Glossary term
Best Value Tradeoff
A source selection process permitting award to other than the lowest-priced offeror when superior non-price factors justify the premium.
Under a tradeoff process the government may pay more for a technically superior proposal, provided the source selection decision documents why the additional benefit is worth the additional cost. Section M states the relative importance of price versus non-price factors — read it carefully, because "technical significantly more important than price" and "approximately equal" call for entirely different bidding strategies.
Categories
- evaluation
Related terms
- Lowest Price Technically Acceptable (LPTA)A source selection process awarding to the cheapest proposal that meets stated minimum requirements.
- Section MThe "Evaluation Factors for Award" section of an RFP that specifies how proposals will be scored.
- Source SelectionThe formal process by which an agency evaluates proposals and chooses an awardee.