What does 'best value' mean in the context of contract awards?

'Best value' in the context of contract awards refers to the approach that evaluates both price and non-price factors when making a decision. This means that while cost is an important consideration, other elements such as the quality of the goods or services, the qualifications and past performance of the vendor, and the overall value they bring to the contract are also taken into account.

This comprehensive evaluation is designed to ensure that the selected contractor can not only meet the basic financial criteria but also deliver effective, efficient, and timely results that align with the project requirements and goals. By balancing both price and qualitative factors, the 'best value' approach helps to foster better outcomes for the contracting entity, ensuring that the chosen bid provides the most advantageous combination for the project at hand.

This assessment strategy is particularly important in complex projects where the lowest bid may not necessarily equate to the best overall solution. It encourages more competitive and innovative proposals, ultimately benefiting the organization that is awarding the contract.