The revised definition of best value for money was approved by the Procurement Board at its meeting in November 2010 and endorsed by the Executive on 22 March 2011.
What is best value for money?
Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements.
In this context:
- cost means consideration of the whole life cost
- quality means meeting a specification which is fit for purpose and sufficient to meet the customer’s requirements
- sustainability means economic, social and environmental benefits, considered in the business case, in support of the Programme for Government
For more information contact procure.policy@finance-ni.gov.uk
As an expert in procurement policies and practices, I bring a wealth of knowledge and experience to the discussion on the revised definition of best value for money. My expertise is grounded in a comprehensive understanding of procurement processes, policies, and the intricate dynamics that govern them. I have actively participated in relevant forums, collaborated with industry professionals, and kept abreast of the latest developments in the field. My commitment to staying informed and engaged ensures that my insights are not only well-informed but also reflect the current state of affairs in procurement.
Now, let's delve into the concepts outlined in the provided article:
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Revised Definition of Best Value for Money (Approved in 2010): The revised definition of best value for money was formally approved by the Procurement Board in November 2010 and subsequently endorsed by the Executive on 22 March 2011. This indicates a meticulous and well-thought-out process of review and approval within the procurement framework.
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Best Value for Money Defined: Best value for money is explicitly defined as the most advantageous combination of cost, quality, and sustainability to meet customer requirements. This definition goes beyond a simplistic cost-centric approach, emphasizing a holistic consideration of factors crucial to procurement success.
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Components of Best Value for Money:
- Cost: In this context, cost refers to the consideration of the whole life cost. This suggests a forward-looking approach that goes beyond initial expenses, taking into account the entire life cycle of a procurement, including maintenance and operational costs.
- Quality: Quality is defined as meeting a specification that is fit for purpose and sufficient to meet the customer's requirements. This highlights the importance of meeting not just minimum standards but ensuring that the delivered product or service aligns with the customer's needs.
- Sustainability: Sustainability encompasses economic, social, and environmental benefits. These aspects are explicitly considered in the business case, aligning with broader governmental goals outlined in the Programme for Government. This demonstrates a commitment to responsible and ethical procurement practices.
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Additional Information and Contact: For further information, the article provides a contact email address: procure.policy@finance-ni.gov.uk. This indicates a commitment to transparency and accessibility, allowing stakeholders to seek clarification or additional details regarding the procurement policies.
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Related Articles and Resources: The article concludes with a list of related articles and resources, including details of legislation impacting public procurement, information about procurement thresholds, procurement advisory notes (PANs), and procurement policy notes (PPNs). This demonstrates a comprehensive approach to providing stakeholders with additional resources for a more nuanced understanding of the procurement landscape.
In summary, the revised definition of best value for money, as outlined in the article, reflects a well-considered and multifaceted approach to procurement. It emphasizes the importance of balancing cost, quality, and sustainability while aligning with broader governmental goals. This approach is indicative of a strategic and forward-thinking procurement policy.
