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Also called evaluation criteria, this is developed by the buyer during procurement planning to rate responses from the sellers. The evaluation criteria could be as simple as the price for off the shelf standard items, or it could be a combination of factors for a more complex proposal. Following is a list of some examples of evaluation criteria.

• Cost - To evaluate the overall cost, you should consider all cost-related factors, such as:

o Purchase price

o Delivery cost

o Operating cost • Business aspects - This can include the following factors:

o Business size and type - Does the business size or type meet a condition set forth in the contract, such as being a small business or a disadvantaged small business?

o Financial capacity - Does the seller have the financial capacity to do the job, or is the seller in a position to obtain the necessary financial resources to do the job?

o Production capacity and interest - Does the seller have the capacity and the interest to meet future potential requirements?

o References - Can the seller provide reliable references (such as from previous customers) verifying the seller's work experience and history of compliance with contractual requirements? • Management approach - If the procurement itself involves a project, does the seller have the ability to execute management processes and procedures to run a successful project?

• Rights - The following rights can be considered:

o Intellectual property rights - Will the seller own the intellectual property rights for the work processes or services that will be used to produce the deliverables?

o Proprietary rights - Will the seller have the proprietary rights for the work processes or services that will be used to produce the deliverables? • Technical aspects - This includes the technical approach and capability:

o Technical approach - Will the technical methodologies, techniques, solutions, or services proposed by the seller meet the procurement requirements, or will they provide more than the expected results?

o Technical capability - Does the seller have or is the seller capable of acquiring the technical skills and knowledge required to produce the deliverables?

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Q: What is source selection criteria?
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