LPTA versus tradeoff: analysis of contract source selection strategies and performance outcomes

Abstract

The Department of Defense (DOD) spends hundreds of billions of dollars annually to procure highly complex weapon systems, supplies, and services. Due to recent budget constraints, DOD stakeholders are closely examining the strategies and methodologies contracting professionals employ to acquire what the DOD needs. Contracting professionals may use lowest price technically acceptable (LPTA) and tradeoff strategies to procure requirements to maximize the overall best value to the government. The purpose of this research is to determine if a relationship exists between the contract source selection strategy employed, either LPTA or tradeoff, and the contract pre-award and post-award performance metrics. Data were collected from contract files located at Naval Sea Systems Command to determine the potential relationship between LPTA and tradeoff performance metrics. The findings of this research suggest that not enough data were collected to answer the research questions. However, the data contained in this report will be incorporated into a pool of data gathered from previous research efforts to provide adequate statistical power to answer the research questions. The report concludes with recommendations for further research.