Value for Money
...easy with Apet
using Apet you can clearly demonstrate how your value for money decision was made.
The overriding principle within government for the selection of a preferred tenderer is ‘value for money’.
The ‘value’ concept encompasses all non-price aspects associated with a tenderer’s capabilities to deliver the outcomes sought by a tender.
The ‘value for money’ approach does not mean the lowest total cost offer or the tender with the highest numerical ranking will be selected. Each is a simplistic approach undermining the need for rigorous justification by evaluators.
‘Value for money’ should be used to guide evaluators to the right recommendation.
Lange Consulting & Software (LC&S) estimates best value for money through a marginal cost/marginal utility technique tempered by the application of gap and initial risk analysis.
The principal of the marginal cost/marginal utility model states the critical point is where an increment of cost is matched by an equal increment of utility.
A gap analysis determines the possible materiality of any functional and/or capability weaknesses.
A risk assessment based on details submitted in tenders and the ‘final’ risk assessment conducted as part of later evaluation activity is taken into account to identify preferred tenderer(s).
Apetâ provides all the information you need to make a recommendation based on value-for-money, including reports and graphical analysis designed for decision makers.
Seeking goods and services through public tendering is supposed to be fair to all who wish to submit tenders. As with justice administration, not only should the tendering process be fair but it should also be seen to be fair and the simplest way to ‘be seen to be fair’ is through the implementation of clearly documented tendering practices and information systems to improve transparency and accountability in the tendering process.