Best-Value Procurement in Transportation: Lessons Learned from Bid Protest Challenges

Abstract

The best value (BV) procurement method, which incorporates nonprice factors in addition to price, has gained traction in the transportation sector, particularly for complex projects. However, effectively and objectively analyzing nonprice aspects in BV selection to mitigate bid protests and ensure fairness remains a crucial challenge. Thus, the objective of this research is to identify BV procurement issues that have led to formal bid protests and provide recommendations for alleviating such protests in future projects. The methodology employed consists of a comprehensive literature review on BV implementation in the transportation industry, an analysis of enabling BV legislation at the federal, state, and municipal levels. This was followed by thorough content analysis of bid protests retrieved from the Government Accountability Office (GAO) online database. In reliance on an analysis of twelve bid protests that resulted from the use of BV selection, it was determined that protests occurred in cases involving: (1) proper, open, and consistent communication; (2) overall unfairness, such as an unfair advantage being given to one proposer over the others; (3) concerns over the agency evaluation process; (4) improper use of evaluation criteria or weightings, which favors one proposer over another; and (5) improper composition and conduct of the selection/evaluation committee (e.g., organizational conflict). Based on these findings, the research provides informed recommendations on how agencies can proactively address and mitigate similar challenges that may arise during the procurement selection phase. By shedding light on notable bid protest cases, this research underscores critical issues that can emerge with BV selection and offers valuable insights into effective strategies for agencies to tackle these challenges, promoting transparency and fairness in procurement processes.