In source selection, which factor is mandatory?

In source selection, which factor is mandatory?

• A. Past Performance
• B. Cost
• C. Verification
• D. Small Business Participation

Answer: (B)

Price or cost is the mandatory aspect in source selection. The government must include an evaluation of price or cost to ensure the selected proposal fits within budget and delivers value relative to the money spent. Other factors like past performance, verification, and small-business participation can be important and are used to differentiate offers or advance policy objectives, but they are not universally required in every procurement. In practice, the best-value decision weighs price or cost together with non-cost factors, but without considering cost, there’s no baseline to judge overall value.

Price or cost is the mandatory aspect in source selection. The government must include an evaluation of price or cost to ensure the selected proposal fits within budget and delivers value relative to the money spent. Other factors like past performance, verification, and small-business participation can be important and are used to differentiate offers or advance policy objectives, but they are not universally required in every procurement. In practice, the best-value decision weighs price or cost together with non-cost factors, but without considering cost, there’s no baseline to judge overall value.