BEST VALUE PROCUREMENT

What is BVP? A procurement process where price and other key factors can be considered in the evaluation and selection process to minimize impacts and enhance the long-term performance and value of construction. Traditionally, price has been the sole factor considered in selection of construction contractors by state departments of tran- sportation. Best-value procurement allows other factors, such as qualifications, schedule, quality, and performance-based criteria, to be used in evaluation and selection. MnDOT and the FHWA do not consider the use of A+B, lane rental, or incentive/disincentives as best-value.

When to use Best Value? Best value procurement is most useful when a project has unique objectives or challenges. That may be difficult to meet using traditional low-bid procurement The series of questions shown in the checklist below can be used to help determine if a project is a good candidate. If the answer is “yes” to most of the questions, the project may be suitable for best value procurement. If the answer is “no” to some of the questions, the project may still be a good candidate, but careful consideration should be given to whether or not those items with a “no” answer can be successfully addressed.

Determine Best Value Criteria Determine the pass/fail best value evaluation criteria that will be used in the procurement. Evaluation criteria should be based on the elements that will bring the most value to the project. The following categories of evaluation criteria can be used with this approach: Qualifications of Personnel – Certain work tasks may benefit from personnel with specific licensure, training, or certifications. Establish pass-fail criteria based on the needs of the project. Experience of Personnel on Similar Projects – The personnel that will perform the work on the project should have experience on similar projects. Establish pass-fail criteria requiring minimum experience levels. Experience of Contractor on Similar Projects – Experience with projects of a similar size, type or complexity may benefit the project. Establish pass-fail criteria requiring minimum experience levels. Availability of Key Personnel, Equipment or Materials – Establish the required personnel, equipment or materials that will be necessary to successfully complete the project. Contractor will indicate availability of these items in the proposal. Ability to Meet Completion Date.