Monday Morning Contracting Tips
by Dannie E. James Sr
JE Group LLC
Phone: 404-557-0027
Fax: 404-521-4018
www.jegroupllc.comThe Challenge of Applying the Lowest Price Technically Acceptable (LPTA) Process to the Procurement of Complex Services
When the Government used LPTA, they should be required to define Technically Acceptable to ensure needed quality: Industry
has expressed concerns about the use of Lowest Price, Technically
Acceptable ("LPTA") selection criteria that essentially default to the
lowest price bidder, independent of quality. Where LPTA is used, the
Department needs to define TA appropriately to ensure adequate quality.
Government
are moving to increased reliance on the Lowest Price Technically
Acceptable (LPTA) source selection method. 1 Under defined
circumstances, the LPTA process can control costs and result in best
value for the Government. But the LPTA process, which can eliminate
agency discretion to value technical and other non-cost superiority, is
not appropriate for all acquisitions. Within the context of professional
services, even under the best of circumstances, the LPTA method creates
risks that need to be mitigated by a precisely drafted solicitation and
a technically rigorous, carefully managed proposal evaluation process.
Many
Contractor’s would recommend that solicitations for complex
professional services avoid using the LPTA source selection process.
Such solicitations should instead adopt a classic
best-value/cost-technical trade-off approach to afford the Government
flexibility to value technical superiority relative to potential cost
savings.
Many
of the government proposal evaluators are pushing back on the use of
lowest price, technically acceptable (LPTA) evaluation criteria—and for
good reason. They are now learning that this evaluation criteria can
limit their ability to exercise reasonable judgment in the evaluation
process and may result in contracts awarded to companies that are
clearly inferior and have less qualified offerings compared to others in
the competition.
Here are two instances where the use of LPTA evaluation criteria backfired on the government decision-makers:
1. Superior value versus price
2. Past performance and performance risk Sphere: Related Content