‘Achieving value for money’ for a public sector organisation is its primary procurement objective.

CIPS defines value for money (VFM) as achieving the optimal balance between cost, quality, and sustainability over the whole life of the requirement.

Public sector procurement is governed by principles of:

Transparency

Fairness

Accountability

Best use of public funds

VFM does not mean lowest price; it means best outcome for the organisation and taxpayers, which includes quality, risk, and whole-life cost.

L4M6 Reference:

Learning Outcome 1: Understand objectives of procurement and supply

Topic: Public sector procurement objectives

CIPS L4M6 Study Guide – Value for money and public accountability