15.101-2
Lowest price technically acceptable source selection process
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.