A Case Study Analysis on the Impact of a Hybrid Application of the Best Value Approach
Keywords:Best Value Approach, Hybrid, Best Value Procurement, Risk
The Best Value Approach (BVA) has been used as a method to procure and manage services. As the BVA is further proliferated, there are applications of the BVA which deviate from the standard approach which are labeled as hybrid processes. This research focuses on better understanding BVA hybrid projects and the implications that may arise with such deviations. Using case study research, the BVA was used to procure services for the construction of ships. The research findings show the impact of hybrid applications of the BVA including (1) the selection of suppliers based on decision making instead of expertise (2) attempts to share and transfer risk, (3) incomplete clarification phase planning by expert suppliers, and (4) incomplete use of the Weekly Risk Report and Director’s report to track project deviation. The resulting hybrid application was found to have increased costs, increased decision making, and created a non-transparent environment. Suggestions have been made to improve upon these areas by applying the BVA structure including a selection process to identify expertise and a project management process which utilizes the supplier’s expertise to create a structure of transparency through performance metrics.