This video defines Value for Money and Quality as key principals under ADB’s New Procurement Framework, alongside Fairness, Economy, Efficiency, and Transparency.
How do Value for Money and Quality fit within ADB’s core procurement principles?
Value for Money and Quality have always been key objectives for ADB projects and they are now formally included among the core procurement principles along with Fairness, Economy, Efficiency, and Transparency.
How does ADB define Value for Money and Quality?
By necessity, Value for Money is determined by circumstances particular to each procurement package.
It is defined by factors which, in addition to cost, ensure that goods, works, consulting or nonconsulting services procured deliver optimal benefits to beneficiaries.
These factors may include use of technology; specific performance criteria; and/or any unique economic, social, or political conditions associated with procurement.
Quality — a key component of Value for Money — aims to ensure that goods and services are delivered to the required standards in a timely and effective manner and looks for the best possible solution to achieve project objectives.
How does applying these new principles improve project outcomes?
By using a fit-for-purpose approach, borrowers can ensure that the most effective solution is chosen and that total cost of ownership — not just the price for goods and services — contributes to the overall quality of the procurement and helps result in desired outcomes.
Through ADB’s Guidance Notes, borrowers can gain knowledge on how to apply Value for Money and Quality throughout the procurement process.