What "best value" actually means in a federal source selection (and why lowest price doesn't always win)
A lot of contractors assume the government buys on price. Sometimes it does. But most competitive federal acquisitions use a best value tradeoff approach, and that changes the math.
In a best value tradeoff, the agency is explicitly allowed to pay more for a technically superior proposal. The contracting officer documents why the higher-priced offer was worth the premium. I've seen awards go to proposals that were 20-30% higher than the lowest bid because the technical approach was meaningfully better and the evaluators could justify it on paper.
What this means practically: if you're submitting a technically strong proposal and pricing conservatively to win on cost, you're leaving money on the table. And if you're submitting a weak technical proposal at a low price, you're not necessarily safe either.
The factors that typically get evaluated alongside price: technical approach, past performance, and management approach. Each solicitation weights these differently and the RFP tells you the relative importance. The relative weights tell you where to spend your proposal hours. Read that section carefully before you write anything.
Lowest price technically acceptable is a different evaluation method where price does dominate. The solicitation will say which approach applies. Knowing which one you're bidding under before you start writing changes how you allocate your proposal hours.