Which vendor evaluation technique focuses on functionality and performance at a reasonable cost?

The technique that focuses on functionality and performance at a reasonable cost is centered around the concept of value. This approach evaluates vendors based on how well their offerings meet the project's requirements in terms of performance and functionality while ensuring that the costs remain justified and reasonable. The key idea is to strike a balance between quality and expense, identifying vendors that provide the maximum benefit or value for the price, thereby ensuring that the project can achieve its goals without unnecessary overspending.

In contrast, capacity refers to the ability of a vendor to meet production needs, which doesn’t directly address the balance of cost versus performance. Reference evaluations involve checking the experiences of past clients, which may inform decisions but do not directly assess the cost-performance ratio. Cost-benefit analysis typically focuses on understanding the financial implications of different options rather than measuring functional performance against reasonable pricing. Thus, value is the most relevant approach to ensure that a vendor not only meets needs but does so efficiently and cost-effectively.