Tag Archives: Scott R Calisti

Lowest Price Technically Acceptable: Why All the Debate?

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Author: Scott R. Calisti

Industry continues to raise concerns about the perceived overuse by the Department of Defense (DoD) of the Lowest Priced Technically Acceptable (LPTA) source-selection process.

In appropriate circumstances, combined with effective competition and proper contract type, LPTA can drive down costs and provide the government with a best-value solution. Using LPTA can also simplify and streamline the selection process and deliver precisely the product or service required by the warfighter. Detractors argue LPTA drives us to only a “low cost, low quality” solution, stifles innovation and squeezes corporate margins due to downward pressure on price. Furthermore, industry contends, overusing LPTA in the long haul will erode the DoD technological edge through low-cost/low-performance solutions; cause performance innovators to depart the market and reduce the quality of goods and services provided.

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