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Federal Procurement

Best Value Tradeoff

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Best Value Tradeoff

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FAR 15.101-1

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Why does Best Value Tradeoff (FAR 15.101-1) matter?

The best value tradeoff process allows the government to award contracts based on a combination of technical and cost factors, rather than price alone. Evaluators weigh technical superiority against cost premiums, enabling awards to higher-priced offerors when the technical benefits justify the additional cost. This approach is fundamental to complex acquisitions where quality and innovation matter.

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Advantages

  • +Allows selection of technically superior solutions even at higher cost
  • +Encourages innovation and creative problem-solving from offerors
  • +Provides flexibility to weigh multiple evaluation criteria
  • +Enables risk-informed source selection decisions
  • +Produces better long-term value for complex requirements

Disadvantages

  • -More time-consuming evaluation process
  • -Subjective judgments can lead to bid protests
  • -Requires well-trained evaluation teams
  • -Documentation burden is significantly higher
  • -Can introduce inconsistency across evaluators without strong controls

Related Evaluation Factors

Lowest Price Technically Acceptable (LPTA)FAR 15.101-2Highest Technically Rated Fair & Reasonable PriceFAR 15.101Value Adjusted Total Evaluated Price (VATEP)FAR 15.101-1

Other Evaluation Factors

Technical/Management ApproachFAR 15.304Past PerformanceFAR 15.305(a)(2)Cost/Price RealismFAR 15.404-1(d)Small Disadvantaged Business ParticipationFAR 15.304(c)(4)Oral PresentationsFAR 15.102Sample Tasks/Test DemonstrationsFAR 15.304

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Cite this page
Bureauify. (2026). Best Value Tradeoff — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/best-value-tradeoff

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