13 Examples Of Source Selection Criteria
Source Selection Criteria in project management are the standards used to rate or score proposals, quotes, or bids and form a part of the procurement solicitation documents.
Some source selection criteria are objective and can be readily demonstrated and measured.
Other criteria are subjective and open to different interpretations. Objective criteria tend to be much more specific than subjective criteria.
Typical example…
Objective criteria
PhD chemist with at least five-year experience in cinematographic research.
80000-90000 square-foot storage area within three miles of the Dallas-fort Worth Airport.
Subjective Criteria
Experienced laboratory chemist with strong analytical skills.
Ample square-foot storage area near Dallas-Fort Worth Airport.
The subjective criteria leave room for interpretation as to what is meant by “experienced” and “strong”. Conversely, the requirement of a PhD, with five years experience is very specific and not open to interpretation, making it an objective criterion.
In my previous articles, I have discussed what source selection criteria is. It is more of the conditions that you look at before you award a contract. This ensures that an awardee is not biased when awarding contracts. In this article, I want to look at some of the examples of source selection criteria that you need to know.
Here are the examples…
#1 Understanding of needs
Does the seller’s proposal effectively address the procurement Statement of Work while demonstrating a clear understanding of the needs?. You have to critically examine the proposal and make sure that the seller in his response really understand what you are trying to achieve with the project.
#2 Overall or life-cycle cost
Does the selected seller produce the lowest total cost of ownership, which includes the purchase cost and operating cost? In determining which of the seller to choose, you have to know how much much you will spend on each stage of the project. This will help you to determine whether you have all that it takes to finish the project before you get started.
#3 Technical capability as one of the examples of source selection criteria
Does the seller have or is the seller expected to acquire the technical skills and knowledge needed for the project? You need to ask the seller to show some of the examples of jobs that he has performed before. He needs to show evidence that he was the one the execute those contracts. This will allow you to determine whether he has the know-how to execute the contract.
#4 Management approach as one of the examples of source selection criteria
Does the seller have or can the seller reasonably develop the management processes and procedures to ensure a successful project? You have to look at the management structure of that organisation as well as some of their checks and balances. This will help you to determine some of the measures they have put in place in order to deliver projects effectively.
#5 Technical approach as an example of source selection criteria
Does the seller’s proposed technical methodologies, techniques, solutions, and services meet the project’s requirements? It is very essential for you to determine the method that he is planning to use? This will help you to determine whether those methods are in line with your own business philosophy.
#6 Warranty as one of the examples of source selection criteria
Does the seller provide a warranty for the final product and for what duration? You have to know what happens if there are defects after project delivery. What are some of the measures they have put in place in terms of ensuring that quality projects are delivered? What are some of the contingencies that they have put in place in order to deliver quality projects.
#7 Financial capability as one of the examples of source selection criteria
Does the seller have or is the seller expected to obtain the necessary financial production capability and interest resources? You have to look at their financial statements as well as bank guarantees which will give you an idea of how far the organisation will be able to execute without much financial burden from your own end.
#8 Production capacity and interest
Does the seller have the capacity and interest to meet the project requirements? You need to consider the overall infrastructures and tools that the organisation will use in producing the deliverables. What is the age of their technology? Does it have the capacity to deliver the expected result? This is necessary in order to determine whether the seller has the capacity to deliver.
#9 Business size and type
Does the seller’s company meet a specific category of business defined by the buyer, or established by a governmental agency, and included as a condition in the contract? Categories could include small, women-owned, or disadvantaged small business.
#10 Past performance of sellers
Does the company have past experience with selected sellers? Just like I said earlier. You might want to contact some of their past clients and check their records in order to determine whether they have what it takes to deliver according to expectation.
#11 References
Does the seller provide references from previous customers verifying the seller’s work experience and compliance with contractual requirements? You have to look at how many references they are able to provide. You should not only look at the records provided, but you might also need to find time to call their references in order to gather the first-hand experience.
#12 Intellectual property rights
Are intellectual property rights established by the seller in work processes or services to be used for the project? You need to know if there are laws, terms and conditions that you need to abide with. Is it that you must not share their deliverables with others. This will help you in avoiding unnecessary legal actions later on.
#13 Property rights
Are proprietary rights ensured by the seller in the work processes or services to be sure for the project? You have to determine who will be in charge of the deliverables at the end of the project. Who will own the deliverables of the project? You have to determine who is going to continue to maintain the deliverables.
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