LOWEST PRICE TECHNICALLY ACCEPTABLE (LPTA): A STAKEHOLDER PERSPECTIVE
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Authors
Jarreau, Irina
Segerstrom, Carl A.
Harlan, Seth W.
Subjects
Department of Defense
DOD
lowest price technically acceptable
LPTA
trade-off
source selection
obligation
fiscal responsibility
best value
stakeholder
stakeholder theory
DOD
lowest price technically acceptable
LPTA
trade-off
source selection
obligation
fiscal responsibility
best value
stakeholder
stakeholder theory
Advisors
Poree, Kelley
Wang, Chong
Date of Issue
2020-12
Date
Publisher
Monterey, CA; Naval Postgraduate School
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Abstract
For years, Department of Defense (DOD) acquisition professionals have used the lowest price technically acceptable (LPTA) source selection strategy to obtain goods or services in budget-constrained environments. In 2019, source selection guidance in DFARS 215.101-2-70 was updated with new requirements that appear to limit the usage of LPTA. Industry feedback on the new source selection guidance suggests that the update overcorrects prior guidance, which contributed to the DOD’s prevalent usage of the LPTA strategy in prior years. New DFARS 215.101-2-70 guidance is also widely criticized for containing high levels of ambiguous language that industry experts believe could create both confusion at contracting agencies and an increase in protests from defense contractors.
The purpose of this research is to apply stakeholder theory to source selection strategies used in government acquisitions. Specifically, this research explored the consequences of ambiguous language found in current and prior source selection guidance and aimed to determine the potential impacts on DOD acquisition stakeholders when the LPTA strategy is overused and underutilized.
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Distribution Statement
Approved for public release. distribution is unlimited
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.