Articles tagged with : professional services

Why some companies embrace LPTA contracts

Lower barrier to entry means marginally credible firms have shot at winning procurements

Some companies are actively seeking lowest price, technically acceptable (LPTA) professional services bids—but they’re not the companies you’d think. You’d expect companies with deep experience in their fields that have honed their operating costs to the minimum and are operating at maximum efficiency to seek out LPTA bids where they could compete on price—but it is just the opposite. Inexperienced, marginally credible firms are finding LPTA procurements provide a unique opportunity to penetrate government market segments that they would otherwise have been unable to enter. Here’s how it works. LPTA lower the barrier to entry Under LPTA bids, the government awards contracts to offerors with minimally acceptable technical proposals rather than to offers with the best technical proposals as is normally done in best value trade-off procurements. In other words, the LPTA evaluation criteria provide no additional value to the market leader company over the market laggard company. To pass...

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