In source selection, when the requirement is less defined or performance risk is high, which factors may play a dominant role?

In source selection, when the requirement is less defined or performance risk is high, which factors may play a dominant role?

• A. Cost or price
• B. Technical or past performance considerations
• C. Small business status
• D. Geographic proximity

Answer: (B)

When a requirement is not clearly defined or the project carries high performance risk, you want to ensure the chosen contractor can actually deliver the needed solution. In these cases, technical merit and past performance become the primary indicators of success because they directly reflect the bidder’s ability to meet the performance goals and reduce risk. A bidder with strong technical capabilities and a solid track record is more likely to produce a workable, reliable solution, even if their price is higher. Price remains a factor, but it serves as a secondary discriminator after confirming the technical solution and risk are well addressed. Factors like small business status or geographic proximity don’t directly speak to capability or risk and thus aren’t dominant in such scenarios.