Percentage to calculate vendors pricing proposal

[momi]

Hi All,

I would like to get your assistance on how to calculate vendors pricing proposal. Meaning, I issued Request for Proposal (RFP) and received different quotations from different vendors. In this case, I need to calculate in terms of percentage, the higher the quotation, the less percentage will be given. This is part of my scoring to conduct assessment before selecting the vendor.

For example, I received 4 different quotations - 1st Quotation = USD 100, 2nd Quotation = USD 200, 3rd Quotation = USD 300, 4th Quotation = USD 400. Assuming all vendors will provide the same quality, definitely I will select the 1st quotation. But how to provide percentage of each quotation (the higher, the lesser percentage)?

 

[momi]

Continue from my earlier question. Even I will select the 1st vendor with a quotation of USD 100, I will not give the vendor 100% scoring. My budget is USD 80 thus, the percentage should be less than 100% but higher than other vendors that provide higher quotations.

 

[Joe4]

It is not quite clear to me how to arrive at these "numbers" you are looking for. Based on the little information give, it seems to be quite arbitrary, and you could come up with a variety of different answers. But perhaps that is because you have not described the method for arriving at your desired values fully, or what limitations should be in place.

It might be more beneficial if you could show us, based on your example, exactly what your expected results should look like, and explain exactly how you arrive at those values.

MrExcel has a tool called “XL2BB” that lets you post samples of your data that will allow us to copy/paste it to our Excel spreadsheets, so we can work with the same copy of data that you are. Instructions on using this tool can be found here: XL2BB Add-in

Note that there is also a "Test Here” forum on this board. This is a place where you can test using this tool (or any other posting techniques that you want to test) before trying to use those tools in your actual posts.

 

[momi]

Hi Joe4, thanks for your reply. I will check the tool mentioned by you, the XL2BB. By the way, I think the formula should be:

(Budget / Value of the financial proposal) * percentage required = (USD 80 / USD 100) * 40 = 32%
(USD 80 / USD 200) * 40 = 16%
(USD 80 / USD 300) * 40 = 10.7%
(USD 80 / USD 400) * 40 = 8%

 

[Joe4]

Where exactly does the 40 come from?

 

[momi]

The 40 represents 40% of financial assessment. The remaining 60% is for technical assessment. This is purely assessment (financial and technical) for selecting vendors and giving their scoring based on percentage.

 

[Joe4]

Based on your description/formulas in post 4, it looks to me like you already worked out what the formulas should be.
So what part do you still need help with?

If it is putting it all in Excel formulas, please post how all this data will appear in Excel.
If we can see which cells all this data is in, we can come up with the formulas to match what you posted in post 4.