vendor-evaluation-framework

# Vendor Evaluation Framework

## Overview

Transform vendor selection from subjective preference into rigorous evaluation that reduces risk and maximizes value. This skill encodes the frameworks for requirements gathering, RFP creation, scoring methodology, and negotiation that select the right vendor—not just the one with the best sales team.

## When to Use This Skill

- **RFP/RFI creation** — Building vendor solicitation documents
- **Evaluation design** — Creating scoring matrices and criteria
- **Vendor comparison** — Analyzing multiple vendor options
- **Reference checks** — Validating vendor claims
- **Negotiation prep** — Preparing for contract discussions

## Evaluation Process Framework

### Phase Overview

| Phase | Duration | Activities | Deliverable |
|-------|----------|------------|-------------|
| **1. Requirements** | 1-2 weeks | Stakeholder interviews, needs analysis | Requirements doc |
| **2. Market Scan** | 1-2 weeks | Research, longlist creation | Vendor longlist |
| **3. RFP/RFI** | 2-4 weeks | Solicitation, vendor responses | RFP responses |
| **4. Evaluation** | 2-3 weeks | Scoring, demos, references | Shortlist + scores |
| **5. Selection** | 1-2 weeks | Final comparison, decision | Recommendation |
| **6. Negotiation** | 2-4 weeks | Contract, pricing, terms | Signed contract |

## Requirements Gathering

### Stakeholder Interview Questions

| Category | Questions |
|----------|-----------|
| **Business** | What problem are we solving? What's the cost of not solving it? |
| **Functional** | What capabilities are must-have vs. nice-to-have? |
| **Technical** | What integrations are required? What are security requirements? |
| **Operational** | Who will use this? What's the rollout plan? |
| **Financial** | What's the budget? What ROI do we need? |

### Requirements Categorization

| Priority | Definition | Scoring |
|----------|------------|---------|
| **Must-have** | Deal-breaker if absent | Pass/Fail |
| **Should-have** | Strongly preferred | Weighted high |
| **Nice-to-have** | Adds value but not critical | Weighted low |

### Requirements Template

```
REQUIREMENT ID: [R-001]
Category: [Functional/Technical/Security/Support]
Priority: [Must-have/Should-have/Nice-to-have]
Description: [Clear, specific requirement]
Acceptance Criteria: [How we'll verify this is met]
Source: [Who requested this]
```

## RFP Framework

### RFP Structure

1. **Introduction**
   - Company overview
   - Project background
   - Objectives

2. **Scope of Work**
   - Requirements summary
   - Use cases
   - Integration needs

3. **Vendor Requirements**
   - Company information
   - Product/service details
   - Technical specifications
   - Security/compliance

4. **Evaluation Process**
   - Timeline
   - Evaluation criteria
   - Selection process

5. **Submission Requirements**
   - Response format
   - Deadline
   - Contact information

6. **Terms and Conditions**
   - Confidentiality
   - Proposal validity
   - Contract terms overview

### RFP Questions by Category

#### Company & Stability
- Company founding date and ownership structure
- Annual revenue and growth rate
- Total employees and relevant team size
- Key customer references in our industry
- Funding status (if private)

#### Product & Capability
- How does your solution address [specific use case]?
- Describe your product roadmap for the next 12 months
- What differentiates you from [specific competitor]?
- Provide a technical architecture overview
- List all third-party dependencies

#### Security & Compliance
- Describe your security certifications (SOC 2, ISO 27001, etc.)
- How do you handle data encryption (at rest and in transit)?
- What is your incident response process?
- Provide your data processing agreement
- Describe your business continuity plan

#### Implementation & Support
- Typical implementation timeline and phases
- Resources required from our team
- Training approach and materials
- Support tiers and response times
- Escalation process

#### Pricing
- Detailed pricing breakdown
- Volume discounts available
- Contract term options
- Price protection provisions
- Hidden costs to be aware of

## Scoring Methodology

### Weighted Scoring Matrix

| Category | Weight | Criteria |
|----------|--------|----------|
| **Functional Fit** | 30% | Requirements coverage, ease of use |
| **Technical Fit** | 20% | Architecture, integrations, security |
| **Vendor Viability** | 15% | Company stability, roadmap, support |
| **Pricing/TCO** | 20% | Cost, value, pricing model fit |
| **References** | 15% | Customer feedback, similar use cases |

### Scoring Scale

| Score | Definition |
|-------|------------|
| 5 | Exceeds requirements significantly |
| 4 | Exceeds requirements |
| 3 | Meets requirements |
| 2 | Partially meets requirements |
| 1 | Does not meet requirements |
| 0 | Not addressed / No response |

