Best Value Procurement - The 4 Phases
Best Value Procurement tenders are focussed on identifying and utilizing the expertise of the supplier. This expertise is demonstrated using dominant information (metrics) showing performance, but also risks outside of the suppliers control and value added components related to the project and services offered. Best Value can be divided into four phases. We would like to briefly explain these phases and how we support in the bidding process.
Buyers can provide full roadmaps and checklists with requirements on how projects should be executed. This seems not logic as the buyer is not the expert . Therefore the roles are reversed at a Best Value tender. The suppliers themselves identify and utilize their expertise in order to achieve the best results. By thinking proactively with the client, having an transparant approach an expert supplier can make the best plan to deliver the project and services within time and budget at a high client satisfaction. Limiting the buyers requirement but delivering the desired project goals from the buyer. This is the goal of the Best Value approach. In order to win a Best Value tender, the next 4 phases must be completed successfully.
Best Value Procurement - Phase 1 - Preparation Phase
Best Value procurement phase 1 - The client sets the project goals to be achieved. The road to this must be elaborated by the expert supplier. In the first phase, the client is going to explain the tender process. Among other things, one might think of making a schedule, inviting and explaining supplier about the Best Value approach through a pre-proposal meeting. The client should educate all involved parties during this phase.
Best Value Procurement - Phase 2 - Selection Phase
Best Value procurement phase 2 - A first selection is already being made in this phase. It is all about the search for the Best Value at the lowest costs. Often the emphasis will be on quality and performance. At this stage, the low bid suppliers will drop off and the potential suppliers who display the best quality will make the most of the opportunity to continue in the process. In the selection phase. There is a search by the client for performance information (metrics) of the suppliers, the risks and the value added components. The suppliers in this phase should provide dominant information through quality documents: the level of expertise document, risk and value added assessment.
An interview with usually two key personnel team members of the supplier is part of this phase. This is for example a project manager. The interviews will focus on details within the project and services needed to achieve the project goals. It is therefore important your experts who are well informed about the project are involved. As a supplier you are therefore committed to actively engaging your experts in drafting the quality documents and submittal of your bid. The interview is often a major factor in winning the tender.
Best Value Procurement - Phase 3 - Clarification Phase
Best Value procurement phase 3 - In this phase, the contractor will work out the plans into the details and takes a leading role doing so. In the clarification phase it is shown that the contractor is the right company for the job. Not only is it explained in detail what the plan is, it also explains how to create transparency in delivering the services. The results and progress must be measurable. The client must be convinced that the risks are being mitigated. By having all the aspects in this phase, potential value added components can be used and all risks are already mitigated at an early stage.
Best Value Procurement - Phase 4 - Execution Phase
Best Value procurement phase 4 - In the execution phase the services need to be delivered. The project has been awarded and it is time to realize the plan made. Based on a detailed planning, a start can be made. The client can measure progress and quality based on performance indicators and the weekly risk reporting. Need help with Best Value Procurement tenders? Contact us now!
For more information about the 4 phases of Best Value, you can also Download e-book or take a look at the knowledge lab on this site.