Why "lowest price" isn't always the best deal!

When are Federal, state and local purchasing departments going to understand that sometimes it's not in their best interest to buy things from the cheapest vendor? Sure, if you're buying #2 yellow pencils, by all means, buy them from the cheapest vendor. That's what we call a commodity item, they're all the same so why not save 5 cents on each pencil when you can.

However, when you're dealing with technology, cheapest isn't always the best deal. Sure, you have to have some checks to make sure you're not paying $500 for toilet seat. If you're rushed to the hospital for emergency, life-saving surgery do you want the doctor who graduated first in his class or the guy who got his degree from the Internet because it was cheaper?

There has to be a better way for purchasing departments to pick the overall winner for technology bids other than simply picking the cheapest. Why not develop a point system where you get points for things such as: Years in business, documented processes and tools, certifications and credentials of those people doing the work, references and yes, price. That way you might not pick the cheapest vendor but you're ensuring that overall you're going to get the best deal possible.

Just my $0.02. Oh wait, maybe I should make that $0.01 before someone else cuts his rate to get the business.