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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1. Reporting and Compliance

Campaign 1: Reporting and compliance requirements - Currently, the Federal Government requires businesses to fill out a lot of complicated paperwork to do business with us. We know we can do better. We want to know what you are seeing – where can we reengineer paperwork and systems, eliminate duplicative reporting, reduce the frequency of reporting, and/or change outdated requirements? Please help us with our improvements by providing ideas and input on the following questions:

Question 1: What reporting or other compliance requirements are most burdensome and why?

Question 2: How would you streamline reporting and compliance requirements? (please cite or describe specific examples if you can)

Question 3: What other compliance information are you providing to the federal government outside the procurement process that could be used to reduce duplication?

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2. Procurement Rules and Practices

Campaign 2: Procurement rules and practices - We know entities doing business in the private sector have best practices and we’re anxious to learn about and replicate in the Federal Government wherever possible. We want to hear about innovative approaches to contracting that align with your business practices.

Question 1: What are the most effective ways to encourage innovative offers and best solutions?

Question 2: How can we reduce the cost of transactions for contractors?

Question 3: What are the best ways to improve the efficiency and effectiveness of acquisitions for information technology?

Question 4: What procurement rules or practices are most effective and which are least effective and why?

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3. Small Business Participation

Campaign 3: Participation by small and minority businesses and non-traditional government contractors - We know many businesses lack the resources and expertise to participate in the Federal marketplace. We welcome feedback – especially by entities that are not participating in Federal contracting – to understand what steps we can take to make your participation possible.

We welcome feedback on how to increase participation in Federal contracting.

Question 1: How can we make doing business with the government easier and less costly for small businesses, minority businesses, new entrants, and non-traditional government contractors?

Question 2: If you are a small business, minority owned business, or new entrant, what features of the federal acquisition system are most helpful and which are least helpful to you?

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