Best Value

Full Definition

Best value is a source selection approach defined in FAR Part 15 where the government evaluates proposals based on multiple factors — typically technical capability, past performance, management approach, and price — to determine which offer provides the greatest overall benefit. Unlike LPTA procurements where the lowest price wins, best value allows the government to pay more for a higher-rated technical proposal when the benefits justify the additional cost. The solicitation must clearly state the relative importance of evaluation factors. Common rating schemes include adjectival ratings (Outstanding, Good, Acceptable, Marginal, Unacceptable) or color ratings (Blue, Green, Yellow, Red). Evaluators document their assessments in a Source Selection Evaluation Board (SSEB) report, and the Source Selection Authority (SSA) makes the final award decision based on the integrated assessment.

Why It Matters

Best value procurements give small businesses with strong technical capabilities a significant advantage over low-cost competitors who may lack depth of experience. To win, carefully analyze the evaluation criteria and their relative weights — if technical is more important than price, invest heavily in your technical volume. Write directly to each evaluation factor and subfactor, addressing them explicitly and providing evidence for every claim. Use past performance examples that closely mirror the requirement. Price realism analyses may be conducted, so ensure your pricing is defensible and not artificially low. Attend industry days and ask questions about evaluation priorities. Proposal compliance matrices help ensure nothing is missed. Best value is the preferred evaluation method for complex services procurements.

Example

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