The Development Source
“Value for Money” (VfM) is defined as the optimal use of resources to achieve intended outcomes. Although this is not a new concept, it is one that you can use to make your Management Volume in a government proposal more competitive.
VfM consists of 3Es:
As you see, VfM is not just about cutting costs or providing the lowest possible price. VfM is about how short-term tangibles produce long-term results. VfM is about five sequential factors: input, process, output, outcome, and impact.
Discussing VfM in the Management Volume of your government program should not replace the standard topics you address, including Earned Value Management. Instead, VfM is something you can add as part of your management and budgetary controls. VfM will help demonstrate to reviewers that you are serious about providing good value at the appropriate cost.
Below are the topics you should discuss when you addressing VfM:
Using VfM in your Management Volume will show reviewers that you value transparency and scrutiny in your financial processes. It also will increase their confidence that you will provide a government agency with best value and that you are highly likely to achieve your intended results.