The common techniques for determining value for money have pitfalls that may result in failure to buy the best solution. Born out of 15 years’ experience in evaluation, Commerce Decisions has developed an alternative methodology to ensure value for money is achieved. Called “Real Value for Money (RVfM)”, our methodology takes a very different approach to traditional methods.
The AWARD<sup>®</sup> RVfM module provides a robust and transparent supplier selection mechanism, ensuring that a project team’s scoring methodology has the desired/expected effect. The RVfM process delivers -
As our knowledge and experience has deepened, we have become increasingly concerned about the application of many common approaches to procurement and the techniques/methodology used to ensure value for money is achieved. This white paper seeks to lay out our concerns with these frequently used methods in a structured way. It will also provide some useful pointers on how procurement teams can avoid the pitfalls inherent in these processes.
The AWARD® RVfM (Real Value for Money) module encapsulates key elements of Commerce Decisions’ thought-leadership in ensuring value for money decisions are made by procurement teams. Incorporating Weighting Workshop tools, three calculation methodologies, scenario testing, price inputting and outcomes analysis; this module also supports Commerce Decisions’ proprietary ‘RVfM’ methodology for determining best value. Commerce Decisions developed RVfM as an alternative to common procurement techniques for achieving value for money, many of which are flawed and can introduce unanticipated effects which fail to deliver the best value solution.