Articles tagged with : lowest price technically acceptable

Is DOD moving away from LPTA?

How long will it take to trickle down?

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 best value continuum” and narrowly defines when LPTA is appropriate for DOD procurements. This memo signals a shift away from the LPTA source selection process. Download a copy of Kendall’s memo titled, “Appropriate Use of Lowest Priced, Technically Acceptable Source Selection Process and Contract Type.” According to Kendall, LPTA should only be used when procurements meet four specific conditions: The requirements are well defined; The risk...

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5 questions to derail an LPTA procurement

What you ask might guide an agency away from a low-price contract

Recently, while teaching a capture management class, a capture manager asked me what he could do when the contracting officer for a pending IT services bid said he wanted to use lowest price technically acceptable (LPTA) evaluation criteria versus the traditional best-value tradeoff approach. The capture manager and the government program manager wanted to avoid a price shootout, but the contracting shop wouldn’t agree. When confronted with this situation, here are five questions a capture manager should answer to help the technical client steer clear of LPTA requirements. 1. Does the use of LPTA violate government guidance? Does your client know that the Defense Department (DOD) has a policy statement providing guidance on when to use LPTA evaluation criteria instead of the best-value approach that trades off cost and non-cost factors? Appendix A of the DOD’s Source Selection Procedure (3/4/11) contains the policy and states that, “LPTA may be used...

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Will low-price contracting make us all losers?

We are seeing a procurement strategy shift for technical and professional services bids brought about by procurement officials using lowest price, technically acceptable (LPTA) evaluation criteria rather than the more traditional best-value tradeoff criteria. While there is certainly a place for the low-price strategy in federal procurements, it is definitely not suitable for procurements with complex services or uncertain performance risk. When the government applies the strategy to unsuitable procurements, both the government and the bidders lose. Here’s what happens and what you can do about it. When to use LPTA Evaluation Criteria LPTA is actually a form of best value. In traditional best value procurements, the government allows tradeoffs among non-cost factors such as technical approach, management plan, past performance, etc. and cost when determining best value to the government. These tradeoffs give the government the latitude to award a contract to other than the lowest priced offeror when...

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