15.101-2 Lowest price technically acceptable source selection process
Source: FAR 15.101-2 on acquisition.gov
LPTA should only be used when minimum requirements are clear, exceeding them offers no value, and price is the primary differentiator—especially for non-DoD agencies, which face strict limitations and documentation requirements.
Overview
FAR 15.101-2 outlines the requirements and limitations for using the Lowest Price Technically Acceptable (LPTA) source selection process in federal acquisitions. LPTA is appropriate when the best value is expected from the technically acceptable proposal with the lowest price. The regulation details when LPTA can be used, the evaluation process, and specific restrictions, especially for civilian agencies (non-DoD) as mandated by the John S. McCain National Defense Authorization Act for Fiscal Year 2019. It also specifies the types of procurements where LPTA should be avoided and the documentation required to justify its use.
Key Rules
- Appropriate Use of LPTA
- LPTA is used when the best value is expected from the lowest-priced, technically acceptable offer.
- Evaluation Criteria
- Solicitations must clearly state evaluation factors and standards for acceptability. Proposals are evaluated for acceptability, not ranked by non-cost factors. Tradeoffs are not allowed.
- Past Performance
- Past performance may be excluded as an evaluation factor if justified and documented. If included, it must be evaluated per FAR 15.305, but not comparatively. Small business past performance issues must be referred to the SBA for a Certificate of Competency.
- Restrictions for Civilian Agencies
- LPTA can only be used when minimum requirements are clear, exceeding requirements offers no value, and technical proposals require minimal subjective judgment. Certain service procurements (e.g., IT, healthcare, knowledge-based services) should avoid LPTA.
- Documentation
- The contracting officer must document the justification for using LPTA.
Responsibilities
- Contracting Officers: Ensure LPTA is appropriate, document justification, set clear evaluation criteria, and avoid LPTA for restricted services. Refer small business past performance issues to SBA.
- Contractors: Submit proposals that meet or exceed minimum technical requirements and understand that price is the primary differentiator.
- Agencies: Oversee compliance with LPTA restrictions and ensure proper documentation and process adherence.
Practical Implications
- LPTA is designed for acquisitions where exceeding minimum requirements provides no added value. Contractors must focus on meeting the stated minimums at the lowest price. Misuse of LPTA, especially for complex or knowledge-based services, can lead to compliance issues and procurement challenges. Proper documentation and adherence to restrictions are critical to avoid protests and ensure fair competition.
(a) The lowest price technically acceptable source selection process is appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price.
(b) When using the lowest price technically acceptable process, the following apply:
(1) The evaluation factors and significant subfactors that establish the requirements of acceptability shall be set forth in the solicitation. Solicitations shall specify that award will be made on the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non-cost factors. If the contracting officer documents the file pursuant to 15.304(c)(3)(iii), past performance need not be an evaluation factor in lowest price technically acceptable source selections. If the contracting officer elects to consider past performance as an evaluation factor, it shall be evaluated in accordance with 15.305. However, the comparative assessment in 15.305(a)(2)(i) does not apply. If the contracting officer determines that a small business’ past performance is not acceptable, the matter shall be referred to the Small Business Administration for a Certificate of Competency determination, in accordance with the procedures contained in subpart 19.6 and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637(b)(7)&num=0&edition=prelim" target="_blank">15 U.S.C. 637(b)(7)).
(2) Tradeoffs are not permitted.
(3) Proposals are evaluated for acceptability but not ranked using the non-cost/price factors.
(4) Exchanges may occur (see 15.306).
(c) Except for DoD, in accordance with section 880 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3701&num=0&edition=prelim" target="_blank">41 U.S.C. 3701 Note), the lowest price technically acceptable source selection process shall only be used when—
(1) The agency can comprehensively and clearly describe the minimum requirements in terms of performance objectives, measures, and standards that will be used to determine the acceptability of offers;
(2) The agency would realize no, or minimal, value from a proposal that exceeds the minimum technical or performance requirements;
(3) The agency believes the technical proposals 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;
(4) The agency 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 to the agency;
(5) The agency determined that the lowest price reflects the total cost, including operation and support, of the product(s) or service(s) being acquired; and
(6) The contracting officer documents the contract file describing the circumstances that justify the use of the lowest price technically acceptable source selection process.
(d) Except for DoD, in accordance with section 880 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3701&num=0&edition=prelim" target="_blank">41 U.S.C. 3701 Note), contracting officers shall avoid, to the maximum extent practicable, using the lowest price technically acceptable source selection process in the case of a procurement that is predominantly for the acquisition of—
(1) Information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, audit or audit readiness services, health care services and records, telecommunications devices and services, or other knowledge-based professional services;
(2) Personal protective equipment; or
(3) Knowledge-based training or logistics services in contingency operations or other operations outside the United States, including in Afghanistan or Iraq.