AT&L chief provides guidance on appropriate use of LPTA source selection

The Department of Defense (DoD) Under Secretary of Defense for Acquisition, Technology and Logistics (AT&L) Frank Kendall distributed a memorandum to his department’s acquisition professionals on March 4, 2015, providing guidance on when to use lowest-price technically-acceptable (LPTA) contracts.

Notably, the guidance also speaks about how to apply LPTA competitions to acquisitions for professional services.

Kendall’s memo says that DoD should not use LPTA if it is willing to pay more for superior performance.

The memorandum is comprehensive in that it speaks to the types of contracts that DoD may use in LPTA procurements, including fixed-price, time and materials, and cost-plus fixed-fee contracts.

“LPTA is the appropriate source selection process to apply,” Kendall states, “only when there are well-defined requirements, the risk of unsuccessful performance is minimal, price is a significant factor in the selection, and there is neither value, need, nor willingness to pay for higher performance.”  Kendall continues: “LPTA has a clear, but limited place in the source selection ‘best value’ continuum.”

Read the full AT&L memorandum at: https://www.pubklaw.com/wp-content/uploads/2015/03/LPTA-memo.pdf

 

6 simple fixes for the federal procurement process

As the largest buyer of goods and services in the world, our government has a rigorous procurement process in place to protect the American taxpayer, designed to facilitate helping Uncle Sam buy what he needs to perform his myriad missions efficiently, effectively, and economically. Unfortunately, the federal government fails to spend taxpayer money wisely with such frequency that newspapers and television reports are rife with examples of overspending, failed projects and bloated contracts.

Procurement goes through reforms every few decades, but the current environment could not be worse. From the Brooks Act in 1972 to the Service Acquisition Reform Act in 2003, much has been done to address the “mechanics of procurement,” but little has been done to address the human aspect of procurement, either on the government or the contractor sides. From a $10 stapler to a $1.2 billion failed technology system, our government tries to legislate fixes, but it is hard to legislate human nature.

There are things that can be done without formal change; leaders need to lead, managers must manage, and the workforce must exhibit good judgment, be honest and realistic, achieve value, and learn to manage risk. Procurement personnel need to be well trained, their workload must be better managed, and they need to possess strong problem-solving skills. Contractors need to help the federal government with its procurement issues, provide the right solutions, and be realistic about what it can do.

Keep reading this article at: http://www.federaltimes.com/story/government/acquisition/blog/2015/02/20/procurement-fix-legislation-rule/23754523/

Acquisition 101: When a bargain isn’t a bargain

When my wife and I purchased our first vacuum cleaner, we selected a cheap model. It met all the specs of what we needed, did a minimally acceptable job and lasted little more than a year before it died. Not learning the lesson that buying the first vacuum should have taught us, we immediately bought another cheap vacuum to replace the first one, and it died an early death about 18 months later. We finally did learn our lesson with the third vacuum and paid slightly more for a better vacuum that has lasted six years (and counting).

Much like our predicament with the rotating vacuums, federal contracting professionals are facing increasing pressure to purchase goods and services as cheaply as possible using a method commonly referred to as “lowest price/technically acceptable” (LPTA)—even if it means minimal acceptability.  This push is laudable in theory, but the reality is often higher prices and a smaller pool of quality contractors, while robbing contracting officers of any discretion to choose a solution or product that is more cost-effective in the long term.

Keep reading this article at: http://www.govexec.com/contracting/2015/01/acquisition-101-when-bargain-isnt-bargain/102672/

About the authors: Eric Crusius, a partner with Fed Nexus Law, focuses on government contracts, cybersecurity, employment law and complex litigation. Mitchell Bashur, an associate at Fed Nexus Law, also contributed to this column.

DOD asks leaders to grade RFPs earlier in acquisition cycle

The Defense Department is requiring senior officials to review major acquisitions before the program receives approval to move into the technology development phase, commonly known as Milestone A.

This change is part of the rigor brought into the military from the Better Buying Power (BBP) initiative.

“How do we ensure our investment accounts go as far as they can through addressing affordability? We are doing it through increased emphasis through systems engineering, especially before and around Milestone A,” said Katrina McFarland, the assistant secretary of Defense for acquisition.

Keep reading this article at: http://www.federalnewsradio.com/394/3731783/DoD-grades-its-approach-to-RFPs-before-it-gets-to-A

Pentagon ranks top suppliers to spark competition among contractors

The Defense Department’s acquisition chief on Friday (June 13, 2014) released a ranking of the top 30 supplier units within the contracting industry as part of a continuing effort to improve the government’s largest procurement operations by curbing costs and professionalizing the workforce.

Frank Kendall III, undersecretary of Defense for acquisition, technology and logistics, introduced the first rankings from a Navy Department pilot project called the Superior Supplier Incentive Program. Designed to help industry “recognize its better performers” based on past performance and evaluations by program managers, such a list is planned for all the services beginning to build incentives, Kendall told reporters. “The industry people who will respond the most will be the ones at the bottom,” he said.

Sean Stackley, assistant Navy secretary for research, development and acquisition industry, said “industry best practices include recognizing the best suppliers, which gives them an incentive to sustain superior performance.” The selections were made through a process designed to be “fair and objective and understood by the public and Congress, as well as easy to manage,” Stackley said.

Keep reading this article at: http://www.govexec.com/contracting/2014/06/pentagon-ranks-top-suppliers-spark-competition-among-contractors/86473/

For the annual report on the performance of the Defense Acquisition System, click here.