What are the two evaluation factors that must be assessed in every source selection?

The requirement to assess both price or cost and technical merit in every source selection is grounded in the fundamental principles of procurement and contract management. Price or cost is crucial as it directly relates to the financial aspect of acquiring goods or services, ensuring that the buyer can obtain what they need within budget constraints. This aspect is often critical in establishing the value for money that an organization seeks.

On the other hand, assessing technical merit ensures that the bidders or proposals meet the necessary standards for quality and functionality. This factor helps to confirm that the offered solutions can fulfill the project requirements as stipulated in the solicitation.

By evaluating these two factors together, decision-makers can make informed choices that not only consider the costs involved but also ensure that the selected contractor can deliver the expected level of quality. This balance between price and technical merit promotes effective procurement and minimizes risks associated with contract performance.