“Lowest price” is a contract award mechanism where the winning tenderer is the one offering the lowest price among bids that meet all specified requirements. In this approach, cost is the sole determining factor — provided that each submission is technically and administratively compliant. Unlike MEAT (Most Economically Advantageous Tender), this criterion focuses purely on price and does not involve evaluating qualitative or added-value aspects.
Under EU procurement rules, authorities may choose between the lowest price and MEAT criteria when awarding tenders — and must explicitly announce their choice in the contract notice. While the “lowest price” option is simple and expedient, it excludes evaluation of any quality factors, innovation, or lifecycle costs; instead, bids are assessed via a clear pass/fail mechanism on specifications alone. Authorities exercising discretion must balance speed and fairness with the risk of neglecting long-term value.
In practice, awarding on the lowest price can streamline procurement, especially for well-defined, standardized goods. However, it removes the potential to reward better quality, sustainability, or innovation. Buyers must be cautious: overly low bids may raise concerns of unrealistic pricing or fraud. Clear specification and diligent assessment of compliance are vital to ensure integrity and avoid pitfalls like awarding unviable offers.
