Lowest price compliant
An award method where every bid that meets all mandatory requirements is ranked on price alone, and the cheapest wins. Common for hardware and licences.
Also called: Lowest price technically acceptable (LPTA)
Related terms
- Best value
- Choosing the bid that gives the best mix of quality, risk and price, not simply the cheapest. Most IT services contracts are awarded on best value.
- Request for quotation (RFQ)
- A tender for a clearly defined product or service where the buyer mainly wants a price. RFQs are usually smaller, faster and decided on the lowest compliant price.