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