Question

When selecting a supplier for contract award, there are several things to consider. As a contracting officer, what are some of the various factors you consider when evaluating a proposal and/or bid package, and determining whether the supplier is capable of delivering the products/services outlined in the advertisement and detailed in the terms/specifications?

Answer 1

Deciding to choose a supplier is a important task as it relates to operations of the business. While selecting a supplier the following factors may be considered:

1. The price at which nunerious sellers are selling the same good. As numerious suppliers sell similar goods , price each seller takes for per good must be considered as it will ultimately reduce the total cost of the firm which will make the firm more competitive.

2. Quality of good assured meets the standard of the business that taking the goods from the supplier. Quality assurance can be done by taking samples of the good and then evaluating the quality of the goods. If quality doesnt coorelate to the price the vendor charges, then it will affect the business and its profitability.

3. The flexibility of the seller in terms of shiping of goods and payment structure are important. Many a times shipping location is changed due to some issues also at times payment is not promt due to any glitches in the processing. The vendor must be cooperative and flexible in terms of the business. Hence while choosing a supplier the supplier must meet the above condition.

4. The experiance of the vendor also plays a important role. As the more experiance a supplier is the better the quality of their service will be. Experiance of supplier makes the supplier understand how to deal with the complication its buyer faces at certain times. For example - if in case the storage facility of the business collapse, it is important to note how the supplier deals with it. The more experianced the supplier will be the better it will tackle the issue so that it benefits both he and the business.

5. The speediness of rendering the service by seller is also important. As it reduces the time lag between ordering time and delivery time. Thus it will help the business to hold less goods at its store thereby reducing cost of storage and the business will also be able to get goods timely thereby making it easy for customers to get the good.

Thus the above points are to be evaluated before choosing a supplier or getting into a contract with the supplier.