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Best value procurement

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Best value procurement is a procurement system that looks at factors other than only price, such as quality and expertise, when selecting vendors or contractors.[1][2][3]

In a best value system, a contractor or vendor is selected through a process of researching the vendors or contractors before a detailed project plan is made.[4] Typically values are assigned to factors such as price, past performance, schedule, and vision.[5] These values are tabulated for each potential vendor or contractor and one will come out on top.[4] This system is claimed to be beneficial because it needs less decision making, prepares for the future, and minimizes risk.[5] This system has been implemented by some governments, such as that of the United Kingdom and the Netherlands.[6] One of the most important aspects of best value procurement is looking at past performance.[7] If a client is looking to build a five million dollar building, it is important to see if potential vendors have completed projects on such a scale. This will prevent clients from selecting vendors based on a low bid.[8]

Best value procurement is allowed for US federal government projects under the Federal Acquisition Regulation and 10 USC § 2304.[9]

References

  1. ^ "Best-Value Procurement Manual." Minnesota Department of Transportation. N.p., n.d. Web. 2 May 2013.<http://www.dot.state.mn.us/const/tools/docs/BestValueGuide-FinalMarch2012.pdf>
  2. ^ Kelleher, Jr., Thomas J.; Abernathy, IV, Thomas E.; Bell, Jr., Hubert J.; Reed, Steven L, eds. (2010). Smith, Currie & Hancock's Federal Government Construction Contracts: A Practical Guide for the Industry Professional. John Wiley & Sons. pp. 89–. ISBN 9780470539767.
  3. ^ The Facility Management Handbook Chapter 23: Operations and Maintenance–Contracting and Types of Contracts. AMACOM Div American Mgmt Assn. pp. 11–. ISBN 9780814430682.
  4. ^ a b "University of Alberta Transforms RFPs from Reactive to Proactive." The Legal Edge, n.d. Web. 30 Apr. 2013.
  5. ^ a b http://pbsrg.com/
  6. ^ http://www.bestvalueeurope.com
  7. ^ "Journal for the Advancement of Performance Information & Value (JAPIV)." New CIB Encouraged Journal, n.d. Web. 30 Apr. 2013.
  8. ^ "Crossroads: The FM of Today vs The FM of Tomorrow." IFMA San Francisco Chapter. N.p., n.d. Web. 02 May 2013. <[1][dead link]>
  9. ^ Jr., Thomas J. Kelleher,; LLP, Smith, Currie & Hancock (2009-01-27). Smith, Currie & Hancock's Common Sense Construction Law: A Practical Guide for the Construction Professional. John Wiley & Sons. pp. 63–. ISBN 9780470231364. Retrieved 26 May 2013.{{cite book}}: CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link)
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