Selection criteria are often included as a part of the procurement solicitation documents. Such criteria are developed and used to rate or score seller proposals, and can be objective or subjective.
Selection criteria can be limited to purchase price if the procurement item is readily available from a number of acceptable sellers. Purchase price in this context includes both the cost of the item and all ancillary expenses such as delivery.
Other selection criteria can be identified and documented to support an assessment for a more complex product or service or results. Some examples are:
• Understanding of need. How well does the seller's proposal address the procurement statement of work?
• Overall or life-cycle cost. Will the selected seller produce the lowest total cost (purchase cost plus operating cost)?
• Technical capability. Does the seller have, or can the seller be reasonably expected to acquire, the technical skills and knowledge needed?
• Risk. How much risk is embedded in the statement of work, and how much risk will be assigned to the selected seller?
• Management approach. Does the seller have, or can the seller be reasonably expected to develop, management processes and procedures to ensure a successful project?
• Technical approach. Do the seller's proposed technical methodologies, techniques, solutions, and services meet the procurement documentation requirements or are they likely to provide more than the expected results?
• Warranty. What does the seller propose to warrant for the final product, and through what time period?
• Financial capacity. Does the seller have, or can the seller reasonably be expected to obtain, the necessary financial resources?
• Production capacity and interest. Does the seller have the capacity and interest to meet potential future requirements?
• Business size and type. Does the seller's enterprise meet a specific type or category of business, such as small, women-owned, or disadvantaged small businesses, as defined by the buyer or established by governmental agency and set-forth as a condition of contract award?
• Past performance of sellers. What has been the past experience with selected sellers?
• References. Can the seller provide references from prior customers verifying the seller's work experience and compliance with contractual requirements?
• Intellectual property rights. Does the seller assert intellectual property rights in the work processes or services they will use or in the products they will produce for the project?
• Proprietary rights. Does the scMcr assert proprietary rights in the work processes or services they wiii use or in the products they will produce for the project?
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.