best and final offer (BAFO)

A Best and Final Offer (BAFO) is the last revised proposal a supplier submits after negotiation rounds in a public procurement procedure. It represents the supplier's strongest commercial and technical position — the final opportunity to present the most competitive terms before the contracting authority makes its award decision.

How does a BAFO work?

In procedures that allow negotiation, such as the competitive procedure with negotiation or competitive dialogue, the contracting authority conducts one or more rounds of discussion with shortlisted suppliers. During these rounds, suppliers receive feedback and can refine their solutions, pricing, and contractual terms.

When negotiations conclude, the contracting authority sets a common deadline for all remaining suppliers to submit their final bid. Under Directive 2014/24/EU (Article 29), minimum requirements and award criteria cannot be negotiated, and no further negotiation is permitted on the BAFO itself. The contracting authority evaluates the final offers and selects the most economically advantageous tender.

Key rules and principles

• Common deadline: All suppliers must receive the same deadline for submission, with sufficient time to prepare their final offer
• Equal treatment: Every supplier must have had comparable opportunity to improve their offer during the negotiation phase
• No further negotiation: Once a BAFO is submitted, the negotiation phase is closed — the authority may only seek clarifications
• Binding offer: The BAFO is legally binding and forms the basis for the contract

The BAFO stage is particularly important in complex procurements where initial offers evolve significantly through dialogue. Tools like Cobrief help suppliers discover negotiated procedures early, giving them time to build a strong position ahead of the final offer round.

A BAFO marks the decisive moment in any negotiated procurement. A well-prepared final offer that incorporates insights and feedback from the negotiation rounds can be the difference between winning and losing the contract.