Service Provider Selection

Action Summary

Management should:

  • Evaluate service provider proposals in light of the institution's needs, including any differences between the institution's solicitation and the service provider proposal;
  • Perform due diligence on the prospective service providers;
  • Ensure that selection of affiliated parties as service providers is done at arms length in accordance with regulations and guidance issued by the institution's primary regulator; and
  • Evaluate foreign-based third-party service providers in light of the guidance found in this section and in Appendix C, Foreign-Based Third-Party Service Providers.

After identifying the work to be performed and the necessary controls, a financial institution solicits responses from prospective service providers. The primary tool for the solicitation is the Request for Proposal (RFP). The RFP also supports subsequent contract negotiations.


 

Previous Section
Requirements Definition
Next Section
Request for Proposal