Traditionally, public agencies have awarded construction contracts via the “lowest responsible bidder” procurement method, where bidders submit sealed bids and contracts are awarded to the lowest responsible bidder. However, a number of governmental entities have started to award contracts through “best value” procurement, which looks at factors other than price. Quality, experience, and expertise of the bidders also are relevant considerations when selecting contractors or vendors under a “best value” procurement format.
Following the trend, on May 16, 2017, Philadelphians approved a ballot measure that amended the City’s Home Rule Charter to allow the City to award certain contracts based on the “best value” standard, in addition to the “lowest responsible bidder” approach. Shortly thereafter, on July 27, 2017, the City issued regulations governing the award of contracts based on the “best value” method.