Proportionality in Selection Criteria: Applying the Guide to Proportionality

Introduction

Proportional selection criteria are a cornerstone of fair procurement. The Guide to Proportionality prescribes that requirements must be reasonably proportionate to the nature and size of the contract.

Legal basis

The proportionality principle is established in Article 1.10 of the Procurement Act 2012 and detailed in the Guide to Proportionality. The "comply or explain" principle applies.

Suitability requirements

Financial standing

• Maximum turnover requirement: 300% of annual contract value
• Insurance requirements proportionate to contract risks
• Bank guarantee: maximum 5% of contract value

Technical capability

• Reference size: maximum 60% of contract value per reference
• Number: typically 2-3
• Period: maximum 3 years for services/supplies, 5 years for works

Professional qualifications

• Only when legally required or substantively necessary

Selection criteria in restricted procedures

• Minimum 5 candidates to invite
• Criteria must be objective, measurable, and related to the contract
• Good criteria: relevance of references, specialist knowledge
• Bad criteria: total revenue, number of employees

Common mistakes

1. Turnover too high (above 300% norm)
2. References too large (above 60% norm)
3. Combination ban without justification
4. Stacking requirements that individually are proportional but collectively exclude SMEs