Quick Answer: What Does Best Value Mean In Government Contracting?

What mean trade off?

A trade-off (or tradeoff) is a situational decision that involves diminishing or losing one quality, quantity, or property of a set or design in return for gains in other aspects.

In simple terms, a tradeoff is where one thing increases, and another must decrease..

What are trade offs in business?

Trade-offs occur when activities are incompatible. Simply put, a trade-off means that more of one thing necessitates less of another.

What is the meaning of best value?

Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements. In this context: cost means consideration of the whole life cost.

What is best value trade off?

Best value tradeoff source selection procedures are based on the concept of using a methodology for award that represents the greatest value to the Government, not necessarily the lowest cost or price or the highest technically rated offeror, based on the evaluation of cost or price and other factors specified in the …

What is price performance tradeoff?

Tradeoff – Price/Technical. In a best value procurement, it is the function of the source selection official to perform a price/non-price factor tradeoff, that is, to determine whether one proposal’s superiority under the non-price factor (or factors) is worth a higher price.

What is a government PWS?

The Performance Work Statement (PWS) is a Statement of Work (SOW) for Performance-Based Acquisitions that clearly describes the performance objectives and standards that are expected of the contractor. When a contract is awarded, the PWS is legally binding upon the contractor and the U.S. Government.

What is the best value continuum?

The Best Value Continuum ranges from acquisitions that prioritize cost or price over technical factors (lowest price technically acceptable/LPTA), to acquisitions that prioritize technical factors over cost or price (tradeoff).

What is a tradeoff in government contracting?

(a) A tradeoff process is appropriate when it may be in the best interest of the Government to consider award to other than the lowest priced offeror or other than the highest technically rated offeror.

Are government contracts worth it?

If you or your business can meet the government’s requirements, you could end up with a healthy revenue stream. … Still, others have more government work than they can handle and long for something else. While government contracting can be an excellent way to start or sustain a business, it’s not without its downsides.

Why is value for money important?

It is about ensuring that the business is efficient, effective, and economical. This is a measure of productivity – how much you get out in relation to what you put in. It is the efficiency of converting resources (inputs) into results (outputs). This measures the impact of obtaining value for money.

What is lowest price technically acceptable?

15.101-2 Lowest price technically acceptable source selection process. (a) The lowest price technically acceptable source selection process is appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price.