MEAT Evaluation, standing for “Most Economically Advantageous Tender,” is a procurement principle applied in institutional contexts, including crypto RFQ processes. It signifies selecting a bid that offers the optimal combination of price and qualitative criteria, rather than solely the lowest cost. This framework allows for a holistic assessment of factors like technical merit, service quality, security, and counterparty reliability alongside financial terms.
Mechanism
The mechanism involves a structured scoring system where bids are assessed against a pre-defined set of weighted criteria, encompassing both economic factors (e.g., pricing, fee structure) and non-economic factors (e.g., platform uptime, API robustness, regulatory compliance, client support). Each criterion receives a score, and these scores are aggregated based on their assigned weights to produce an overall evaluation. This process moves beyond a simple lowest-price selection to a value-based decision.
Methodology
The methodology for conducting a MEAT Evaluation requires establishing clear, objective criteria and transparent weighting schemes before the RFQ process begins. This includes defining the relative importance of technical specifications, security audits, settlement speed, and counterparty reputation in addition to quoted prices for crypto assets or options. Implementing this method ensures that the chosen vendor or liquidity provider offers not just cost efficiency but also a superior overall solution that aligns with the institutional client’s long-term operational and strategic objectives.
Sensitivity analysis in RFPs differs by objective: the public sector validates procedural fairness, while the private sector models financial outcomes.
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