Quality and Cost-Based Selection (QCBS)

Quality and Cost-Based Selection (QCBS) is an evaluation method that picks the winner by combining a bidder's technical score and financial (price) score using a fixed, pre-declared weighting. It is the standard method for consultancy procurement in India.

What is Quality and Cost-Based Selection (QCBS)?

QCBS is used mainly for consultancy assignments, where the quality of the work matters as much as the price. Instead of simply choosing the lowest bidder, the procuring entity scores each proposal on two things: technical quality and cost. These two scores are then combined using a weighting that is announced in advance, usually 70:30 or 80:20 in favour of technical quality.

For example, in a 70:30 QCBS, the total score is calculated as (Technical Score x 0.70) + (Financial Score x 0.30). The bidder with the highest combined score wins. This is different from a standard works or supply tender, where the lowest priced compliant bid (L1) usually wins. QCBS covers a small share of total procurement by value, but it is the dominant method for assignments like detailed project reports (DPRs) and large advisory work, where technical capability cannot be ignored.

Why QCBS matters for bidders

Under QCBS, your technical proposal is scored, not just checked for presence. A strong methodology, qualified team, and relevant experience can let you win even when you are not the cheapest. Reading the nit and the RFP carefully tells you the exact weighting and scoring framework, so you can balance how much to invest in quality versus how aggressively to price.

Example

A state public works department invites consultants to prepare a DPR for a road project. The RFP states 80:20 QCBS. Firm A scores 90 on technical and quotes a higher fee; Firm B scores 75 on technical with a lower fee. After applying the weights, Firm A's combined score beats Firm B's, so Firm A wins despite the higher price. This is why a reverse-auction style price race alone would not have produced the same result.

Frequently Asked Questions

How is the QCBS final score calculated?

The procuring entity assigns a technical score and a financial score to each qualifying proposal. These are combined using the pre-declared weighting, commonly 70:30 or 80:20 with technical given the larger share. The highest combined score wins.

Is QCBS the same as L1?

No. L1 selection awards the contract to the lowest priced compliant bidder, with quality only checked for adequacy. QCBS scores technical quality and price together, so a more expensive but technically stronger bid can still win. Our guide on tender evaluation explains the difference in detail.

What kind of tenders use QCBS?

QCBS is used mainly for consultancy procurement, such as detailed project report preparation, design, and advisory assignments. These are usually issued through an RFP rather than a standard works tender. Sometimes an eoi is floated first to shortlist firms before the RFP stage.

What weighting is most common in QCBS?

The two common splits are 70:30 and 80:20, in both cases favouring technical quality over cost. The exact ratio is decided by the procuring entity and stated in the RFP, so always confirm the weighting before deciding your pricing strategy.