An Analysis of DoD's Use of the Lowest Price Technically Acceptable Acquisition Strategy and Recommendations for Improvement

Abstract

The DoD's use of the lowest price technically acceptable (LPTA) source selection method is a source of concern for many in the defense acquisition community. Some argue that the DoD has increasingly misused LPTA to procure complex goods and services that are difficult to define. Using data collected from the Federal Business Opportunities (FBO) website and the Federal Procurement Data System (FPDS), this report seems to test claims that the DoD has increased its use of LPTA and that its usage has yielded poor results (as measured by contract cancellation rates and vendor re-award rates). The results from this data query are mixed and show that LPTA usage has increased for all types of procurements and that there is some dissatisfaction associated with LPTA. The results, however, are questionable due to data validity concerns. This report concludes with recommendations for improving data collection for DoD source selection methods and contract cancellation rates.