Position Paper: Best Value in Government Procurement
Achieving best value is an essential goal of procurement practices. This position paper defines the NIGP understanding of what "Best Value Procurement" means and identifies steps organizations can take to articulate best value for their organization and how to achieve it. "Value" combines several elements, including identifying what is important and how much is important. Describing the value of a procured good or service includes several procurement considerations, such as the reliability of suppliers, prioritizing preferences for types of businesses (veteran-owned, minority-owned, small businesses, etc.), and identifying all costs through a cost-life analysis. This paper also describes the concept of a best value policy (BVP), which provides a framework for organizations to use in decision making, and it includes standards for accountability and a series of questions for procurement professionals to answer when determining what best value means for a particular situation.