In Best Value sourcing, the qualitative, or technical, component looks at the encompassing value of a contract – including but not limited to:
- transportation/delivery costs
- quality of work
- cost of maintenance
- end of life for goods or services provided
- impact on environment, society, human health, and the economy
The goal is to minimize risks of unexpected future costs or unacceptable performance.
Example: A higher unit price may be offset by lower maintenance cost, if a higher quality product results in reduced maintenance and greater efficiencies.
Considerations in addition to price (from Public Contract Code 10507.8)
- The total cost to the University of its use or consumption of goods, materials, and services
- The operational cost or benefit incurred by the university as a result of a contract award
- The added value to the university, as defined in the request for proposal, of vendor-added services
- The quality and effectiveness of goods, materials, and services
- The use of more sustainable goods and materials in the manufacturing of the goods and materials and the packaging of these products
- The reliability and timeliness of delivery and installation
- The terms and conditions of product warranties, maintenance, and vendor guarantees
- The vendor’s quality assurance, continuous improvement, and business resumption programs and their benefit to the university
- The vendor’s experience with the timely provision of goods, materials, and services
- The consistency of quality and availability of the vendor’s proposed supplies, materials, and services with the university’s overall procurement program
- The economic benefits to the local community, including, but not limited to, job creation or retention and the support of small and local businesses
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