Best-Value Source Selection (Best Value)
A federal evaluation method where the agency considers price and non-price factors together to select the offer that represents the best overall value — not necessarily the cheapest.
Definition
Defined in FAR 15.101, best-value is the default evaluation method for federal RFPs above the SAT. The agency scores each proposal on technical approach, past performance, management plan, and price. Two approaches are common: (1) Lowest Price Technically Acceptable (LPTA) — the agency sets technical thresholds, screens out non-compliant proposals, then awards to the lowest-priced remaining offer; (2) Tradeoff — the agency explicitly considers whether a higher-priced offer with stronger technical merit is worth the price difference.
When it applies
For vendors, best-value contracts reward differentiation. You don't always need to be the cheapest. The Source Selection Decision Document explains the tradeoff and is subject to bid-protest review at GAO.