Do we have to award to the lowest priced quotation?
Awards shall be made to the lowest responsive responsible quote. When it is not practicable to award to the lowest responsive, responsible quotation, award may be made to the quote offering best value to the State.(See HAR section 3-122-75)
“…Considering all criteria, including but not limited to quality, warranty, and delivery; award shall be made to the lowest responsive, responsible quotation received.
…When award to the lowest responsive, responsible quotation is not practicable, award shall be made to the vendor whose quotation provides the best value to the State. Written determination for the selection shall be placed in the procurement file….”
Best value is defined as:
"...the most advantageous offer determined by evaluating and comparing all relevant criteria in addition to price so that the offer meeting the overall combination that best serves the State is selected.. These criteria may include, in addition to others, the total cost of ownership, performance history of the vendor, quality of goods, services, or construction, delivery, and proposed technical performance..." (see HAR section 3-122-1)
Should the lowest quote received not be practicable for award, criteria utilized to select for best value should be reflected in the specifications.
For example: In the case of a warranty
The solicitation requires a minimum of a 1 year warranty.
Vendor 1 offers the product with a 1 year warranty for
$15,200.
Vendor 2 offers the same product with a 5 year warranty for
S15,300.
You may award to vendor 2 if it is the best value.
Justification for an award to other than lowest quotation shall be included in HePS in the Competition Comments field.
Remember, awards of small purchases are visible to all vendors in HePS. To avoid possible complaints/protests make sure justification is clear, complete and in accordance with Hawaii Administrative Rules, procurement circulars and departmental procedures.