Value-Based Procurement
Value-based procurement, also known as “best value” procurement, means evaluating purchases beyond price. It means going beyond “lowest responsible bidder” criteria to weigh in factors such as long-term value, evolving technologies, customer service, and design aesthetics. WWEMA advocates for governments and private entities to used value-based procurement methods to ensure the best use of their water and wastewater capital budgets.
Download the Value-Based Procurement Position Paper
WWEMA Efforts
- Optimizing Public Agency Purchasing Power: WWEMA, together with the National Association of Clean Water, has published this joint document to identify procurement methods that achieve maximum return on investment.
- Bidding Procedures and Equipment Procurement: This 31-page report represents the proceedings of a WWEMA-led session at WEFTEC 2011 and includes] results of an extensive survey of the 50 states regarding which procurement options and project delivery methods they allow under the Clean Water State Revolving Fund.
- ConsensusDocs: WWEMA is a member of a coalition of more than 40 associations in the public works and construction industries that are collaborating to develop standardized contracts that incorporate industry best practices and fairly allocate risk.
Additional Resources
- Municipal Procurement: Procurement Process Improvements Yield Cost-Effective Public Benefits: Published in 2013 by the U.S. Conference of Mayors, this 24-page document offers practical steps can mayors take to ensure that local procurement in their cities is performed in a manner that minimizes waste.
- Reforming Our Nation’s Approach to the Infrastructure Crisis: How Competition, Oversight, and Innovation Can Lower Water and Sewer Rates in the U.S.: Published in 2013 by the National Taxpayers Union, this 28-page report calls for procurement reform and improved financial management practices.
- Fixing America’s Crumbling Underground Water Infrastructure: Competitive Bidding Offers a Way Out: Published in April 2012 by the Competitive Enterprise Institute, this 18-page report discusses how “Opening up the bidding process under the principle of ‘may the best technology win’ will immeasurably improve the quality of America’s underground water infrastructure in a cost-effective fashion.”
- Life Cycle Costing in Sustainable Public Procurement: A Question of Value: This white paper from the International Institute for Sustainable Development examines the benefits of conducting life cycle costing analyses when making procurement decisions.
- Field Scan on Innovation in Procurement Provided to the City of Philadelphia: This 2014 document gathers information about current best practices and emerging ideas on procurement and government innovation.
Sample Procurement Policies
A number of municipalities have recognized the value of considering the “total cost of ownership” and have integrated it into their procurement policies: