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Glossary

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.

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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 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 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 Negotiation Negotiation is the discussion through which a buyer and supplier reach terms both can accept.Read more

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.

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.

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.

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