SPRS provides a procurement risk assessment in three areas:
- Price – over-/under-bid risk based on previous buys since 2010, escalated for inflation
- Item – identified application or safety criticality; potential for counterfeiting, nonconforming material, diminishing sources of supply
- Supplier – a Standalone way to see detailed Supplier Risk
The Price Risk Assessment calculates the Historical Price (escalated for inflation) -- what an item should cost, based on previous buys. It is the average of all purchases reported since 2010, excluding certain extremely high prices (outliers), and escalated by Bureau of Labor Statistics inflation indexes.
Bids are scored by their difference from Historical Price.
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