Lowest Price Technically Acceptable (LPTA): A Stakeholder Perspective
Abstract
For years, Department of Defense (DOD) acquisition professionals have used the lowest price technically acceptable (LPTA) source selection strategy to obtain goods or services in budget-constrained environments. In 2019, source selection guidance in DFARS 215.101-2-70 was updated with new requirements that appear to limit the usage of LPTA. Industry feedback on the new source selection guidance suggests that the update overcorrects prior guidance, which contributed to the DODs prevalent usage of the LPTA strategy in prior years. New DFARS 215.101-2-70 guidance is also widely criticized for containing high levels of ambiguous language that industry experts believe could create both confusion at contracting agencies and an increase in protests from defense contractors. The purpose of this research is to apply stakeholder theory to source selection strategies used in government acquisitions. Specifically, this research explored the consequences of ambiguous language found in current and prior source selection guidance and aimed to determine the potential impacts on DOD acquisition stakeholders when the LPTA strategy is overused and underutilized.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2020
- Accession Number
- AD1126955
Entities
People
- Carl A Segerstrom
- Irina Jarreau
- Seth W Harlan
Organizations
- Naval Postgraduate School