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:

AwardsDocumented 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):

  1. A client/user operator of PIPS can minimize their transactions by up to 90%.
  2. Vendors can maximize their profit by up to 100%.
  3. Performance (no vendor generated cost or time deviations, and high customer satisfaction) can be maintained at 98%.
  4. The environment and project management is proactive instead of being reactive.
  5. Environment is transparent and fully measured.
  6. Increases the demand for expertise.
  7. Lower project costs and higher value.
  8. Higher salaries for technical expertise.
  9. Increased efficiency and effectiveness of the buyer’s systems.
Netherlands
Dutch Experts win Dutch Sourcing Award using PIPS [2002]
Best Value PIPS is the only Best Value Approach with documented results to improve performance while minimizing management transactions. PIPS’s success is in response to rising requirements and diminishing budgets. The downturn in the economy has fueled the demand for Best Value PIPS implementation. Efficiency means to do more with less manpower. It is no longer just a saying; it is a measured, logical system to deliver greater value and performance with less manpower requirements. Users of the Best Value Approach have received recognition and awards all over the world and has continued to spread across the world.

 

 

SOURCES:

Performance Based Studies Research Group – PBSRG (2016). Arizona State University Retrieved June 17, 2016, from http://pbsrg.com/