculated using any appropriate method.

...

  1. The request is marked Cost Associated
  2. The Automatic algorithm is selected
  3. Each tenderer must enter the price on a Price page of the questionnaire
  4. The evaluation team scores each weighted question to calculate Raw Score for each response
  5. Each evaluation team member's risk assessment is applied to calculate a Risk Assessed Score for each response
  6. Each provider has VFM Points calculated using the formula:
    Risk Assessed Score divided by the Price multiplied by the Median Price
  7. A Perfect VFM Points score is calculated as either:
    1. 100% (for the Risk Assessed Score) divided by the Lowest Price Tendered multiplied by the Median Price
    2. 100% (for the Risk Assessed Score) divided by the Budget multiplied by the Median Price
  8. Each provider has a VFM Percentage calculated using the formula:
    VFM Points divided by the Perfect VFM Points

...

  1. The request is marked Cost Associated
  2. The Manual algorithm is selected
  3. A Price Percentage is specified (e.g. 50% if having a low price is just as important as having high quality)
  4. Each tenderer must enter the price on a Price page of the questionnaire
  5. The evaluation team scores each weighted question to calculate Raw Score for each response
  6. Each evaluation team member's risk assessment is applied to calculate a Risk Assessed Score for each response
  7. A ratio is calculated as:
    Risk Assessed Weighting vs Price Weighting
  8. Each providers Price Score is calculated as either:
    1. Lowest Price Tendered divided by the Tendered Price
    2. Budget divided by the Tendered Price
  9. Using the ratio above, each provider has a VFM Percentage calculated

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