Best value determination

lotus,

Is there a problem with a best value determination being subjective?

Quality, price and delivery schedule come to mind as factors to consider. Procurements may differ from one another as to importance and risk.

Value is often defined as Quality divided by Cost.

More nuanced, Value = Benefits (Perceived Quality X Perceived Service) / Risks (Cost X Time)

Still has subjective components but comparable...and math!

A best value decision can be wholly subjective, with no math whatsoever.  It need not be quantified or dollarized.  Or, it can be anywhere else on a continuum towards wholly objective.  It depends on how the solicitation is structured.

On 9/16/2022 at 11:43 AM, lotus said:

Most procurements use an evaluation that relies on a best value determination.  Value seems unduly subjective.  Has anyone come up with a good way to establish and measure value, so to know which value is best?

Depends entirely on the requirement.  That’s the beauty of being a Contracting Officer. A CO has the sole discretion of determining Best Value.

On 9/16/2022 at 8:43 AM, lotus said:

Has anyone come up with a good way to establish and measure value, so to know which value is best?

According to von Winterfeldt and Edwards (no relation to me) in Decision Analysis and Behavioral Research (Cambridge University Press, 1986):