---
title: What Is BAFO? Best and Final Offer Defined | Aavenir
url: https://aavenir.com/glossary/bafo/
description: A best and final offer (BAFO) is the last, improved proposal a buyer asks shortlisted suppliers to submit near the end of a request for proposal process.
updated: 2026-11-07
---

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# What is a best and final offer?

A best and final offer (BAFO) is the last, improved proposal a buyer asks shortlisted suppliers to submit near the end of a request for proposal process.

## How it works

After evaluating proposals, the buyer shortlists the strongest suppliers and invites each to submit a best and final offer. The request usually explains which areas the buyer wants improved, such as price, scope, service levels or contract terms, and sets a firm deadline. The award decision is then made on the final offers.

## Why buyers use it

A best and final offer gives suppliers one clear chance to sharpen their proposals after they understand the buyer's priorities better. It can improve value without a long series of negotiation rounds, and it keeps the process fair because every shortlisted supplier gets the same opportunity and deadline.

## Good practice

- Invite only suppliers who could genuinely win.

- Say clearly what may change and what may not.

- Give every supplier the same information and time.

- Make it the last round, so the word "final" holds.

## How Aavenir handles it

[RFPflow](https://aavenir.com/solutions/rfp-management-software/) runs the request for proposal, scores responses, shortlists suppliers and issues a best and final offer round with the same questions and deadline for each, keeping a record of every submission.

## Keep reading

[Request for proposal A request for proposal asks suppliers to propose how they would meet a need, and at what cost. Read more](https://aavenir.com/glossary/request-for-proposal-rfp/)[RFP debrief An RFP debrief is the meeting where a buyer tells bidders why their proposal won or lost and how it could improve. Read more](https://aavenir.com/glossary/rfp-debrief/)[Negotiation Negotiation is the discussion through which a buyer and supplier reach terms both can accept. Read more](https://aavenir.com/glossary/negotiation/)

Frequently asked questions (FAQ)

## Common questions

###

### When is a best and final offer requested?

After the initial proposals are evaluated and a shortlist is chosen, and before the contract is awarded. It is usually the final step of a request for proposal. [Read about request for proposal](https://aavenir.com/glossary/request-for-proposal-rfp/).

###

### Is a best and final offer the same as negotiation?

It is a structured form of negotiation. Instead of separate talks with each supplier, every shortlisted supplier is asked to improve its offer once, in writing, by the same deadline. [Read about negotiation](https://aavenir.com/glossary/negotiation/).

###

### What should a supplier change in a best and final offer?

Whatever the buyer has signaled matters most, often price, scope, delivery dates or terms. Suppliers should address the buyer's concerns directly and not introduce new conditions. [Read about RFP debriefs](https://aavenir.com/glossary/rfp-debrief/).

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