Part 167: Source Selection Criteria

//Part 167: Source Selection Criteria
Part 167: Source Selection Criteria2022-08-21T03:59:54+00:00

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?
  • The proposals are ranked
  • Each of the criteria could have a different weight