2.2.4 What is Best Value for Money?

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The purpose of public procurement is to obtain the best VFM (BVFM) and to do this it is important  to consider the optimum combination of “whole life cost” (i.e. acquisition cost, cost of maintenance and running costs, disposal cost) of a purchase and its fitness for purpose (i.e. quality and ability to meet the contracting authority’s requirements). This definition enables contracting authorities to compile a procurement specification which includes social, economic and environmental policy objectives (SEE criteria) within the procurement process. “Whole life cost” includes both quantifiable and non-quantifiable or intangible costs and benefits.

Procurement processes within contracting authorities can only result in best value for money when the following ten guiding principles governing the administration of Cypriot public procurement have been satisfied to an acceptable extent:


Table 2-1: The ten guiding Principles to achieve Best Value for money

Competition - Competition among suppliers should be encouraged in the most efficient and effective way.
Efficiency & Effectiveness- Εfficiency and effectiveness should be sought in the procurement process to secure value for money for the contracting authority.
Fairness/ Non Discrimination Act fairly during the whole procurement lifecycle without imposing unnecessary burdens or constraints on suppliers or potential suppliers. Avoid any favourably treatment to specific supplier or potential supplier.
Objectivity/Integrity/ Honesty Declare any conflict of interest that affects or appears to affect their judgment; Reject gifts, hospitality and benefits of any kind from supplier or a potential supplier, which might be reasonably seen to compromise their objectivity or integrity.
Transparency Ensure equal conditions and accessibility to all economic operators, by informing them in an open and transparent way.
Accountability Be accountable for the responsibilities assigned to them, as well as for the decisions made by them, keep the appropriate records.
Confidentiality/ Accuracy of Information/ Protection of Intellectual Property Respect the confidentially of information acquired in the course of performing their duties and not disclose any such information without having proper and legitimate authority to do so.
Conformity to the Laws Serving the Public Interest/ Responsiveness Conform to the national and EU legislation, as well as to other requirements and commitments regarding public procurement. Serve the public interest and act with responsiveness in using the “taxpayers” money.
Professionalism Work to a high standard of professionalism by complying with the legislation in force and applying the best practices.
“Green purchasing”- Exploit the opportunities to incorporate environmental considerations and issues in each stage of the procurement lifecycle.

© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
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