Best Value vs. Lowest Price Technically Acceptable. The debates continue.

Greetings, there has always been a debate among government contractors and the government about Best Value pricing vs. Lowest Price Technically Acceptable. I have always wondered if I was an astronaut headed to space that the cheapest bolt manufactured to spec. holding on a critical component to the success of life support also built to spec. but the cheapest cost would and could be trusted to get me into space.

We as consumers do have choice but at times we will buy the most expensive item because of the quality of the product. We know through others and or our own experience that y vs. z is cheaper will do the same thing but is not built nearly as good and will last longer therefore it is viewed as an investment over an inferior product.

Yet the government does the opposite. It will pick the cheapest product or service wherein lives are at stake to save money regardless of the outcome. As a Veteran and government contractor sometimes, there are only several or even one company that can manufacture the part or one company that can provide the service. This is by virtue a default of best value. Think about it, it was a small little valve that brought down the Columbia space shuttle. It may have been best value bid I do not know or even the only manufacture. But it is a good example of how a small product can be catastrophic to the situation.

The natural friction arises due to the government wanting to be good stewards of taxpayer dollars. However, as the example cited above, we as people will spend more for something we value and knows is quality with our own money. The people serving the United States and taxpayers e.g., DOD, NASA, DHS etc. All have a job of protecting America and its citizens.

I wonder if a poll was taken by the American people if they would choose the cheapest product or service depending on the mission if they would say yes. Or a pick of three options to opt for the middle cost option. Our soldiers, certainly deserve the best equipment and training to be successful in doing their jobs. I know they would want the best quality products in their equipment. I know there is a place for LPTA, but the government is making investments in people, services and equipment. Should there not be consideration taken to maybe choose the mid-price out of three and depending on the use to try to obtain the best for the purpose of the product and or service.

There is no clear answer, but I know this, if we as people spending our own money will pay more for quality should not the government look to do the same for what it purchases as it is proven from the old cliche: one gets what they pay for. Best value at least provides an option for this approach in certain circumstances.

David N. Finch

Global Chief Growth Officer, The FAR Group, Defense Contractor.