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12 - PROJECT PROCUREMENT MANAGEMENT

12.1.3.3 Procurement documents

Procurement documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or
quotation are generally used when the seller selection decision will be based on price (as when buying commercial
or standard items), while a term such as proposal is generally used when other considerations, such as technical
capability or technical approach are paramount. Common terms are in use for different types of procurement
documents and may include request for information (RFI), invitation for bid (IFB), request for proposal (RFP), request
for quotation (RFQ), tender notice, invitation for negotiation, and invitation for seller’s initial response. Specific
procurement terminology used may vary by industry and location of the procurement.

The buyer structures procurement documents to facilitate an accurate and complete response from each
prospective seller and to facilitate easy evaluation of the responses. These documents include a description of the
desired form of the response, the relevant procurement statement of work (SOW) and any required contractual
provisions. With government contracting, some or all of the content and structure of procurement documents may
be defined by regulation.

The complexity and level of detail of the procurement documents should be consistent with the value of, and
risks associated with, the planned procurement. Procurement documents are required to be sufficient to ensure
consistent, appropriate responses, but flexible enough to allow consideration of any seller suggestions for better
ways to satisfy the same requirements.

Issuing a procurement request to potential sellers to submit a proposal or bid is normally done in accordance
with the policies of the buyer’s organization, which can include publication of the request in public newspapers, in
trade journals, in public registries, or on the internet.

12.1.3.4 Source Selection criteria

Source selection criteria are often included as a part of the procurement documents. Such criteria are developed
and used to rate or score seller proposals, and can be objective or subjective.

Selection criteria may be limited to only the purchase price if the procurement item is readily available from
a number of acceptable sellers. Purchase price in this context includes both the cost of the item and all ancillary
expenses such as delivery.

Other selection criteria can be identified and documented to support an assessment for more complex products,
services, or results. Some possible source selection criteria are:

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