AGA Exam CGFM Topic 2 Question 66 Discussion

Why Select the Lowest Qualified Bidder?

Procurement rules in government require selecting the lowest qualified bidder to ensure fairness, cost-efficiency, and compliance with procurement regulations.

If the mayor's high school classmate's company meets the qualification criteria and provides the lowest bid, there is no conflict of interest unless favoritism or improper influence is proven.

Why Other Options Are Incorrect:

B . Second lowest priced qualified bidder: Selecting the second lowest bidder without justification violates the principle of fairness and cost-efficiency.

C . Third lowest bidder pending state disbarment: This vendor is not a qualified bidder due to pending disbarment.

D . Highest priced qualified bidder with the highest quality products: If quality specifications are already met by lower bidders, selecting the highest-priced bidder is unjustifiable.

Reference and Documents:

Federal Acquisition Regulation (FAR): Requires selecting the lowest qualified bidder.

GAO Guide on Procurement Standards: Emphasizes fairness and cost-effectiveness in vendor selection.