Best Value Procurement
BVP stands for ‘Best Value Procurement’ (also called ‘Performance Procurement’), a procurement method for which several aspects differ significantly from any ‘normal’ procurement project. The most important differences can be read below:
- BVP's basic principle is the optimum use of the expertise of the supplier rather than having a client describe in detail what it is he needs. The supplier thus receives the space to use his knowledge, as he is the expert, after all. This means the client does not need to have as much knowledge of all the (detailed) possibilities and variants. That is why the question needs to be as functional as possible and start from the basic principle of the ‘what’ and not the ‘how’. By keeping the description to a minimum, the suppliers have the opportunity to distinguish themselves, which will result in a better solution. This will also save time, as there would be no need for an extensive design brief. That is why, with BVP, only the scope and project objectives are described in detail, after which suppliers will have room to offer a solution based on their knowledge and expertise.
- BVP starts off with a ceiling price that is explicitly stated in the tender documents. A client hereby indicates that he wants the best solution for this price rather than a solution that meets his design brief for the lowest rate. It’s like buying a car; you also want the best car you can afford with your budget.
One of BVP’s basic principles is judging a supplier on the basis of the chances and risks he sees. Furthermore, by means of interviews with key officials, the issue of whether or not a supplier fully understands and oversees will be examined. It is not until later that the offer will be discussed in detail, and elaborated, with the preferred supplier.
- BVP’s basic principle is thus the trust in the supplier. With its tender, the supplier should demonstrate convincingly that they are able to handle the issue and manage the risks, and afterwards, during the implementation, they will take the lead (and responsibility), with respect to managing (internal) risks as well. This requires trust and another manner of collaboration between client and customer in the execution phase.
A different approach
It is quite obvious that BVP requires a different approach than your ‘normal' procurement course. Emeritor supports organisation with this approach during the entire process, from preparation to execution. Thanks to our experience, our advisors know the pitfalls and points of interest. The provision of services includes, naming a few:
- Establishing whether the issue is suitable for BVP.
- Safeguarding of the project by establishing a project plan, step-by-step plan and schedule.
- Putting together and training the core team.
- Determining the objectives and scope.
- Drawing up the assessment method and weighting factors.
- Advice regarding interview methods.
- Advice with concretizing phase.
- Advice during implementation.
Supervision of suppliers
Best Value Procurement does not only demand a different work method from procuring parties/parties calling for tenders, but requires a different skillset from suppliers as well. For the suppliers, Emeritor has established a service package that focuses on supervision from registration to the preparation of the employees during interviews. We only do this if we are not involved with the procuring party or at the express request of the procuring party.