1. (a) Supplies and services purchased under this chapter must:

   1. (1) meet the specifications and needs of the purchasing governmental body; and
   2. (2) be purchased at a fair market price as described under subsection (b).

2. (b) A fair market price under this section must cover for the qualified agency the costs of raw materials, labor, overhead, and delivery cost. In determining the fair market price, the purchasing agent shall determine if the fair market price is within ten percent (10%) of the average price estimates or quotes using one (1) or more of the following:

   1. (1) Available information from reliable market sources.
   2. (2) A market survey from a person designated by the committee.
   3. (3) Previous contract prices.

   4. (4) The range of bids from the most recent solicitation, including a determination of:

      1. (A) the median price of the bids;
      2. (B) the average price of the bids; and
      3. (C) any market conditions or specifications that have changed since the most recent solicitation.

As added by P.L.49-1997, SEC.1. Amended by P.L.46-2007, SEC.4; P.L.37-2018, SEC.2.