Most Economically Advantageous Tender
The most economically advantageous tender (MEAT), known in Finnish as kokonaistaloudellisesti edullisin tarjous, is the overarching principle for awarding contracts in Finnish and EU public procurement. It means that the contract must be awarded based on the best price-quality ratio, lowest cost, or lowest price.
Definition
The most economically advantageous tender (MEAT) is the principle that contracts must be awarded to the tender offering the best overall value. The contracting authority must choose one of three sub-criteria: best price-quality ratio (considering both price and qualitative factors), lowest cost (using life-cycle costing), or lowest price. The chosen approach and the weighting of criteria must be stated in the procurement documents. For best price-quality ratio, award criteria may include quality, technical merit, environmental characteristics, delivery time, after-sales service, and qualifications of assigned personnel. It is governed by Sections 93-98 of the Public Procurement Act (1397/2016).
Practical Example
A city procures architectural design services using the best price-quality ratio with 70% weight on quality and 30% on price. Quality criteria include design concept (30%), team expertise (20%), and project management approach (20%). The winning tender scores highest overall, even though it is not the cheapest.
Common Mistake
Bidders sometimes focus exclusively on offering the lowest price, even when quality criteria carry more weight. Understanding the weighting of award criteria and tailoring the tender response accordingly is essential for success.
Frequently Asked Questions
Can the contracting authority use lowest price as the sole criterion?
Yes, lowest price is one of the permitted sub-criteria under the MEAT principle. However, for EU-level procurements of services that require significant intellectual input (such as consulting or design), the contracting authority should use the best price-quality ratio rather than lowest price alone.
What is life-cycle costing?
Life-cycle costing evaluates the total cost of a product or service over its entire life cycle, including acquisition costs, operating costs, maintenance costs, and end-of-life costs (such as disposal or recycling). It may also include environmental externalities if they can be monetized.
Must the award criteria weightings be published in advance?
Yes. The contracting authority must state the award criteria and their relative weightings (or at least their order of importance) in the contract notice or the procurement documents. Criteria that are not published in advance cannot be used in the evaluation.
Related Terms
Open Procedure
Learn how the open procedure works in Finnish public procurement. Any supplier can submit a tender without pre-qualification under hankintalaki 1397/2016.
Request for Proposals
Understand the request for proposals (tarjouspyyntö) in Finnish public procurement. Key document that defines requirements and evaluation criteria.
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
Tender Evaluation
Learn about the tender evaluation process in Finnish public procurement. How contracting authorities assess and score tenders under hankintalaki.
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