Finance:Source selection criteria

Source selection criteria describes properties that are crucial for a purchaser when deciding on a supplier. Criteria can be subjective or objective. Individual judgment can be biased, which may require balancing with objective measures. One approach is to identify a list of criteria such as cost and financial stability, assign a weight to each one and to score each vendor on each criterion. Then multiply the score by the weight and sum to get a final score. .

Criteria

Criteria can be specific to the desired item(s). Sample criteria:

• Total costs (including works and maintenance)
• Ability to finance
• Capability for technical matters
• The distribution of risks
• The shape of business
• Previous works and references
• Providing Warranty

See also

• Vendor bid analysis
• Stock selection criterion
• Government procurement in the United States

External links

• Department of Defense Source Selection Procedures - USTranscom