Improper Use of Lowest Priced Technically Acceptable ("LPTA") Method

A recent decision by the Government Accountability Office (“GAO”) explained that an agency had unreasonably determined that the statutory and regulatory requirements for use of the Lowest Priced Technically Acceptable (“LPTA”) award requirements were satisfied.  The Mission Essential Group, B-433698.2, Jan. 8, 2025.  One vendor protested the solicitation.

The Air Force issued a fair opportunity proposal request (“FOPR”) for pilot augmentation support services in Europe and Africa.  The solicitation was issued to holders of an Air Force multiple award, indefinite delivery, indefinite quantity contract.  Mission asserted that the solicitation improperly provided for award based on an LPTA basis.

An LPTA solicitation must satisfy the following regulatory and statutory requirements;

(i) Minimum requirements can be described clearly and comprehensively and expressed in terms of performance objectives, measures, and standards that will be used to determine the acceptability of offers;

(ii) No, or minimal, value will be realized from a proposal that exceeds the minimum technical or performance requirements;

(iii) The proposed technical approaches will require no, or minimal, subjective judgment by the source selection authority as to the desirability of one offeror’s proposal versus a competing proposal;

(iv) The source selection authority has a high degree of confidence that reviewing the technical proposals of all offerors would not result in the identification of characteristics that could provide value or benefit;

(v) No, or minimal, additional innovation or future technological advantage will be realized by using a different source selection process;

(vi) Goods to be procured are predominantly expendable in nature, are nontechnical, or have a short life expectancy or short shelf life . . .;

(vii) The contract file contains a determination that the lowest price reflects full life‑cycle costs [. . .] of the product(s) or service(s) being acquired (see [Procedures, Guidance, and Information (PGI)] 215.101‑2‑70(a)(1)(vii) for information on obtaining this determination);[[6]] and

(viii) The contracting officer documents the contract file describing the circumstances justifying the use of the lowest price technically acceptable source selection process.

The decision also notes Defense Federal Acquisition Regulation (“DFARS”) 215.101‑2‑70(a)(1) (providing that LPTA “source selection process shall only be used when--” and listing all eight elements above.   Additionally, this DFARS subsection requires that contracting officers “avoid, to the maximum extent practicable,” using LPTA procedures for procurements that are “predominantly for the acquisition” of certain items or services including, as relevant here, “knowledge‑based professional services.” 

Mission asserted that requirements (i), (ii) and (vii) failed to meet the LPTA criteria, and also that Air Force had not avoided using LPTA procedures to the maximum extent and did not provide any rationale for why it would be impracticable for the Air Force to other source selection procedures. 

The GAO agreed with the Mission protest as follows:

(i)          Description of minimum requirements.  Contrary to the agency’s assertion, the FOPR doesn’t provide measurable minimum requirements to offerors and the Determination and Finding Memo (“D&F”) provides not further explanation.  Failing to provide these minimum standards leave offerors up to guess about the subtasks and thresholds for technical acceptability.

(ii)        Value from Exceeding Minimum Requirements. The agency’s justification that it will realize minimal or no value from a proposal exceeding minimum requirements cannot withstand logical scrutiny

(iii)       Full Life Cycle Costs. GAO found the justification inadequate and missing both justification and full and reasonable explanation.

(not numbered) Avoidance of LPTA Criteria to the Maximum Extent practicable. The GAO found nothing in the agency’s arguments that explains why it would be impractical for the Air Force to use other than LPTA procedures here.

The GAO sustained the protest on the above four points, concluding there was no basis to use LPTA source selection.

Takeaway. LPTA requires careful consideration of the statutory and regulatory factors discussed here, because it is subject to potential incorrect conclusions by the agency.  The detailed factors that must be considered before using LPTA must be fully considered and justified.

For other helpful suggestions on government contracting, visit:

Richard D. Lieberman’s FAR Consulting & Training at https://www.richarddlieberman.com/, and Mistakes in Government Contracting at https://richarddlieberman.wixsite.com/mistakes.