Students in our business development tools workshops often ask for suggestions on ways to address a “Lowest Price, Technically Acceptable (LPTA)” procurement. While we emphasize the importance and flexibility inherent in addressing a best-value procurement, the low-price approach also necessitates consideration. LPTA is not new, but its current application is more innovative than the original intent of commodity buys.

The winning LPTA contract is awarded to the contractor whose solution meets the acceptable parameters at the lowest price. FAR 15.101-2 states, “The lowest price technically acceptable source selection process is appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price.” The government must accept the lowest price from acceptable proposals.

There are several points to consider when addressing an LPTA procurement.

“Many contractors incorrectly interpret the procurement as a ‘low price shootout’ that precludes quality considerations. This is not necessarily the case.”

First, all proposals are evaluated to determine if the proposed solution is acceptable. At this stage, they are not ranked by cost/price factors.

This is exactly the same approach that is employed in the commodity acceptability “gate” approach. It is a basic pass/fail analysis and all passed proposals have the same standing to be considered for award.

Second, tradeoffs of additional benefits for a higher price are not permitted—but you may have “exchanges” or contract modification negotiations after award. These last two factors provide the government the flexibility they seek to enable them to use an LPTA contract.

The contractor’s first problem is to determine what is meant by “acceptable.” What is really needed and why? What flexibility is there in providing the requested goods or services? What financial and other constraints does the agency have in offering the solicitation?

The only way a bidder can have these answers is to have an in-depth knowledge of the customer, the true customer needs, and the requirements, goals, and objectives in offering the solicitation.

The LPTA opportunity is not a good place for casual marketing. Only the contractor who knows their customer well should devote the time, energy or money to attempt an LPTA bid.

Many contractors incorrectly interpret the procurement as a “low price shootout” that precludes quality considerations. This is not necessarily the case. The procurement type may be a result of constraints the agency cannot control, such as funding.

Remember, the customer is seeking a contractor to do something they do not have the capability to do themselves and this procurement is still an opportunity for you to demonstrate innovation and creativity.

There is no mystical solution to the LPTA procurement problem. The keys to success in the procurement rest in solid, detail-oriented and analytical approaches to business development.

Business development requires a strong relationship with the buying agency and its employees. As in any capture process, there is no room for guessing.

The better you know the people and their mission needs, desires, concerns, problems and strengths, the better you can prepare your solution.

When your team determines the potential requirements of the technical solution, question them. Why will they procure A and B when they really need C? The only way you can answer that is to get the information from the customer. Once you get an answer, question it again. Ask different people the same question and compare answers. Trust but verify is still the most important analytic tool you have.

Once you have determined and verified the true nature of the procurement and all of its parts, you can begin an incisive solution development. This may take place before the actual capture process begins.

“Look for new ways to solve a problem. Don’t assume that there is a pre-conceived solution.”

Beginning during the pre-capture phase before the procurement is released, continue to suggest ideas to your customer and evaluate their responses. Offer several solutions and evaluate the pros and cons of each.

Prioritizing potential solutions during the pre-capture phase will give you ideas that demonstrate different strengths that you can use during the actual capture process when you actually develop your solution.

An LPTA procurement is not a simple price shootout. It is a doorway and an opportunity for you to demonstrate the quality and professional capabilities of your company. Use it and you can profit from it!

Bill Hamilton is vice president of Advantage Consulting Inc. in Annandale, VA. Bill can be reached at bhamilton@acibiz.com or by calling (703) 642-5153. The company website is www.acibiz.com