What does the term “best value” mean in federal contracting?

In federal contracting, the term "best value" refers to a selection process that balances both price and non-price factors when evaluating proposals. This approach allows contracting officers to assess not just the cost associated with a proposal, but also the quality, technical merit, past performance, and other relevant criteria that contribute to the overall value of the procurement.

The best value concept recognizes that in many situations, the lowest price does not necessarily equate to the best outcome for the government. By considering a combination of factors, contracting officers can make more informed decisions that lead to higher quality outcomes and better overall performance on contracts. This method promotes a holistic evaluation to achieve the most advantageous procurement for the government.

Aspects such as technical approach, schedule, and management capability may be weighted according to the needs of the project, making the decision-making process more inclusive and strategic. This contrasts sharply with other approaches that may focus solely on price or exclude important qualitative measures altogether.