CBAP · Question #545
An insurance company wants to implement a business intelligence solution to consolidate data from various different internal system to provide a better understanding of their customer base. A business
The correct answer is C. Company A. Company A's tender response fully addressed all specified evaluation criteria, making it the strongest candidate among the shortlisted vendors.
Question
An insurance company wants to implement a business intelligence solution to consolidate data from various different internal system to provide a better understanding of their customer base. A business analysis (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implemention partners. Among other information the business analysis request the following:
- Licensing costs for year 0 based on needing 1 Central processing Unit (CPU) license
- Licensing costs for specific user types such as Report Creators Online Analytical Process
(OLAO) user and Power users
- Predicted licensing costs for renewing in Years 1 and 2
- Full implementation costs
After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:
The Insurance company has a maximum bucket of $310,000 for the entire to implementation and operation over the first three years. Which vendor or vendors meet that criteria?
Exhibit
Options
- ABoth companies B and C
- BCompany B
- CCompany A
- DBoth companies A and C
How the community answered
(17 responses)- A6% (1)
- B6% (1)
- C76% (13)
- D12% (2)
Why each option
Company A's tender response fully addressed all specified evaluation criteria, making it the strongest candidate among the shortlisted vendors.
Companies B and C individually failed to meet all stated tender requirements, and selecting both as a combined recommendation does not align with a standard single-vendor procurement decision.
Company B did not fully address all criteria outlined in the tender, which disqualifies it as the sole recommended vendor under the stated evaluation framework.
Company A provided complete and transparent responses to every item requested in the tender, including Year 0 CPU licensing costs, pricing for all specified user types (Report Creators, OLAP users, Power Users), projected renewal costs for Years 1 and 2, and full implementation costs. Satisfying all stated criteria without gaps is the primary indicator of a vendor's ability to deliver a predictable, well-scoped engagement. A complete bid reduces risk and enables meaningful apples-to-apples comparison during shortlisting.
Pairing Company A with Company C is unnecessary when Company A alone satisfies all requirements, and a dual-vendor recommendation would complicate contracting and accountability.
Concept tested: Vendor evaluation and tender response assessment
Source: https://www.iiba.org/standards-and-resources/babok/
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