Common use of Best Value Analysis Clause in Contracts

Best Value Analysis. Purchasing Entity may request and conduct a comparison of the offers based upon a best value analysis. Purchasing Entity shall: 5.1.2.1. Contact at least 3 different Contractors holding a Master Agreement for the Services via phone, e-mail or facsimile and request a written, responsive quote for the anticipated Services. Quoted rates must not exceed the most competitive rates and discounts set forth in Contractor’s Master Agreement. However, Contractor may agree to extend specialized, discounted pricing based on the Purchasing Entity’s requirements by providing a specific quote to the Purchasing Entity. 5.1.2.2. Determine which Contractor provides the best value for Purchasing Entity based on Purchasing Entity’s application of some or all of the following factors: a. Applicable preferences; b. Applicable discounts and incremental pricing options; c. Shipping costs; d. Delivery process and service levels; e. Applicable warranties; f. Contractor’s past performance record through reference checks; g. Contractor’s service area; h. Price comparison of the current market value of Services similar to the Services; i. Price comparison to past purchases, taking the inflation rate into account; j. Cost analysis through an element-by-element examination of the estimated or actual cost of proposed Services to determine whether Contractor’s costs are in line with what reasonably economical and efficient performance should cost. Some of the cost elements examined for necessity and reasonableness are, labor costs, equipment, and overhead; k. Comparison of pricing to MSRP; l. Market conditions and competition levels; m. General economic conditions; n. Life cycle costing including expected life, salvage value and discounted total cost of ownership. 5.1.2.3. Document its procurement files describing the process, considerations, findings, and decisions used for determining the Contractor selected through the Best Value Analysis.