Best value procurement is a procurement system that looks at factors other than only price, such as quality and expertise, when selecting vendors or contractors.
In a best value system, a contractor or vendor is selected through a process of researching the vendors or contractors before a detailed project plan is made. Typically values are assigned to factors such as price, past performance, schedule, and vision. These values are tabulated for each potential vendor or contractor and one will come out on top. This system is claimed to be beneficial because it needs less decision making, prepares for the future, and minimizes risk. This system has been implemented by some governments, such as that of the United Kingdom and the Netherlands. One of the most important aspects of best value procurement is looking at past performance. If a client is looking to build a five million dollar building, it is important to see if potential vendors have completed projects on such a scale. This will prevent clients from selecting vendors based on a low bid.
Best value procurement is allowed for US federal government projects under the Federal Acquisition Regulation and 10 USC ยง 2304.