SSAD.SP 2.3 Select Suppliers
Summary
Select suppliers based on an evaluation of their ability to meet specified requirements and established criteria.
Description
Proposal evaluation results are used to finalize a supplier selection based on the outcome of negotiations or responses to acquirer questions provided by potential suppliers. Negotiations enable the acquirer to select the best supplier for the project. In some cases, the acquirer can take the top two proposals and use negotiations to make the final selection decision.
Evaluation results and negotiation results support the selection decision or cause the acquirer to take other action, as appropriate. If the return on investment is not sufficient, the acquirer can decide to defer or cancel the project.
Example Work Products
- Revisions due to negotiations
- Supplier selection decision
- Evaluation reports
Subpractices
1. Evaluate supplier proposals.
The evaluation of supplier proposals includes an evaluation of past performance. The acquirer’s evaluation of past supplier performance is carried out primarily to document the supplier’s competency relative to performing similar work on the project or other projects.
2. Negotiate with suppliers to determine the best fit for the project.
Negotiate with the selected supplier or candidate suppliers to resolve issues identified during due diligence and to address remaining issues with requirements. Revise requirements to be fulfilled by the supplier as appropriate.
3. Select a supplier to be awarded the supplier agreement.
4. Document the selection.