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The Postal Service bases sourcing and material management decisions on best value. Best value is defined as the outcome that provides the optimal combination of elements such as lowest total cost of ownership (TCO), technology, innovation and efficiency, assurance of supply, and quality relative to the Postal Service’s needs. In the sourcing area, best value is generally achieved through competition, which brings market forces to bear and allows the direct comparison of proposals and life-cycle costs, although market conditions may dictate that a single- or sole-source strategy will be the best business approach. Purchase/SCM teams are empowered to pursue strategies and tactics that enable the Postal Service to achieve best value, and have broad flexibility in (1) deciding which elements of value will be sought by the Postal Service and expressed in solicitation evaluation factors and their weightings and, (2) determining the most effective SCM business practices (early supplier involvement [ESI], consolidating requirements, scope and method or market research, etc.) to employ.
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