What is the Value for Money Principle?
The value for money principle (German: Wirtschaftlichkeitsprinzip) is a central principle of procurement and budget law, requiring public contracts to achieve the best possible result relative to the resources used.
Legal Framework
- Section 127(1) GWB: Award to the most economically advantageous tender
- Section 97(1) GWB: Procurement principles
- Section 7 BHO: Principle of economy and efficiency
Dimensions
| Dimension | Description |
|---|---|
| Economy | Minimizing resources for a given result |
| Effectiveness | Maximizing results for given resources |
| Suitability | Fitness for intended purpose |
| Sustainability | Considering lifecycle costs |
Most Economical vs. Cheapest
The principle does not require the cheapest bid. It may involve pure price competition, best price-quality ratio, or lifecycle cost assessment.
How Patterno Helps
With Patterno, you immediately recognize award criteria and their weightings. Our AI analyzes evaluation methodology and helps align your bid with the value-for-money principle.