The Role of Best Value in Federal Purchasing

What does the term "Best Value" mean to a sales person selling in the federal market? In short, it means that federal buyers do not have to select the vendor with the lowest price. It also means that the sales person can sell features and benefits and feel reasonably comfortable that they won't be low-balled.

The Feral Acquisition Regulations (FAR) give federal buyers flexibility and considerable latitude in making a purchasing decision. Under the FAR, the term "best value" means the expected outcome of an acquisition provides the greatest overall benefit in response to the requirement. In short, the rules give contracting officers the latitude to:

  1. Go with a higher price based on best value considerations, with no restrictions on what best value considerations have to be. Anything can be considered a best value factor as long as it makes sense and has cost and performance implications.

  2. Consider time and the cost of the procurement itself when determining how to make a buy.

The government holds all of the cards and can do just about anything it wants in making a buy as long as it appears to be cost effective and in the best interests of the taxpayer. Most buyers make rational decisions, are not out to harm vendors, and do not like to be viewed as unfair. The downside to federal contracting is that if you feel you have been wronged, there is very little you can do about it. You can protest using a formal process if you think procurement rules have been violated but the chances of winning a protest are slim to none.

On the other hand, don't be lulled into thinking that price is not a major factor in federal purchasing decisions. Federal contracting officers and end users have to justify their best value decisions and price is still a major factor in who gets the contract.


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