Best Value - What is it?

The Best Value initiative was introduced on 1st April 2000 as a comprehensive replacement for the Compulsory Competitive Tendering Policy. The Compulsory Competitive Tendering Policy (CCT) was the main purchasing structure of the public sector for a long time. It introduced competition into the public sector arena and brought about widescale savings by its emphasis on finding the right supplier at the cheapest price. However, because it had an undue reliance on economy rather than what could provide the 'best value' for government, it had significant defects which needed to be remedied. Quite simply, Best Value gives much greater power and flexibility to Heads of Departments and those dealing with procurement matters, by enabling them to look not just at cost alone, but quality, service, training, after-sales care, etc, in short, value for money - all those factors that are vitally important in supplying the appropriate solution that most closely meets the purchaser's needs. No longer does government have to be seen as going for the cheapest possible option, and getting in return the lowest standard supply of products. If a purchasing officer can justify a higher spending criteria on the grounds that a larger investment will repay itself in an improvement in efficiency and in service to the citizen, and will prevent additional future outlay on the potential replacement of a more economical alternative, then he has good grounds to support his judgement.

Best Value - What does it mean for the public sector?

For the public sector Best Value is about much more than reforming buying procedures. It is about finding the most suitable partners in order to deliver a higher quality of service to the citizen. It is part of a widespread cultural change the Modernising Government programme is bringing about which is completely updating the manner in which the state carries out its business. Substantially upgrading procurement methods in terms of purchasing not just at the cheapest possible price, but in terms of whole life costs and value for money gives senior public sector decision makers a greater range of tools by which local, regional and central government can deliver the electoral promises of the present administration and fulfil the needs of the people of the United Kingdom.

Best Value - What does it mean for the private sector?

Replacing the rather dated approach to the private sector that CCT (Compulsory Competitive Tendering) encouraged, Best Value is appreciative that the products and services professional companies have to offer can play an enormous part in empowering civil servants and other government employees in reaching the targets that have been set for them in the Modernising Government programme. If outside organisations possess the knowledge to provide solutions to some of the problems with which the public sector is confronted, then, under Best Value decision makers have the capacity to liaise with them to bridge any skills gap that might exist in their own individual departments. This entails completely changing the mentality that buying procedures demanded in the past. When negotiating with private sector companies no longer is just the cost of products and services to be considered, but matters to do with quality, training and after-sales care, etc. An acceptance that dealings with potential working partners can have a profound effect on the calibre of service delivery to the general public is to be regarded as of paramount importance.