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The Lowest Price, Technically Acceptable (LPTA) Procurement Landscape

Published: August 31, 2015

Deltek’s Lowest Price, Technically Acceptable (LPTA) Procurement Landscape report identifies trends in the use of LPTA methods by federal agencies and outlines the risks associated with LPTA.

The use of Lowest Price, Technically Acceptable (LPTA) source selections in government contracting has become an unavoidable part of doing business with U.S. federal agencies. Deltek leverages insight from government and industry thought-leaders and a broad range of procurement data to identify the policy, budget, and technological factors contributing to the use of LPTA. Deltek’s analysis outlines trends in agency use of LPTA, discusses the risks to vendors associated with LPTA, and suggests strategies that can be used to mitigate those risks.

Key Findings

Fiscally-challenged federal agencies are using LPTA acquisitions to achieve value and reduce the cost of goods and services for information technology and non-IT alike while simplifying acquisitions and reducing award protests. However, the mixed results derived from LPTA use have generated criticism from both government and industry professionals.

Major findings of the analysis include:

  • The overall use of LPTA appears to be declining as scrutiny increases. However, its use within services contracting remains steady at approximately 30% of LPTA-related procurements.
  • From FY 2009-2014, an average of 18% of LPTA procurements were for IT products and services.
  • A combination of pressure on agency budgets, the standardization of technology, and growing shortage of seasoned acquisition professionals in government is driving the use of LPTA.
  • Although DOD represents the majority of LPTA-related procurements discovered (approximately 60%), growth of LPTA use has been faster within civilian agencies (55% vs. 24% within DOD) between FY 2009-FY 2014.
  • If misused, LPTA has the potential to harm the industrial base supporting the federal government by driving contractors out of the public sector.

Critical Insight for Vendors

Deltek’s Lowest Price, Technically Acceptable (LPTA) Procurement Landscape report provides valuable insight into the use of LPTA that vendors need to compete. The report provides a data-based view of the use of LPTA in the federal market (including IT) from FY 2009 to FY 2014.

The report will help federal contractors:

  • Identify trends in the use of LPTA source selections by federal agencies.
  • Understand the policy, budgetary, and technology factors driving the use of LPTA.
  • Learn the risks associated with contract awards based on LPTA source selections.
  • Identify the Civilian and Defense departments that are most using LPTA.
  • Discover the types of products and services being procured using LPTA.
  • Determine strategies for dealing with LPTA to mitigate business impact.
Deltek's Lowest Price, Technically Acceptable (LPTA) Procurement Landscape report is delivered in PowerPoint® format and includes a PowerPoint® Executive Briefing and an Excel® workbook.
INTRODUCTION
  • Purpose of This Report
  • Scope and Methodology
  • About the Data
  • Key Findings
  • LPTA Analysis Snapshot
LPTA DRIVERS AND RISKS

TOTAL FEDERAL MARKET OVERVIEW

LPTA IN FEDERAL IT ACQUISITIONS

AGENCY ANALYSIS

Includes analysis of the following for each of the top 15 agencies:

  • Major factors impacting IT spending at the agency
  • Outook for cloud computing, data center consolidation, big data and mobility
  • Market factors and forecasts for the four technology segments:
    • IT Hardware
    • Software
    • IT Services-Professional Services and Outsoursing
    • Communications and Network Serivces
  • Frequently used contracts in the four technology segments
  • Major expiring contracts by 2017
Top 15 Departments/Agencies
  • Army
  • Air Force
  • Navy
  • Defense Agencies
  • Homeland Security
  • Justice
  • Veterans Affairs
  • Health & Human Services
  • Interior
  • Commerce
  • NASA
  • Agriculture
  • Treasury
  • GSA
CONCLUSIONS AND RECOMMENDATIONS
  • Conclusions and Recommendations
APPENDIX
  • Terms and Definitions