HKSM

Selected sellers are the vendors chosen through a formal procurement process to deliver specific goods or services for the project. The decision is based on predefined evaluation criteria and leads to negotiation and award of agreements.

Key Points

• Selected sellers are the suppliers chosen after evaluating bids or proposals against agreed criteria.
• This artifact is created after proposal evaluation and before or alongside final agreement award.
• It typically includes the recommended seller(s), evaluation results, selection rationale, and next steps for negotiation and award.
• Selection should be objective, traceable, and compliant with organizational procurement policies.
• The list feeds contract finalization, onboarding, and baseline updates for cost, schedule, and risk.
• Maintain a clear audit trail to support transparency and potential debriefs or protests.
• Reassess risks and assumptions introduced by the chosen seller(s) before contract award.

Purpose

The Selected sellers artifact formally identifies which vendors the project intends to award work to and why. It enables timely negotiations, contract finalization, onboarding, and integration of supplier work into plans and baselines while preserving a transparent record of the decision.

Key Terms & Clauses

• Evaluation criteria: Mandatory checks (e.g., compliance) and weighted factors (e.g., technical capability, cost, risk, schedule).
• Contract type: Fixed-price, cost-reimbursable, or time-and-materials, aligned to risk and scope clarity.
• Statement of work and acceptance criteria: Clear scope, deliverables, quality measures, and acceptance process.
• Service levels and reporting: SLAs/OLAs, KPIs, and performance reporting cadence.
• Change control: How scope, price, and schedule changes are requested, evaluated, and approved.
• Commercial protections: Warranties, liability caps, indemnities, intellectual property, confidentiality, and data protection.
• Performance security and remedies: Bonds, holdbacks, liquidated damages, and termination rights.
• Subcontracting and key personnel: Approval rights, substitutions, and continuity requirements.

How to Develop/Evaluate

• Confirm the procurement statement of work, evaluation criteria, and scoring weights with stakeholders and procurement.
• Screen proposals for mandatory compliance; exclude noncompliant bids to keep evaluation fair and efficient.
• Use a weighted scoring model to rate technical capability, approach, schedule, risk response, and total cost of ownership.
• Perform due diligence: references, financial health, capacity, past performance, and legal or regulatory checks.
• Compare price realism and reasonableness using independent estimates or benchmarks.
• Hold clarifications or negotiations; when appropriate, request best-and-final offers to firm up terms.
• Document the selection recommendation, including scoring results, rationale, and any conditions or assumptions.
• Obtain required approvals from the procurement authority and sponsor before award notifications.

How to Use

• Finalize and execute agreements with the selected seller(s); update cost, schedule, and risk baselines.
• Plan onboarding: kickoff meetings, points of contact, RACI, communication and reporting expectations.
• Integrate supplier milestones and deliverables into the project schedule and dependency map.
• Set up performance management: SLAs, KPIs, acceptance criteria, and inspection or testing gates.
• Establish joint change, risk, and issue management processes with the supplier.
• Archive evaluation records and maintain a procurement file for audits and future lessons learned.

Example Snippet

Excerpt from a Selected Sellers List:

• Seller: Apex Solutions — Lot: Hardware — Contract Type: Fixed-Price — Score: 88/100 — Rationale: Strong technical compliance, best lifecycle cost — Status: Recommended for award.
• Seller: Nova Services — Lot: Integration — Contract Type: T&M with NTE — Score: 85/100 — Rationale: Highest capability, mitigated staffing risk — Status: Pending final negotiation.
• Seller: Orion Logistics — Lot: Deployment — Contract Type: Fixed-Price — Score: 80/100 — Rationale: Solid past performance, acceptable schedule — Status: Alternate if primary declines.

Risks & Tips

• Bias or conflicts of interest can taint decisions; require declarations and use cross-functional evaluation panels.
• Lowest-price trap may increase total cost later; evaluate best value and total cost of ownership.
• Ambiguous scope leads to change disputes; refine SoW and acceptance criteria before award.
• Overreliance on a single supplier increases dependency risk; consider secondary sources or transition clauses.
• Weak negotiation can lock in unfavorable terms; prepare targets, trade-offs, and walk-away points.
• Poor onboarding delays early deliverables; schedule a supplier kickoff and align on ways of working.
• Inadequate records invite protests; keep a complete, traceable evaluation and approval trail.

PMP Example Question

After scoring proposals, the team has identified a preferred vendor and a backup. According to organizational policy, approvals are required before award notices are sent. What should the project manager do next?

1. Notify all bidders of the outcome and schedule the kickoff with the preferred vendor.
2. Begin contract administration activities with the preferred vendor to save time.
3. Finalize the selection recommendation with rationale and obtain required procurement approvals.
4. Issue a change request to update the procurement management plan.

Correct Answer: C — Finalize the selection recommendation with rationale and obtain required procurement approvals.

Explanation: Selected sellers should be documented and approved per policy before award notifications or contract administration begins. This preserves compliance and transparency.