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outgrown its I.T infrastructure. In fact, the company's current infrastructure is unable to handle the terabytes of music download each day. As a result, the company has decided to outsource its music download infrastructure to a third party content management vendor. The content management vendor will host the compressed music files across its geographically distributed web server farms, and handle all the logistics with music file downloads and data streaming. On your qualified sellers list, you have identified one potential vendor MusikCM. Your procurement department is conducting an independent estimate of costs of the proposals in order to compare the vendor prices. However, your procurement department has identified a large difference between the independent estimate and the proposed vendor cost. In which process is this taking place? A. Plan contracting B. Request seller responses C. Contract administration D. Select sellers E. Plan purchases and acquisition
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As per the given scenario, my answer is B. Request seller response from selected seller to revise its price based on the current market price and also to renegotiate on its given price adjustment.
Can you please see the following explanation in related to the above answer.
In order to be in line with the current price we should have to have a market survey/assessment. .This is because unless we don't have adequate current market price knowledge, we couldn't estimate our price. In the process we should have to consider not only on single service price but also on the following other procurement related points. Soon after having a current market price and supplier availability, develop TOR (Terms of reference) so that invite potential service provider based on the following selection criteria.
1- Evaluation of supplier financial and organization stability.
2- Service provider ability to comply with technical, functional and performance specification.
3- Service delivery schedule and cost factor that must be ensure the total service procurement process are to be in line with BVM (Best Value for money) manner.
4- Investigate supplier performance record and past reputation.
D. Select sellers ----------------
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