Since the Best Value Approach is not commonly used, there might be some hesitation to use it in large government organizations and universities. Despite the fact that the approach is not commonly used, the Best Value Approach has proven to be successful at largest university in the country, Arizona State University.

Ray Jensen commented about the Best Value Approach in 2007 after they implemented the process.
Over a year ago, we made the decision to implement the Best Value Performance Information Procurement System (PIPS) for specific procurement actions. I had met its developer Dean Kashiwagi ten years earlier, agreed with some of his ideas, and disagreed with others. At the time, I thought that many of his ideas were intuitive and we were doing them in our own way. A year ago, I was updated on the Best Value PIPS process, and realized that the developed
system had matured significantly. In its current form, Best Value PIPS now:

1. Provides a better mechanism to select the supplier that is best positioned to perform successfully;
2. Reduces the need for the development of overly detailed scopes of work that actually transfer risk and responsibility to the owner;
3. Requires a more thoughtful response from the supplier community;
4. Transfers the decision making and risk to the contractor; and,
5. Provides a more efficient approach to contract management, something we were not very successful at doing.

After running PIPS on the $400M food services contract, and seeing the performance and the proactive actions of the vendor, I am convinced that we can benefit by integrating PIPS into our future contracting actions. We have a vision to integrate Best Value PIPS into our procurement processes so that we can truly outsource risk and control to high performance vendors. We are now planning to partner with the University of Arizona and Northern Arizona University to procure other services. Best Value PIPS has moved the University procurement into an environment of efficiency, performance, and value.
I highly recommend that all university services and procurement/contracting personnel attend the Best Value conferences.

Best regards,

Ray Jensen, C.P.M.

Download the Case Study for ASU:
14 Arizona State University Best Value Effort

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Does Best Value Work at Universities?

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