Best Value Procurement Explained

Many people assume government contracts always go to the lowest bidder. In reality, Canadian governments increasingly use "best value" procurement — a method that evaluates multiple factors beyond just price. This guide explains what best value procurement is, how it works, and how your business can win contracts by demonstrating superior value rather than just the lowest price.

Best value procurement is a purchasing method where the buyer evaluates bids based on a combination of price and non-price factors. The goal is to get the best overall outcome, not just the cheapest option.

Non-price factors commonly evaluated:

• ✓Technical approach: Quality and feasibility of the proposed solution
• ✓Past performance: Experience delivering similar projects
• ✓Team qualifications: Expertise of key personnel
• ✓Innovation: Creative or value-added elements
• ✓Risk: Potential risks and mitigation strategies
• ✓Schedule: Ability to deliver on time
• ✓Social value: Indigenous participation, sustainability, diversity[/Checklist

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The best value evaluation process typically follows this structure:

1. **The RFP publishes evaluation criteria** with weights (e.g., Technical 70%, Price 30%).

2. **The technical evaluation team scores** each proposal against the technical criteria.

3. **The price is scored** based on the pricing formula (e.g., lowest price gets maximum points, others get proportional points).

4. **The combined score is calculated**: (Technical Score × Technical Weight) + (Price Score × Price Weight).

5. **The bidder with the highest combined score wins**.

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To succeed in best value procurement:

1. **Understand the weightings**: Know what matters most and focus your effort there.

2. **Differentiate your technical approach**: Show why your solution is superior.

3. **Provide compelling evidence**: Use case studies, client references, and quantifiable results.

4. **Demonstrate understanding**: Show deep understanding of the buyer's needs and context.

5. **Address total cost of ownership**: Show how your solution may cost less over the long term.

6. **Highlight social value**: If criteria include Indigenous participation or sustainability, address them explicitly.

• ✓Invest more effort in technical proposal than pricing if technical weight is higher
• ✓Use the compliance matrix approach to ensure every criterion is addressed
• ✓Provide specific examples, not generic statements
• ✓Quantify your claims where possible
• ✓Request debriefs to understand how your value proposition compared[/Checklist

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Best value procurement evaluates both price and non-price factors to achieve the best overall outcome. It is increasingly common in Canadian government procurement, especially for complex services. To win on value, understand the evaluation weightings, differentiate your technical approach, provide compelling evidence, and address all evaluation criteria explicitly. Use ContractFinder.ca to find opportunities where your value proposition can shine.