Part 167: Source Selection Criteria
(OUTPUT Project Procurement Management: Plan Procurement Management)
- Source Selection Criteria are used to rate seller proposals
- Can be objective or subjective
- Criteria can be limited to the purchase price or include other criteria
- Other criteria include
- Understanding of Need
- How well the seller understands the Statement of Work
- Overall or Life-Cycle Cost
- The lowest total cost of ownership (purchase costs and operating costs)
- Technical Capability
- Does the seller have the technical knowledge to provide the goods or services?
- Risk
- How much risk is the seller responsible for?
- If the seller fails, what will happen to the project?
- Management Approach
- Does the seller have management processes to ensure a successful project?
- Technical Approach
- Do the seller’s technical methodologies meet the requirements?
- Warranty
- What is the seller’s warranty?
- Financial Capability
- Does the seller have the necessary financial resources to deliver the product?
- Production Capacity and Interest
- Is the seller capable of meeting the quantity requirements?
- Business Size and Type
- Does the seller’s business meet a specific category?
- A company may try to favor small businesses, minority-owned businesses, or disadvantaged communities when procuring goods
- Past Performance of Sellers
- How did the seller perform in a previous procurement?
- References
- Can the seller provide references from other customers?
- Intellectual Property Rights
- Does the seller maintain intellectual property rights in the products or services delivered?
- Proprietary Rights
- Does the seller assert proprietary rights in their processes or services?
- Understanding of Need
- The proposals are ranked
- Each of the criteria could have a different weight