What does "best value" mean in the context of FAR?

In the context of the Federal Acquisition Regulation (FAR), "best value" refers to a procurement approach that seeks to achieve the most favorable outcome by evaluating both cost and non-cost factors in the selection of a contractor. This means that while price remains a critical element, the overall value is assessed by balancing cost against other important criteria such as technical capability, past performance, and other relevant factors that contribute to the quality and effectiveness of the proposed solution.

This approach allows contracting officers to consider proposals that may not have the lowest price, but offer superior quality, innovative solutions, or better performance efficiencies that can result in long-term benefits for the government. By striving for "best value," the government aims to ensure that the contracts awarded deliver optimal performance and meet agency needs effectively.

Other options can represent different approaches but do not encapsulate the comprehensive evaluation inherent in "best value." Focusing solely on the lowest price, highest quality without cost consideration, or past performance ratings alone does not align with the best value philosophy, which requires a more holistic assessment of proposals.