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Is DOD moving away from LPTA?

Bob Lohfeld

By Bob Lohfeld

Industry has long objected to the use of lowest priced, technically acceptable (LPTA) procurement strategies for technical/professional services and complex solution procurements, and it now appears that DOD is moving away from this practice.

Narrowing the use of LPTA

Under Secretary of Defense for Acquisition, Technology and Logistics, Frank Kendall, issued a memorandum on March 4 to clear up confusion about when LPTA is appropriate as a source selection process. His memo states LPTA “has a clear, but limited place in the source selection…

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20 ways to reduce B&P costs and still win

Bob Lohfeld

By Bob Lohfeld

Many companies have experienced flat or declining sales in the prior year and, consequently, are dealing with reduced bid and proposal (B&P) budgets this year. This begs the question, can proposals be written in a less-costly way without reducing win rates?

Obviously, we can reduce proposal costs, but many cost-reduction initiatives cause win rates to plummet.

To find out why proposals cost too much, I asked our proposal consulting team to share their insights. Since this team works on the front lines of about…

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Is price reasonableness really unreasonable?

Bob Lohfeld

By Bob Lohfeld

With so many IT and professional services contracts being awarded to the lowest priced offeror, you have to wonder if the government is worried about awarding contracts to firms whose prices are unreasonably low.

As it turns out, in many procurements the government does not look for unreasonably low prices, and in some instances, is prohibited from doing so. In these procurements, low price has no floor.

The rules for examining price reasonableness and cost realism are complex and generally not well understood by…

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