BAFO (Best and Final Offer)
A Best and Final Offer is the revised proposal a buyer requests from shortlisted vendors after evaluation and discussions — the last opportunity to adjust price, terms, or approach before award. As the name warns: no further rounds should be expected.
BAFO rounds appear when evaluations produce a competitive range rather than a clear winner, or when discussions surface weaknesses vendors deserve a chance to cure. The request may invite full revisions or constrain changes to price alone — read its boundaries exactly, since exceeding them can void the offer. Strategically, BAFO is a game-theory moment: you know you're shortlisted but not your rank; buyers know competitive tension is maximal. Disciplined responders decide their walk-away economics before the request arrives, adjust only what discussions justified, and resist the reflexive price cut that converts a winnable contract into an unprofitable one.
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