RAV
I NISHANT
PROJECT PROCUREMENT
SOURCE SELECTION CRITERIA
SOURCE SELECTION
METHODS
Selecting a source selection method for a tender
process should be based on objective factors
such as:
The completeness of the scope to be
procured by the buyer before the tendering
process.
Available budget for the procurement.
Available time for tendering process.
SOURCE SELECTION
CRITERIA
Under project management, source selection criteria are
often included as part of the procurement documents.
Source selection criteria describes properties that are
crucial for a purchaser when deciding on a supplier.
Source selection criteria describes properties that are crucial for a
purchaser when deciding on a supplier and are used to score seller
proposals.
Snapshot of Evaluation Critereia
MARKET
INTELLIGENCE
YOUR SOURCE OF SUPPLIER INFORMATION....
Commodity profile information:
Cost structure:
Supply base information:
Supply and demand price drivers, capacity utilization:
Buyers’ and suppliers’ relative size and buying power:
Quality:
SOURCES OF
INFORMATION
Current suppliers
Preferred suppliers
Sales representatives
Information databases
Trade journals
Trade directories
Trade shows
Second-party or indirectinformation
Internal sources
Internet searches
STANDARD CRITERIA
FOR EVALUATION..
Sr.No Category Criterion Explanation
Does
Management seller have, or can it develop, management
1 Integration
approach processes and procedures to ensure
a successful project?
Does
Understanding
2 Scope proposal address the Procurement Statement
of need
of Work (SOW)?
With
what degree of confidence can the seller
3 Time Deadline
produce the product within the
specified deadline?
What
Overall
4 is the total cost of the procurement (purchase
or life-cycle cost
cost plus operating cost)?
Financial Does
5..
capacity seller have necessary financial resources?
Cost Does
IP seller assert intellectual property rights in the
6
Rights product they produce for
the project?
Does
Proprietary
7 seller assert proprietary rights in the product
Rights
they produce for the project?
STANDARD CRITERIA
FOR EVALUATION..
Sr.No Category Criterion Explanation
Can
Technical seller’s technical methodologies, techniques and solutions
8
approach meet the technical
requirements in the procurement documents?
What
9 Quality Warranty will seller covered by warranty, and for what time
period?
Does
Production seller have sufficient production capacity to meet potential
10
capacity future
requirements?
Human Technical Does
11
Resources capability seller have technical knowledge and skills needed?
How
Risk much risk is being assigned of transferred to the seller?
12 Risk
response How does the
seller mitigate risk?
Does
seller’s enterprise meet a specific category of business
Business (disadvantaged,
13 EEFs
type and size etc.) defined by the organization or established as
condition by government
agency?
Past What
14 OPAs
performance is past performance of selected sellers?
WEIGHTAGE
After the attributes have been identified, a weight is assigned to
each category based on the importance of that attribute.
The weighting system is a tool used to eliminate or reduce bias by
quantifying the attributes of the vendors.
Although there’s no one right way to
build a scorecard, consider these five
core criteria that every scorecard
should include:
Level of service
Cost control
Ease of doing business
Regulatory compliance
Innovation
@Ravi Nishant
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