What Can LPTA Source Selection Procedures Be Used For?

DOD recently issued a final rule to implement sections of the FY17 and FY18 NDAAs that establish limitations and prohibitions on the use of the lowest price technically acceptable (LPTA) source selection process.  The final rule is codified at DFARS 215.101-2-70 (revised Oct. 1, 2019), and provides the limitations that apply if a CO wants to use LPTA source selection procedures.

Let’s take a step back to 1983 when I first started in government contracting.  My dive into the deep end of contracting came when I started working in operational contracting.  They are responsible for all the care and feeding of the base literally.  I started out buying commodity items and two things affected how we bought them.   The whole hoopla about NASA buying overpriced bolts and toilet seats; and FAR Part 12, Acquisition of Commercial Items.

And for what I was buying (everything from test tubes, to generators, to gel pack “birds” for aircraft windscreen testing), making award to the lowest bidder just made sense.

Then I moved into the specialized services section and it literally changed my life.  Services became my favorite types of acquisitions.  However, if you are buying G-force simulation trainers for human testing that included the services to run them, repair them, and ensure no harm came to that airman, then do you want the lowest price or do you want to couple it with some technical tradeoffs that identify who can do it best?

So back to DFARS 215.101-2-70, which states that the lowest price technically acceptable source selection process shall only be used when:

1. Minimum requirements can be described clearly and comprehensively;
2. No value is achieved from a proposal that exceeds the minimum requirements;
3. The proposed technical approaches will require no subjective judgment;
4. Reviewing all tech proposals would not identify features with value or benefit;
5. No additional innovation or future technological advantage will be realized;
6. Goods to be procured are predominantly expendable or nontechnical;
7. The contract file documents the lowest price reflects full life-cycle costs;
8. The CO documents the contract file to address using LPTA processes.

It goes on to state that contracting officers shall avoid using LPTA for acquisition of—

1. IT services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, or other knowledge-based services;
2. Items designated by the requiring activity as personal protective equipment; or
3. Services designated by the requiring activity as knowledge-based training or logistics services in contingency operations or other operations outside the United States, including in Afghanistan or Iraq.

And finally, the outright prohibitions – COs shall not use LPTA to procure:

1. Personal protective equipment or an aviation critical safety item, when the requiring activity advises the CO that the level of quality or failure of the equipment or item could result in combat casualties.
2. To acquire engineering and manufacturing development for a major defense acquisition program when budgetary authority is requested beginning in FY19.
3. COs must make award decisions based on best value factors and criteria for an auditing contract.

So, the powers that be have decided to delineate the parameters whereby LPTA can be used, taking even more power away from COs. Wait, don’t start yelling yet.  They have also provided very specific boundaries around what LPTA should NOT be used for.  And that is a good thing.  I’ve seen too many contracts (and yes contractors) fail because the contracts were too technically complex based on specific requirements to be awarded to the lowest bidder, and yet they were.

While I appreciate the attempt to create specific limitations on the use of LPTA and I agree with the restrictions in spirit, I am appalled every time Contracting Officers lose more of their powers.