Lowest Price Technically Acceptable Contracts
Abstract
CICA (1984 Competition in Contracting Act) generally mandates that, whenever practical, DOD must obtain full and open competition through the use of competitive contracting procedures. Part 15.101 of the Federal Acquisition Regulation (FAR) establishes two primary types of competitive source selection procedures intended to obtain the best overall value for DOD: (1) the tradeoff process and (2) the lowest price technically acceptable (LPTA) process. The tradeoff process is generally used when cost is only one factor to be considered in awarding a contract. For example, DOD may award contracts based on non-cost factors such as quality and performance; a firm's technical or managerial expertise; or past performance. Each of these criteria may be evaluated on a sliding or pass/fail basis. The use of LPTA is appropriate when price is the determining factor in awarding a contract. Under LPTA, for all proposals deemed to be technically acceptable and therefore meeting DOD's specified minimum performance requirements, price is the determining factor in awarding a contract, with no consideration given to any other factors. Past performance does not need to be an evaluation factor when it is not relevant for the particular acquisition. In recent years, DOD has faced criticism for using LPTA instead of a tradeoff process in certain acquisitions. Congress has expressed concern regarding the perceived inappropriate use of LPTA and has passed legislation limiting DODs use of LPTA.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 30, 2023
- Accession Number
- AD1198211
Entities
People
- Alexandra G. Neenan
- Heidi M. Peter