L1 in a tender: how the lowest bidder is decided
L1 (Lowest bidder). The lowest priced responsive bid, ranked under the evaluation method the tender specifies. Only bidders who pass technical evaluation are ranked.
Checked against its sources on 23 September 2026.
How it is ranked
The tender states the evaluation method, for example item wise or total value wise, and bids are ranked on the price that method defines. In a two-bid tender, financial bids are opened only for technically qualified bidders, so a low price from a bidder who failed technical evaluation never becomes L1.
On GeM, where a reverse auction follows, L1 is the lowest total price when the auction closes.
When the award moves away from L1
Two preferences can change who supplies. A registered MSE quoting within L1 plus 15% may match L1 and supply up to 25% of the tendered value. Under Make in India, a Class-I local supplier within 20% of a lower non-local bid may be invited to match it.
Neither stops anyone bidding; both act after bids are opened.
Where ScanX reads this for you
ScanX does not collect award or L1 data from the portals. Results your team records are tracked, and on the Group plan a tender can be priced from your own comparable past jobs.