How is ‘best value’ defined in the negotiation context of FAR Part 15, as used in source selection?

• A. The lowest price regardless of other factors.
• B. The best value is the proposal offering the best balance of price and other evaluation factors.
• C. The best value is determined solely by the technical score.
• D. The best value is the most expensive option.

Answer: (B)

Best value in a negotiation under FAR Part 15 means selecting the proposal that delivers the greatest overall value to the government when you weigh price against non-price evaluation factors such as technical merit, past performance, and risk. It’s not simply the lowest price; a proposal with a higher price can be preferred if its superior technical approach, lower risk, or better anticipated performance provides greater overall value. Evaluators rate each proposal on the factors and may conduct discussions to improve them, then perform a tradeoff to choose the option that offers the best balance of price and other factors to meet the government’s objectives.