How to Submit a Technical and Financial Proposal

Many Sri Lankan tenders, especially for consultancy, IT systems, design-and-build projects and complex services, ask bidders to submit a technical and financial proposal rather than a single priced bid. The idea is simple: the procuring entity first judges whether you can do the job well, and only then looks at what you want to be paid. In practice, though, this two-part structure trips up many capable firms. A price slipped into the wrong envelope, a missing CV or an unsealed package can disqualify a proposal before anyone reads it.

This guide walks you through how two-part proposals usually work in Sri Lankan public procurement, what goes into each part, how evaluation is typically carried out, and how to package and submit your proposal so that it survives the compliance check. It is a general guide: the request for proposals (RFP) or bidding document for each tender sets the binding rules, so always verify requirements in each tender's bidding documents.

What Is a Technical and Financial Proposal?

A technical and financial proposal is a bid split into two separate parts:

• The technical proposal explains how you will deliver: your understanding of the assignment, methodology, work plan, team, experience and compliance with specifications.
• The financial proposal explains how much it will cost: your prices, rates, breakdowns and any required financial forms.

The two parts are usually sealed and submitted separately, often described as the "two- envelope" system. On electronic procurement platforms such as Sri Lanka's e-GP system, PROMISE, the same principle may be applied through separate upload sections.

Where you will see it

| How often two-part | |---|

| Type of procurement | Typical evaluation | |---|---|

| proposals appear | |---| | Quality-based or combined quality Very common and cost |

| How often two-part | |---|

| Type of procurement | Typical evaluation | |---|---|

| proposals appear | |---| | Common Technical scoring, then price | | Technical compliance, then lowest Sometimes evaluated price | | Usually single envelope, lowest Less common evaluated responsive bid | | Rare Usually single envelope |

Procurement of consultants in Sri Lanka is generally governed by separate consultancy guidelines from those for goods and works, and many of those procedures rely on two-part proposals. Foreign-funded projects may follow the procedures of the funding agency. The RFP will tell you which rules apply.

How Two-Part Evaluation Usually Works

Understanding evaluation helps you write a better proposal. A common sequence is:

1.Proposal opening. Technical proposals are opened, often in the presence of bidders' representatives. Financial proposals remain sealed and are kept securely. 2.Technical evaluation. An evaluation committee scores or checks each technical proposal against the criteria in the RFP. 3.Minimum score or pass/fail. Proposals below a stated minimum technical score, or failing mandatory requirements, are eliminated. Their financial proposals are usually returned unopened or kept unopened. 4.Financial opening. Financial proposals of technically qualified bidders are opened, sometimes publicly. 5.Combined evaluation or price comparison. Depending on the method, the committee either combines technical and financial scores or selects the lowest priced technically qualified proposal. 6.Negotiation and award. For consultancy, negotiations with the top-ranked firm may follow before contract award.

Common selection methods

• Quality and cost based selection (QCBS): technical and financial scores are combined using weights stated in the RFP.
• Quality based selection (QBS): the highest technical score wins, and price is negotiated.
• Least cost selection: among proposals passing a minimum technical score, the lowest price wins.
• Fixed budget selection: the budget is disclosed, and the best technical proposal within it wins.

Illustrative example with hypothetical figures: if an RFP uses QCBS with weights of 80% technical and 20% financial, a firm scoring 85 technical and 70 financial earns 0.8 × 85 + 0.2 × 70 = 82. A competitor with 75 technical and 100 financial earns 0.8 × 75 + 0.2 × 100 = 80. The stronger technical proposal wins despite the higher price. The actual weights and formula are always set in the RFP.

Preparing the Technical Proposal

The technical proposal is where most marks are won or lost. Follow the RFP's structure exactly; evaluators score against a checklist, and making them hunt for information costs you points.

1. Mandatory forms and eligibility documents

Most RFPs include standard forms for the technical proposal. Typical items include:

• Technical proposal submission form (signed by an authorised person).
• Power of attorney or board resolution authorising the signatory.
• Business registration and, where relevant, joint venture agreement.
• Professional registrations, such as CIDA registration and grading for construction-related work.
• Declarations on conflict of interest, eligibility and integrity.

2. Firm experience

Show assignments that genuinely match the scope. For each, give the client, value, period, your role and a contact for verification if requested. Quality matters more than quantity: five well- matched projects are better than twenty loosely related ones.

3. Understanding of the assignment and methodology

This is your chance to show you have read and understood the terms of reference (TOR) or specifications:

• Restate the objectives in your own words.
• Identify risks and how you will manage them.
• Explain your approach, methods, tools and quality controls.
• Comment constructively on the TOR where appropriate, without changing the scope.

Avoid copying generic text from previous proposals. Evaluators can tell.

4. Work plan and schedule

Present a realistic timeline, ideally as a bar chart, showing activities, milestones, deliverables and reporting dates aligned with the TOR.

5. Key staff and CVs

Key experts often carry heavy weight in scoring. Use the CV format provided, match qualifications and experience to the position requirements, and include signed availability statements if required. Never include anyone who has not agreed to be named. Substituting key staff after award is usually restricted.

6. Compliance with specifications

For goods or systems, provide a clause-by-clause compliance statement, with brochures, data sheets or test certificates as evidence.

The golden rule: no prices in the technical proposal

Do not include any financial information in the technical proposal unless the RFP explicitly asks for it. Even an indirect hint, such as a priced bill of quantities in an appendix or a total fee in a cover letter, can lead to disqualification because it undermines the separation of the two evaluations.

Preparing the Financial Proposal

The financial proposal is usually shorter but must be precise.

