In a negotiated procurement, a Best and Final Offer (BAFO) represents the bidder’s ultimate proposal after one or more negotiation rounds. This submission reflects the bidder’s most favorable terms, offering the best price, improved conditions, and refined technical or delivery aspects. The BAFO stage is typically the final opportunity for bidders to enhance their bids before the contracting authority selects a winner.
A well-crafted BAFO balances competitiveness and compliance, aligning closely with the buyer’s priorities. After BAFOs are submitted, the expectation is that no further negotiations will follow, allowing the evaluation to proceed promptly to an award decision. This process ensures fairness and efficiency by giving shortlisted bidders a final chance to demonstrate their optimal value, and it signals to both parties that the procurement process is closing in on its conclusion.
BAFOs are commonly used in complex or high-value tenders to ensure that the contracting authority secures a proposal that offers the best value for money without compromising on quality or delivery.
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