### Evaluation Matrix Template

| Criteria | Weight | Vendor A | Vendor B | Vendor C |
|----------|--------|----------|----------|----------|
| **Functional Fit** | **30%** | | | |
| Requirement 1 | 10% | 4 | 5 | 3 |
| Requirement 2 | 10% | 3 | 4 | 4 |
| Requirement 3 | 10% | 5 | 3 | 4 |
| **Technical Fit** | **20%** | | | |
| Integration | 10% | 3 | 4 | 5 |
| Security | 10% | 4 | 4 | 4 |
| **Vendor Viability** | **15%** | | | |
| Stability | 8% | 3 | 5 | 4 |
| Support | 7% | 4 | 3 | 4 |
| **Pricing** | **20%** | | | |
| Total Cost | 15% | 4 | 3 | 5 |
| Pricing Model | 5% | 3 | 4 | 4 |
| **References** | **15%** | | | |
| Satisfaction | 8% | 4 | 4 | 3 |
| Similar Use Case | 7% | 3 | 5 | 3 |
| **TOTAL** | **100%** | **3.65** | **3.95** | **3.90** |

## Reference Check Framework

### Reference Request Template

> Subject: Reference request for [Vendor] evaluation
>
> Hi [Contact],
>
> We're evaluating [Vendor] for [use case] and they provided you as a reference. Would you have 20-30 minutes to share your experience?
>
> I'm particularly interested in:
> - Implementation experience
> - Actual vs. promised results
> - Support quality
> - What you'd do differently
>
> Would [date/time] work for a quick call?

### Reference Check Questions

| Category | Questions |
|----------|-----------|
| **Overall** | Would you choose them again? Would you recommend them? |
| **Implementation** | How long did it take? What surprised you? |
| **Product** | Does it work as promised? What doesn't work well? |
| **Support** | How responsive are they? How do they handle issues? |
| **Value** | Are you getting the ROI you expected? |
| **Relationship** | How is communication? Do they act as a partner? |

### Red Flag Detection

| Red Flag | What It May Indicate |
|----------|---------------------|
| Hesitation to provide references | Unhappy customers |
| Only provides recent references | Churn among long-term customers |
| References from different product | Current product untested |
| Executive references only | Users may be unhappy |
| References outside your industry | May not understand your needs |

## Negotiation Preparation

### Negotiation Levers

| Lever | Description | When to Use |
|-------|-------------|-------------|
| **Term length** | Longer term for lower rate | Have budget certainty |
| **Payment terms** | Annual upfront for discount | Have cash |
| **Volume commitment** | Commit to growth for discount | Confident in expansion |
| **Timing** | End of quarter/year | Seller motivated |
| **Reference** | Logo/case study value | Have recognizable brand |
| **Pilot** | Reduced risk start | Uncertain about fit |

### TCO Calculation

Include all costs:
- License/subscription fees
- Implementation/professional services
- Training
- Integration development
- Internal resource time
- Ongoing support/maintenance
- Estimated growth costs

### Contract Negotiation Checklist

| Term | Standard | Watch For |
|------|----------|-----------|
| **Term length** | 12-36 months | Auto-renewal traps |
| **Termination** | 30-60 days notice | Termination penalties |
| **Price increase** | CPI cap | Unlimited increases |
| **SLA** | 99.9% uptime | No SLA credits |
| **Data** | Customer owns | Vendor data rights |
| **Liability** | Mutual, capped | One-sided, uncapped |

## Decision Documentation

### Recommendation Report Structure

1. **Executive Summary**
   - Recommendation
   - Key reasons
   - Investment required

2. **Evaluation Summary**
   - Process overview
   - Vendors evaluated
   - Scoring results

3. **Recommendation Detail**
   - Why this vendor
   - Strengths and risks
   - Mitigations for risks

4. **Comparison**
   - Side-by-side analysis
   - Why not other vendors

5. **Implementation Plan**
   - Timeline
   - Resources
   - Risks

6. **Financial Analysis**
   - TCO comparison
   - ROI projection
   - Budget impact

## Resources

### references/
- **rfp-templates.md** — Industry-specific RFP templates
- **negotiation-tactics.md** — Detailed negotiation strategies
- **due-diligence-checklist.md** — Comprehensive vendor assessment

### assets/
- **scoring-matrix-template.xlsx** — Evaluation spreadsheet
- **rfp-template.docx** — RFP document template
- **recommendation-template.pptx** — Decision presentation