System and method of assessing and rating vendor risk and pricing of technology delivery insurance
OwnerNamita Kansalinventor
Life of this patent
Estimating the term…
Abstract
A method and system for providing a standardization and commoditizing the process of technology contracts and creating method for assessing, scoring, ranking and rating technology vendors for the purpose of comparing vendor bids on a project and for structuring and pricing insurance/surety contracts. Intrinsic and two-way vendor ratings are established for each of the vendors in a particular project. This two-way rating is used to provide a risk adjustment to the nominal bid of each of the vendors. The two-way rating is also utilized to structure and calculate an insurance premium based upon the probability that the vendor would fail/default on the delivery of a technology project.
Claims12
A method for comparing bids utilizing a computer platform for the purpose of risk-adjustment received by a customer from a plurality of vendors for a particular technology contract, comprising the steps of utilizing said computer platform for processing information as follows:
- calculating an intrinsic rating P(k) for each of the vendors based upon the strength and performance of each of the vendors;
- calculating a component Q(x,k) for each vendor which quantifies the ability/suitability of a vendor to deliver on a “specific” component of said technology contract or a Request For Proposal (REP) based on the vendor's past performance;
- calculating a component Q(x) which is the summation of the Q(x,k) and P(k);
- determining an extrinsic two-way rating Vendor Rating (VR) of each of the plurality of vendors using the equation:
- Two-way VR=[Q(x, k)×P(k)]/Q(x)
- receiving nominal bids from the plurality of vendors for a particular technology contract;
- adjusting for each vendor each of said nominal bids of each of the plurality of vendors utilizing each of the vendors two-way ratings to produce a risk-adjusted bid for each vendor;
- and
- comparing the risk-adjusted bids of each of said vendors.
A method for comparing bids on the computer platform for the purpose of risk adjustment received by a customer from a plurality of vendors for a particular technology contract, comprising the steps of utilizing said computer platform for processing information as follows:
- receiving nominal bids from said plurality of vendors for said particular technology contract including cost and time of delivery;
- determining a rating for each of the vendors reflecting whether each of the vendor's nominal bid will be timely and will not exceed the cost of said nominal bid;
- utilizing said rating for each of the vendors to determine an adjusted bid for each of the vendors;
- calculating an intrinsic rating P(k) for each of the vendors based upon the general performance of each of the vendors;
- calculating a component Q(x,k) for each vendor which quantifies the ability/suitability of a vendor to deliver on a “specific” component of the technology contract or Request For Proposal (RFP) based on the vendors past performance;
- calculating a component Q(x) which is the summation of the Q(x,k) and P(k);
- adjusting for each vendor each of said nominal bids of each of said plurality of vendors utilizing each of said vendors two-way ratings to produce a risk-adjusted bid for each vendor;
- determining an extrinsic two-way rating Vendor Rating (VR) of each of the plurality of vendors utilizing the equation:
- VR=[Q(x,k)×P(k)]/Q(x)
- and, comparing he risk-adjusted bids of each of said vendors.
Dependencies are inferred from the claim text.