Which two factors must be evaluated in every source selection process?

In the context of source selection processes in contracting, the factors of price or cost and quality are fundamental to making informed decisions. Price or cost is essential as it directly affects the overall budget and financial feasibility of a project. Meanwhile, quality is crucial because it ensures that the goods or services provided meet the required standards and specifications necessary for successful project execution.

When evaluating potential sources, balancing these two aspects allows organizations to not just look for the lowest bid but rather to consider the value received for the expenditure. An emphasis solely on cost can lead to compromises in quality, which can, in turn, impact the effectiveness and efficiency of the project. Thus, recognizing the importance of both cost and quality provides a more comprehensive assessment of bidders and their proposals, paving the way for a selection that meets both budgetary constraints and quality standards.

Other options, while they may include important considerations, do not encompass the overarching principle of balancing cost and quality, which is a critical aspect of effective source selection. For example, while factors like past performance and technical management are important in certain contexts, they do not directly address the fundamental trade-off between what you pay and the quality of what you receive.