Value for Money: Guidance Note on Procurement
Keyword(s):
The Cost
◽
This guidance note discusses the principle of value for money (VFM) and its relevance and application to the different phases of the ADB procurement cycle. It also introduces “life cycle costing,” which takes into account not only the acquisition cost, but also a combination of paid price plus the cost of operating and maintaining the goods or services procured. The guidance note provides a matrix of the relationship of VFM with other ADB core procurement principles to give a better understanding of how VFM works with the other principles.