What is necessary for an agreement with a vendor that is ten percent lower than the state contract?

What is necessary for an agreement with a vendor that is ten percent lower than the state contract?

• A. It must be documented in the contract
• B. It must be awarded by 2/3 of the body after soliciting three quotes
• C. It can be directly negotiated without formal bids
• D. It requires a public hearing for approval

Answer: (B)

An agreement with a vendor that offers a price ten percent lower than a state contract often necessitates that the awarding body must go through a process that includes soliciting three quotes and obtaining the consensus of a two-thirds majority. This requirement ensures a competitive bidding process while allowing the public entity to take advantage of lower pricing. By soliciting multiple quotes, the purchasing entity verifies that the lower price is not only favorable but also reflects fair market value. This process promotes transparency and accountability in public procurement, ensuring that decisions are made in the best interest of the taxpayers and the public agency.

An agreement with a vendor that offers a price ten percent lower than a state contract often necessitates that the awarding body must go through a process that includes soliciting three quotes and obtaining the consensus of a two-thirds majority. This requirement ensures a competitive bidding process while allowing the public entity to take advantage of lower pricing. By soliciting multiple quotes, the purchasing entity verifies that the lower price is not only favorable but also reflects fair market value. This process promotes transparency and accountability in public procurement, ensuring that decisions are made in the best interest of the taxpayers and the public agency.