In procurement contracts, what does "best value" refer to?

"Best value" in the context of procurement contracts refers to selecting a contractor or supplier based on a comprehensive assessment that includes price, quality, and overall value offered. This approach recognizes that merely choosing the lowest cost option may not always yield the most advantageous outcome for the project or organization.

By focusing on best value, decision-makers consider factors such as the quality of goods or services, the reliability of the supplier, and additional benefits that may add value beyond just the financial cost. This method ensures that the procurement decision supports both immediate financial constraints and long-term strategic goals, ultimately leading to better performance and satisfaction with the final result.

While elements such as cost, quality, and even the experience of contractors can all play roles in procurement decisions, selecting based on the best value provides a more holistic view that maximizes resource use and secures the best outcomes for the organization.