A best and final offer, or BAFO, is a supplier’s final revised proposal submitted after a buyer requests one last competitive improvement or clarification. It is commonly used near the end of a structured sourcing process.
When is a BAFO requested?
A buyer may request BAFOs after evaluating initial bids, clarifying requirements and identifying a shortlist. The request should be issued consistently to participating suppliers and include a clear deadline.
What can a supplier revise?
The response may revise price, lead time, service levels, payment terms, implementation commitments or contractual exceptions. The buyer should specify whether all elements may change or only named items.
How should offers be compared?
Use the same scope, quantities, currency, tax basis and evaluation date. Record changes from the previous offer so a lower headline price does not hide reduced service or shifted risk.
Does a BAFO create a contract?
Not automatically. Its legal effect depends on the procurement documents, offer wording, acceptance process and applicable law. Avoid telling suppliers they have won before approvals and contract execution are complete.
What should the record contain?
Keep the request, invited suppliers, submission deadline, each final response, evaluation scores, clarifications, approval and award decision. Late or non-compliant offers need documented treatment.
