2. Procurement Rules and Practices

LPTA Should Only Be Used For Commodities

Use of Lowest Price Technically Acceptable (LPTA) source selection procedures has increased considerably in recent years and in many cases it is being used inappropriately when the government is not acquiring commodity goods and services. If the product or service cannot be well defined, so that all competitiors are effectively competing on supplying the same product or service, LPTA shouls not be used. Also, if there is significant performance risk, because the good or service is not a commonly provided commodity, LPTA should not be used. FAR specifies that LPTA should be used when requirements are well-defined and there is minimal performance risk. If requirements are well-defined and performance risk is minimal, the contract type should be FFP (in some cases LPTA is being used inappropriately on T&M and cost-reimbursement). Finally, if past performance may help differentiate offerors, LPTA should not be used as past performance is rated either acceptable or unacceptable, and a great performer with many years experience is rated identical, i.e., acceptable, to an offeror with NO performance, since offerors with no performance must be rated neutral, which results in an acceptable rating.



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Idea No. 115