Best and Final Offer (BAFO) Procurement of Clinical Medical Equipment

Abstract

Public funded Ontario hospitals are required to be in compliance with the Broader Public Sector (BPS) procurement directive. As part of this directive, a total procurement value of goods, non-consulting services and construction above a threshold value of $121,200 (effective January 1, 2024) will require an open competitive process. This process often referred to as Request for Proposal (RFP) may have an additional step, called best and final offer (BAFO) incorporated. In the BAFO process, shortlisted vendors would go through an additional stage with new rated criteria and submission of best and final offer for pricing. An RFP process may span several months depending on the complexity of the product or services being procured. The addition of the BAFO step extends these timelines. This is in addition to the increased effort and resources required to draft and evaluate additional rated criteria and to evaluate the BAFO results. In this paper we aim to provide an overview of the steps involved in RFP and BAFO processes. We will also compare and analyze the results of two RFP and BAFO initiatives undertaken by The Hospital for Sick Children (SickKids) and review the benefits and challenges given the impact on project schedule, cost, and resources. We will also provide recommendations on important aspects to consider before initiating BAFO RFPs.