The Best Value Approach (BVA) is a change in paradigm. It focuses on replacing the traditional business model of decision making and management, direction and control (MDC) with the utilization of expertise. It is an approach of an intelligent person who utilizes expertise to create a “win-win” environment for everyone (IMT). This approach is comprehensive in its application into business but is mainly used in the field of procurement. BV PIPS has also been called the Best Value Procurement or BVP.The approach includes:
- A New Procurement Model: The Performance Procurement Information System (PIPS)
- A New Risk Management Model: The Performance Information Risk Management System (PIRMS)
- A New Project Management Model
Documented Value of BV PIPS
The BV PIPS has been utilized in the United States [31 different states] and five other countries. PIPS has been utilized by Performance Based Studies Research Group at Arizona State University over 1,800 times, procuring over $6B of services [construction services, professional engineering services, medical services and IT services]. When BV PIPS has been implemented correctly, the following are measured results (PBSRG 2016):
- A client/user operator of PIPS can minimize their transactions by up to 90%.
- Vendors can maximize their profit by up to 100%.
- Performance (no vendor generated cost or time deviations, and high customer satisfaction) can be maintained at 98%.
- The environment and project management is proactive instead of being reactive.
- Environment is transparent and fully measured.
- Increases the demand for expertise.
- Lower project costs and higher value.
- Higher salaries for technical expertise.
- Increased efficiency and effectiveness of the buyer’s systems.
Performance Based Studies Research Group – PBSRG (2016). Arizona State University Retrieved June 17, 2016, from http://pbsrg.com/