Question

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. It's important the team takes the necessary time to evaluate the potential sellers for the project.

Provide your answers to the following questions:

1. Please discuss the characteristics that you find important from a seller. What makes one seller more competent than another?

Answer 1

As described in Guide to Project management Body of Knowledge, the following characteristics are considered when evaluating and comparing a seller vis-a-vis other seller:

1. Capability & capacity- The capability of seller to perform similar scope of work as per his proven track record and better capacity to execute large quantum of work makes a better seller
2. Product cost and Life cycle cost - The capital cost of product and the operating cost during the life cycle should be less owing to mechanized production techniques and better quality product
3. Delivery dates - The track record of seller to ensure on-time or before time delivery in previous similar projects makes him better
4. Technical expertise and approach - Organised approach to execute the project with access to required technology gives the seller an edge over other sellers
5. Adequacy of proposed approach and work plan in responding to scope of work - Innovative approach if proposed by seller should be feasible to perform the scope of work
6. Key staff's qualification, availability & competence - Experienced staff available throughout the execution with access to technically competent resources will ensure success of the project
7. Financial stability of the firm - Good and stable financial records and strong books of accounts will ensure that there is no stoppage of work during execution due to non-availability of funds
8. Management experience - Experience of higher management for executing the scope of work will prove handy in unforeseen circumstances when top management guidance may be required
9. Suitability of knowledge transfer program including training - If the scope of work contains activities which need to be learned by the operating personnel of buyer, technically competent resources in the seller organisation should be available timely to train the buyer personnel

Above qualities makes one seller more competent as compared to other and have to be considered while evaluating the potential sellers for the project.