What is the trade off method?
The person-trade-off technique is a way of estimating the social values of different health care interventions. Basically it consists in asking people how many outcomes of one kind they consider equivalent in social value to X outcomes of another kind.
What is a best value tradeoff?
Best value tradeoff source selection procedures are based on the concept of using a methodology for award that represents the greatest value to the Government, not necessarily the lowest cost or price or the highest technically rated offeror, based on the evaluation of cost or price and other factors specified in the …
What is price performance tradeoff?
Tradeoff – Price/Technical. In a best value procurement, it is the function of the source selection official to perform a price/non-price factor tradeoff, that is, to determine whether one proposal’s superiority under the non-price factor (or factors) is worth a higher price.
What is a tradeoff analysis?
Definition(s): Determining the effect of decreasing one or more key factors and simultaneously increasing one or more other key factors in a decision, design, or project.
What is trade-off example?
In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.
What is the importance of trade-off?
A trade-off involves a sacrifice that must be made to obtain a desired product or experience. Understanding the trade-off for every decision you make helps ensure that you are using your resources (whether it’s time, money or energy) wisely.
What is a trade-off in Economics examples?
Which of the following is a good example of a tradeoff?
The definition of trade off is an exchange where you give up one thing in order to get something else that you also desire. An example of a trade off is when you have to put up with a half hour commute in order to make more money.
How do you evaluate a trade-off?
Tradeoffs between two dimensions can be assessed by asking how much of one dimension must be given up in order to compensate for a change in the other dimension, with respect to the effect of these changes on the rating.
What is the importance of trade-off analysis?
The main benefits of the tool are that the way in which decisions are reached are made clearer and more transparent, and will include more stakeholders. The tool can therefore build agreement between stakeholders and help to manage any potential conflicts and competing interests.
What is trade-off in economic?
The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.
Why is trade-off important?
Trade-offs create opportunity costs, one of the most important concepts in economics. Whenever you make a trade-off, the thing that you do not choose is your opportunity cost. Everything has opportunity costs. If you just bought something, you could have always chosen to buy something else instead.
How are best value tradeoff sources selection procedures?
Best value tradeoff source selection procedures are based on the concept of using a methodology for award that represents the greatest value to the Government, not necessarily the lowest cost or price or the highest technically rated offeror, based on the evaluation of cost or price and other factors specified in the solicitation.
When to use price / non-price factor tradeoff?
In a best value procurement, it is the function of the source selection official to perform a price/non-price factor tradeoff, that is, to determine whether one proposal’s superiority under the non-price factor (or factors) is worth a higher price. A. G. Cullen Construction, Inc., B-284049.2, 2000 CPD ¶ 45 (Comp. Gen. Feb. 22, 2000).
Why do government agencies use the trade off method?
Government agencies use the trade off method of source selection if it can get the best bang for their buck. Therefore, source selection boards may want to trade a lower rate for a less than optimal technical proposals. Agencies often look at competing proposal when deciding the pros and cons of awarding to one company versus another.
What should be included in a price / technical tradeoff?
Where a price/technical tradeoff is made, the selection decision must be documented, and the documentation must include the rationale for the tradeoff, “including benefits associated with additional costs.” FAR 15.308.