LPTA

When preparing a bid, it is always a good idea to consider the price. This idea comes into play with FAR 15.101-2, the lowest price technically acceptable (LPTA) source selection process.

When is it Used?

The LPTA process is used when the selection process looks at all the technically acceptable proposals when they want to choose the best value from that group. The following applies when using the process:

• The evaluation factors and significant subfactors that establish the requirements of acceptability are written in the solicitation.
• The Solicitation specifies that the award will be made based on the lowest evaluated price with meeting or exceeding the acceptability standards which are non-cost factors.

Several times, LPTA is used for requests for quotes (RFQs), as those are easier to check and get out. The technical acceptability standards are easier to judge and there are lower chances that the choice will not work out.

When is it Not Used?

The LPTA process is avoided when it is for procurement of more technical aspects or items that require a lot more knowledge. Some of the items or services that they try not to use this process on are as follows:

• Information technology services or other computer sciences
• Auditing or audit-ready services
• Knowledge-based professional services
• Personal protective equipment
• Knowledge-based training or logistics services in contingency operations or other operations outside the United States

Small Business Factors

One way LPTA is easier for small businesses is that according to FAR 15.304, past performance does not have to be an evaluation factor. If the contracting officer considers past performance as an evaluation factor, then the vendor shall be evaluated per FAR 15.305. However, the comparative assessment will not apply.

Overall, LPTA does not accept trade-offs between price and non-price factors. This means that proposals must be evaluated for acceptability, but not ranked using non-cost or price factors.

If the contracting officer determines that a small business’s past performance is not acceptable, then following FAR 19.6 the matter is sent to the Small Business Administration for a Certificate of Competency determination.