lowest price technically acceptable | The Contracting Education Academy

November 22, 2019 By cs

GAO clarifies reach of new LPTA restrictions

The National Defense Authorization Act for Fiscal Year 2017 and the NDAA for Fiscal Year 2018 imposed new limitations on when the Department of Defense can use Lowest Price Technically Acceptable source selection methods.

Just last month, the Department of Defense issued a final rule amending the Defense Federal Acquisition Regulation Supplement to implement those provisions. Now, in Inserso Corp., B-417791, B-417791.3, Nov. 4, 2019, GAO has weighed in on what counts as LPTA for purposes of those restrictions. This decision may indicate a potentially significant limitation on the reach of the NDAA provisions, new DFARS rule, and proposed FAR rule.

In Inserso, the protester argued that the 2017 NDAA restricted not only DoD’s use of an LPTA source selection process, but also the use of (what the protestor labeled) LPTA criteria within the evaluation process. Specifically, the protester challenged the fact that, under the RFQ, the agency would (1) “first rank quotations according to price, from lowest to highest”; (2) then “evaluate the five lowest-priced quotations as either technically acceptable or unacceptable” (while “reserving the right to evaluate additional quotations”); (3) then “evaluate only technically acceptable quotations under the past performance factor”; and (4) award the task order to the offeror “considered to be the Best Value based upon a price/past performance trade-off” (alteration omitted). According to the protester, the 2017 NDAA required the agency to conduct a tradeoff between price and technical factors — rather than relegating the technical factor to a pass/fail gating criterion.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2019/11/what-is-lowest-priced-technically-acceptable-gao-clarifies-reach-of-new-lpta-restrictions/

November 28, 2018 By AMK

Pentagon lags on policing lowest price, technically acceptable contracts

Two years after Congress required clearer criteria on when the Defense Department could issue lowest price, technically-acceptable (LPTA) contracts, Pentagon contracting officers still lack adequate written guidance, the Government Accountability Office (GAO) concluded in a recently released audit.

Under the fiscal 2017 National Defense Authorization Act (Section 813), the department is required to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to reflect eight criteria that justify the sometimes-controversial use of LPTA’s for awards of $5 million or more. (The requirements governing their use were expanded in the fiscal 2018 version.)

***FAR Part 15 describes the use of several competitive source selection*** ***processes to meet agency needs, which include the LPTA process and*** ***tradeoff process on a best value continuum.***

Though this type of contract can be efficient and quick for obtaining supplies and services, competing contractors often complain that the vehicle can short-change quality.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2018/11/pentagon-lags-policing-lowest-price-technically-acceptable-contracts/152955/

August 10, 2018 By AMK

Death knell for using LPTA for services and other acquisition highlights in the NDAA

Every year the Defense Authorization bill is filled with golden nuggets of little noticed provisions that make a big impact on the federal acquisition community.

This year they range from a strong focus on making it easier for agencies to buy commercial items to mixed messages around the use of other transaction agreements to the ever increasing concerns about too many bid protests.

This is, by far, not a comprehensive list, but several that most federal and contractor employees interested in acquisition should know about.

The House passed the NDAA on July 26. The Senate is expected to take up the bill next week. House and Senate conferees agreed to the bill on July 23, clearing the way to passage.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2018/07/the-death-knell-for-using-lpta-for-services-and-other-acquisition-highlights-in-the-ndaa/

October 11, 2017 By AMK

Procurement may be trending toward value over price

The number of times federal agencies have requested lowest-price, technically acceptable (LPTA) bids in contract solicitations has shot up over the past decade, an examination of Bloomberg Government data shows.

Federal contract solicitations stating that awards will be made on the basis of LPTA source-selection procedures have steadily grown, from 920 in fiscal year 2008 to more than 12,000 in each of the past two fiscal years, according to Bloomberg Government data.

But contracting industry groups and, increasingly, members of Congress have been agitating for a best-value purchasing approach in more cases, taking into account other factors, including whether the benefits of higher-priced proposals are worth the extra cost.

This renewed priority for best-value procurements has been reflected in the fiscal 2017 and 2018 defense authorization bills in Congress, which significantly narrow the range of types of procurements in which the Defense Department can use LPTA as a guiding philosophy.

Keep reading this article at: https://about.bgov.com/blog/procurement-may-trending-toward-value-price/

August 16, 2017 By AMK

Senate attempt to reduce protests misses the point

When it comes to federal procurement, the frequency and expectation of protests has had a palpable, costly, and sometimes deleterious effect on the process and those competing in it.

Most companies now add an extra six to 12 months to their revenue projections in order to account for possible protests.

There is good reason to believe (including surveys) that “low price/technically acceptable” (LPTA) procurement strategies are, with some frequency, driven by a desire to avoid protests, since protesting such procurements is near impossible.

And, of course, there have been cases where incumbents, having lost a re-competition, submit a protest and, as a result, effectively get a contract extension while the protest is decided.

All of these represent unintended and undesirable impacts of the protest process. As a result, many have believed for some time that significant remedial action is needed. This includes the Senate Armed Services Committee, which, for the second year in a row, has included provisions in the defense authorization bill that would require losing protestors to reimburse the government for the costs of a protest when none of the plaintiff’s allegations are sustained.

Keep reading this article at: https://washingtontechnology.com/articles/2017/07/25/insights-soloway-bid-protests.aspx

The National Defense Authorization Act for Fiscal Year 2017 and the NDAA for Fiscal Year 2018 imposed new limitations on when the Department of Defense can use Lowest Price Technically Acceptable source selection methods.

Two years after Congress required clearer criteria on when the Defense Department could issue lowest price, technically-acceptable (LPTA) contracts, Pentagon contracting officers still lack adequate written guidance, the Government Accountability Office (GAO) concluded in a recently released audit.

Every year the Defense Authorization bill is filled with golden nuggets of little noticed provisions that make a big impact on the federal acquisition community.

The number of times federal agencies have requested lowest-price, technically acceptable (LPTA) bids in contract solicitations has shot up over the past decade, an examination of Bloomberg Government data shows.

When it comes to federal procurement, the frequency and expectation of protests has had a palpable, costly, and sometimes deleterious effect on the process and those competing in it.

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