November 22 2013 Copyright (c) 2013 Business Research Services Inc. 301-229-5561 All rights reserved.

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  • Agency officials: ‘concerns’ about LPTA
    Study: LPTA use rising

    Despite a recent push for lowest-price technically-acceptable (LPTA) procurements within the federal government, some officials are skeptical about the approach.

    Jan Frye, deputy assistant secretary for acquisition and logistics at the Veterans Affairs Department, was asked about LPTA at a recent forum hosted by the Minority Business Roundtable.

    LPTA “is very concerning to me as well,” Frye said. “For years, it was best value. I have concerns about contracting officers getting the cheapest thing they can get.”

    In providing health care, in particular, the VA has to be scrupulous about not cutting corners to avoid the risk of inferior, even possibly dangerous, products, Frye said. “Especially in healthcare, we should not be driven to the lowest price point,” Frye said.

    At a separate event hosted by SECAF, Mitch Ross, director of national acquisitions and grants for the National Oceanic and Atmospheric Administration, said he had doubts about LPTA.

    “LPTA is good for commodities, but it is not normally suitable for services. I hope we get away from it. If it is heavily used, we’ll put a stop to it,” he added, to applause. Meanwhile, new research shows that the number of federal LPTA solicitations and awards has increased sharply.

    In a study commissioned by Federal News Radio, the Govini research firm found 3,165 federal LPTA solicitations, and 1,014 federal LPTA awards, in fiscal 2009.

    By fiscal 2013, the numbers had more than doubled, even though not all the data is in yet, Govini reported. Agencies released 4,230 LPTA solicitations and made 2,166 LPTA awards in fiscal 2013, based on data available to date.


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