What is Best Value?
Best Value Procurement (BVP) is about a different way of finding and keeping a collaboration between client and vendor. It is more than a procurement method, it is a vision, a shift in paradigm and an ideal environment in which experts can add value and minimize cost.
The vendor takes the lead. The role of the client moves from being an expert to being able to recognize an expert. By using the expertise of the vendor, risk is limited and a transparent environment is created.
The philosophy of Best Value is at odds with the prevailing purchasing philosophy where mostly management, direct and control is applied. Best Value is based on the expertise of vendors, focusing on a careful preliminary stage rather than on verification at a later stage.
An expert is able to explain something clearly and concisely to a non-expert. Instead of detailed documention, vendors are invited to submit three concise documents (2 pages each) to explain what they can, why they can do it and what risks and opportunities they see. In order to demonstrate this, metrics are used: figures that show the performance of an organization. Metrics are specific to each project, easy to understand and are not technical. Documents that are specific, logical, simple and include metrics speak for themselves. It is therefore easy for the selection committee to assess the anonymous documents.
The vendor takes the lead over the project. The changed relationship between client and vendor may take some time getting used to. It is important not to fall back in the old ways of managing, directing and controlling. The Best Value vendor becomes a role model and can help the client. The client, in turn, supports and facilitates the vendor so that the vendor can do its job to their best ability. The success of the project relies on maintaining the Best Value principles.
The Best Value principles are applicable in both the private sector and the public sector. Best Value Procurement is a search to find the best expert.
Video - Dean Kashiwagi: Best Value Philopsophy
Video - Dean Kashiwagi: Basis van Best Value