Lowest Price Technically Acceptable (LPTA)

 

The 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 tradeoff 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