Best value tradeoff
Also called: Tradeoff process, Best value continuum
Updated
What is Best value tradeoff?
A best value tradeoff is a source selection method in which the government may award to an offeror that is not the lowest priced or the highest rated, when the benefits of a higher-priced proposal are worth the extra cost. The solicitation states the factors and how much they matter relative to price.
How the tradeoff process works
Best value is the outcome the government seeks in every buy (FAR 2.101), and FAR 15.101 describes a continuum of ways to get it. At one end is LPTA; the other is the tradeoff process in FAR 15.101-1, used when it may be in the government's interest to consider award to other than the lowest-priced or highest technically rated offeror.
The solicitation must state the evaluation factors and whether the non-price factors, combined, are significantly more important than, approximately equal to, or significantly less important than price. The source selection authority then compares the proposals and documents why any extra benefit is worth any extra price.
How to write for a tradeoff
Benefits count only if the evaluator can see them and see why they matter. State each strength, tie it to the factor and the customer's need, and prove it with past performance or data. Clear discriminators make it easier for the agency to justify paying for your proposal.
Common mistakes
Assuming quality will be paid for without showing its value, offering extras the customer does not care about, and pricing high without strengths strong enough to support the tradeoff.
Best value tradeoff in ProposalWorkspace
ProposalWorkspace's RFP analysis reports how the bid will be judged, including the evaluation and basis-of-award terms with page citations, and the Capture & Win Strategy canvas ties each win theme to a Section M factor.
Best value tradeoff: questions and answers
What does best value mean in government contracting?
The expected outcome that gives the greatest overall benefit for the requirement (FAR 2.101). Agencies reach it through a tradeoff process or through lowest price technically acceptable, depending on the buy.
Can the government pay more for a better proposal?
Yes, under a tradeoff process, if the solicitation allows it and the source selection authority documents that the benefits merit the additional cost (FAR 15.101-1).
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