What is the meaning of “Best Value” in procurement according to FAR?

“Best Value” in procurement, as defined by the Federal Acquisition Regulation (FAR), refers to a source selection process that considers not just the cost but also non-price factors in order to determine the best overall solution for the government’s needs. This approach allows contracting officers to assess proposals based on a combination of factors such as technical merit, past performance, and other relevant criteria alongside pricing.

The rationale for using a best value approach is to ensure that the government receives not only the most economical offers but also those that meet the mission requirements effectively and efficiently. By weighing non-price factors, this method allows for a more comprehensive evaluation of the proposals, which can lead to better performance and outcomes over the life of the contract.

The other options focus solely on either price or methods that do not encompass the full range of considerations that the best value approach entails. Therefore, embracing a holistic view that incorporates both cost and qualitative factors leads to more informed and strategic decision-making in procurement.