DoD’s words ring hollow to vendors when it comes to LPTA

The Defense Department continues to deny any systemic problem with using lowest-price technically acceptable (LPTA) too much for contracts. But there is a growing body of evidence where perception is overshadowing reality, therefore making LPTA a serious problem.

Two recent examples show just how much work DoD must do to either change the opinion of industry and therefore Capitol Hill, or actually educate its workforce to stop using this approach inappropriately.

The first case study is the ENCORE III IT services contract. Two vendors, Booz Allen Hamilton and CACI, submitted pre-award bid protests to the Government Accountability Office.

The second example is new legislation coming from Sens. Mark Warner (D-Va.) and Mike Rounds (R-S.D.). The two members of the Senate Armed Services Committee introduced the Promoting Value Based Defense Procurement Act of 2016 (S.2826) to limit the use of LPTA, especially in IT procurements.

“The current LPTA focus on price makes sense when the Pentagon is purchasing belts, bolts, and ballpoint pens, yet it provides no incentive for DoD to seek-out the most innovative IT and engineering solutions, especially important as we are working to encourage more innovation in cybersecurity. In many ways, LPTA discourages participation by companies investing in cutting-edge capabilities,” Warner said in a release. “Innovation and technological problem-solving are key to maintaining America’s competitive edge in the 21st century, and Pentagon procurement officers require the flexibility to use updated criteria when evaluating cutting-edge technology and IT services in ways that protect our military men and women and the taxpayers.”