The assessment will produce the following output for consideration by the contracting officer in making the award decision:
Risk assessment ratings measure the likelihood of whether the potential supplier will provide quality services that meet the client’s cost, schedule, and performance requirements over the life of the contract, as shown in Figure 2.13.
Figure 2.13
Risk Assessment Ratings on Supplier Proposals
Rating
Definition
High
Proposal exhibits less-than-solid fit to Postal Service quality control standards and risk management plan; likely to cause significant disruption of schedule, increased cost, or degradation of performance. Risk may be unacceptable, even with special supplier effort and close Postal Service monitoring.
Medium
Proposal exhibits solid fit to Postal Service quality control standards and risk management plan; can potentially cause some disruption of schedule, increased costs, or degradation of performance. Special supplier effort and close Postal Service monitoring will probably be able to overcome difficulties.
Low
Proposal exhibits excellent fit to Postal Service quality control standards and risk management plan; has little potential to cause disruption of schedule, increased costs, or degradation of performance. Normal supplier effort and normal Postal Service monitoring will probably be able to overcome difficulties.
A risk assessment rating of “medium” or “high” may signal an overall lack of fit with client requirements and can negatively impact the technical evaluation. Certain risk factors may lead to risks that may result in consequences that will affect the technical rating. For example, an unrealistically low staffing level for the project can mean work overload per resource assigned and consequently result in inferior quality of the end product(s).
