Which method of source selection involves awarding a contract based on the lowest price?

The method of source selection that involves awarding a contract based on the lowest price is competitive sealed bids. In this approach, suppliers submit their bids in a sealed format, and these bids are opened at a specified time. The organization evaluating the bids primarily focuses on the price and may have predetermined criteria that emphasize the importance of cost. The contract is typically awarded to the bidder who presents the lowest responsive and responsible bid, ensuring fairness and transparency in the procurement process.

Competitive sealed proposals and requests for quotations generally allow for more qualitative evaluations, such as technical capabilities or experience, in addition to price. Quite often, these methods are used for more complex procurements where additional factors besides cost are crucial for decision-making. Direct negotiations involve discussions with suppliers to achieve favorable terms but do not standardize the bidding process with established pricing criteria, making it less likely to result solely in an award based on the lowest price.