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12 - PROJECT PROCUREMENT MANAGEMENT

• understanding of need. How well does the seller’s proposal address the procurement statement of
work?
• overall or life-cycle cost. Will the selected seller produce the lowest total cost of ownership (purchase
cost plus operating cost)?

• technical capability. Does the seller have, or can the seller be reasonably expected to acquire, the
technical skills and knowledge needed?
• risk. How much risk is embedded in the statement of work, how much risk will be assigned to the
selected seller and how does the seller mitigate risk?
• Management approach. Does the seller have, or can the seller be reasonably expected to develop,
management processes and procedures to ensure a successful project?
• technical approach. Do the seller’s proposed technical methodologies, techniques, solutions, and
services meet the procurement documents requirements or are they likely to provide more or less than
the expected results?

• Warranty. What does the seller propose to warrant for the final product, and through what time period?
• Financial capacity. Does the seller have, or can the seller reasonably be expected to obtain, the necessary
financial resources? 12
• Production capacity and interest. Does the seller have the capacity and interest to meet potential
future requirements?

• Business size and type. Does the seller’s enterprise meet a specific category of business such as
small business (disadvantaged, specific programs, etc.) as defined by the organization or established by
governmental agency and set forth as a condition of the agreement award?

• Past performance of sellers. What has been the past experience with selected sellers?
• references. Can the seller provide references from prior customers verifying the seller’s work experience
and compliance with contractual requirements?
• Intellectual property rights. Does the seller assert intellectual property rights in the work processes or
services they will use or in the products they will produce for the project?

• Proprietary rights. Does the seller assert proprietary rights in the work processes or services they will
use or in the products they will produce for the project?

©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 369
®

Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412
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