What it typically contains

• Financial proposal submission form.
• Summary of costs.
• Breakdown of remuneration (staff rates multiplied by time inputs) for consultancy.
• Breakdown of reimbursable expenses, such as travel or accommodation, if allowed.
• Priced bill of quantities or price schedules for goods and works.
• Statement of taxes included or excluded, as required by the RFP.

Pricing tips

• Be consistent with the technical proposal. The staff time inputs in your financial proposal should match those in your work plan. Inconsistencies cause problems in evaluation and negotiation.
• Follow the currency instructions. Quote in the currency or currencies allowed.
• Handle taxes as instructed. Some RFPs require prices inclusive of applicable taxes; others ask for them separately. Confirm current tax rules with your adviser because rates can change.
• Check arithmetic. Many bidding documents explain how arithmetic errors will be corrected, often favouring unit rates over totals. A small error can change your evaluated price.
• Avoid conditional prices. Discounts or conditions not permitted by the RFP may be ignored or may make your offer non-responsive.

Packaging and Submission

Even a brilliant proposal fails if the packaging is wrong. For physical submissions, a typical arrangement looks like this:

| Package | Contents | Typical marking | |---|---|---| | Envelope 1 | Technical proposal original and copies | "Technical Proposal", tender reference, bidder name, "Do not open before…" | | Envelope 2 | Financial proposal original and copies | "Financial Proposal", tender reference, bidder name, "Do not open with technical proposal" | | Outer envelope | Both sealed envelopes | Procuring entity address, tender reference, closing date and time |

Check the RFP for the exact number of copies, marking wording, whether electronic copies on storage media are required, and how originals should be distinguished from copies.

Step-by-step submission routine

1. Create a compliance checklist directly from the RFP's instructions. 2. Assign one person to own the technical proposal and another to own the financial proposal, with a final reviewer for both. 3. Print, sign and initial pages as required. Use the authorised signatory named in the power of attorney. 4. Prepare the bid security if requested, in the stated form and validity period. 5. Seal each envelope separately, mark it correctly, then place both in the outer envelope. 6. Deliver before the deadline to the exact location stated, and obtain a receipt. 7. For electronic submissions, upload each part to the correct section, check file formats and size limits, and keep confirmation screenshots or acknowledgements.

Late proposals are normally rejected. Plan to submit at least a day early, and on e-GP platforms do not wait until the final hour, when connection problems or file errors can cost you the opportunity.

Common Mistakes to Avoid

• Including prices in the technical proposal.
• Using CV formats other than the one supplied.
• Proposing key staff who do not meet minimum qualifications.
• Missing signatures or using an unauthorised signatory.
• Mismatch between work plan inputs and financial breakdown.
• Ignoring addenda that changed forms, deadlines or criteria.
• Unsealed, incorrectly marked or mixed-up envelopes.
• Submitting to the wrong office or after the closing time.

Key Takeaways

• A technical and financial proposal separates how you will deliver from how much it will cost, and the two are evaluated in sequence.
• Your technical proposal must meet any minimum score before your price is even considered.
• Follow the RFP's structure, forms and scoring criteria exactly.
• Never reveal prices in the technical part.
• Keep staff inputs and costs consistent across both parts.
• Package, mark and submit precisely as instructed, and early.

Final pre-submission checklist

• All addenda received and incorporated
• Technical proposal follows the RFP section order
• All CVs in the required format, signed where needed
• No financial information in the technical proposal
• Financial forms complete, arithmetic checked, taxes treated as instructed
• Authorised signatory and power of attorney included
• Bid security attached if required
• Envelopes sealed and marked, or e-GP uploads confirmed
• Receipt or submission acknowledgement saved

Frequently Asked Questions

What is the difference between a technical and financial proposal and a normal bid?

A normal single-envelope bid includes everything, including price, in one package and is usually evaluated for responsiveness and lowest evaluated price. A two-part proposal is evaluated first on technical merit; price is considered only for proposals that qualify technically.

Can I submit both parts in one envelope?

Not if the RFP requires separate envelopes. Combining them can lead to rejection. Follow the packaging instructions exactly.

What happens to my financial proposal if I fail the technical evaluation?

Usually it is not opened and may be returned to you. The RFP will describe the procedure.

Can I change my proposal after submission?

Many bidding documents allow modification or withdrawal before the deadline using a specified procedure, but not after. Check the instructions to bidders for the exact rules.

How do I know the evaluation weights?

The RFP or data sheet normally states the evaluation criteria, sub-criteria, minimum technical score and any technical-financial weighting. If something is unclear, submit a written clarification request before the stated deadline.

Are two-part proposals used on PROMISE?

Electronic procurement systems can support separate technical and financial submissions. Whether a particular tender uses e-GP, and how the parts are uploaded, depends on that tender's bidding document.

Conclusion

Winning with a two-part proposal comes down to discipline: understand how you will be scored, build a technical proposal that answers every criterion, price consistently, and package everything exactly as instructed. Firms that build a reusable proposal library and a firm submission routine find each new proposal easier and stronger than the last.

Ready to put this into practice? Follow the daily tender notices on TenderHub.lk to spot consultancy, IT and services opportunities that call for technical and financial proposals, and set alerts so you have time to prepare properly.

Note: Procedures differ between tenders and funding sources. Always verify requirements in each tender's bidding documents and with the procuring entity.

Related guides

• Request for Quotation (RFQ) vs Request for Proposal (RFP)
• Understanding Sri Lanka Procurement Guidelines 2024
• How to Check Government Tender Results
• How to Find Government Contract Award Notices

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