How Low Can You Go: The Era of Lowest Price Technically Acceptable
•Download as PPTX, PDF•
0 likes•137 views
Maria Asuelimen teaches federal contractors winning strategies, appropriate uses, and communication techniques for using lowest price technically acceptable or LPTA.
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (9)
Similar to How Low Can You Go: The Era of Lowest Price Technically Acceptable
Similar to How Low Can You Go: The Era of Lowest Price Technically Acceptable (20)
More from Maria Asuelimen, MBA
More from Maria Asuelimen, MBA (6)
Recently uploaded
Recently uploaded (20)
How Low Can You Go: The Era of Lowest Price Technically Acceptable
- 1. JUNE 21 – 23, 2016 | San Diego, CA 1 GOVERNMENT CONTRACT PRICING SUMMIT 2016
- 2. JUNE 21 – 23, 2016 | San Diego, CA AMA Consulting Capabilities Strategic Marketing Planning Small Business Certifications Proposal Management Support Federal Contracting Support Entrepreneurship & Leadership Development Trainings 2
- 3. JUNE 21 – 23, 2016 | San Diego, CA How We Work 3 Excellence, Diligence, Integrity and Compassion Outcomes Oriented Agile Approach Ease of Interaction Networks
- 4. JUNE 21 – 23, 2016 | San Diego, CA Our Clients • 8(a) • WOSB • HUBZONE • SDVOSB • VOSB Small Businesses • IT • Healthcare • Staffing • Construction • Professional Services • Security Industries 4
- 5. JUNE 21 – 23, 2016 | San Diego, CA Key Takeaways Simple winning strategies contractors can adopt to not be negatively impacted by LPTA’s. Appropriate uses of LPTA source selection and benefits to agencies. Effective communication strategies between industry and government around this topic. 5
- 6. JUNE 21 – 23, 2016 | San Diego, CA 6 What is LPTA? Source selection method: Lowest priced, technically acceptable FAR 15.101-2 Proposals evaluated for acceptability; Not ranked using cost/price factor Past performance need not be an evaluation factor Undermines bid integrity, lowers performance standards, and eliminates improvement and innovation incentives. Simplify award criteria, control costs, and reduce protests Evaluation factors establish requirements for acceptability
- 7. JUNE 21 – 23, 2016 | San Diego, CA LPTA General Impact SOURCE: http://marketconnectionsinc.com/index.php/Reports/the-new-reality-the-lpta-impact-study.html 7 The Avg. Length Of An LPTA Contract is 3.6 Years With An Avg. Annual Contract Value Of $18 M CONTRACTORS GOVERNMENT 71% AWARDED TO LESS QUALIFIED COMPANIES 59%AWARDED TO LESS QUALIFIED COMPANIES 59% BELIEVE IN INCREASE OF LPTA PROCUREMENTS IN NEXT 3 YRS 42% BELIEVE IN INCREASE OF LPTA PROCUREMENTS IN NEXT 3 YRS 43% BELIEVE LPTA LOWERS PERFORMANCE & INNOVATION 31% BELIEVE LPTA LOWERS PERFORMANCE & INNOVATION 65% LPTA SACRIFICES LONG TERM VALUE 43% LPTA SACRIFICES LONG TERM VALUE
- 8. JUNE 21 – 23, 2016 | San Diego, CA Agencies Rationale for LPTA 8 Budget Constraints Simplified Award Criteria Reduced protest
- 9. JUNE 21 – 23, 2016 | San Diego, CA How To Best Use of LPTA 9 GOAL Non-Performance Risk Aversion and avoidance of mission interruption Clear definition of “requirements for acceptability” Well Defined Scope Limit use to commodities Price Realism Analysis
- 10. JUNE 21 – 23, 2016 | San Diego, CA LPTA Capture Strategy Does the opportunity open up a new employee base that will assist in putting downward pressures on your indirect rate structures? Does the opportunity strategically place or advance you within a high-growth customer? Does the opportunity allow you to introduce yourself to a new customer? Does the opportunity provide you the chance to bring new products or services to an existing customer? 10
- 11. JUNE 21 – 23, 2016 | San Diego, CA LPTA Tactics Align with efficiently priced partners/subcontract ors Price for the base of minimally acceptable requirements Analyze competitor pricing Identify/evalu ate key metrics to price the contract Implement cost efficient business models Align LPTA pursuits with strategic goals 11
- 12. JUNE 21 – 23, 2016 | San Diego, CA LPTA Agency & Industry Communication State source selection clearly in RFP Solicit Industry input from Industry in determining soliciting source selection type Use question period to clarify scope State assumptions in proposal 12
- 13. JUNE 21 – 23, 2016 | San Diego, CA LPTA Future LPTA is here to stay Secretary Kendall’s March 4, 2015 memo Opposing industry advocacy Promoting Value Based Defense Procurement Act of 2016 13
- 14. JUNE 21 – 23, 2016 | San Diego, CA 14 Thank You For Your Time 10104 Senate Drive Suite 208 Lanham MD 20706 www.amaconsultonline.com (301) 577-9300 @AMAConsultingLLC @AMAConsultingLLC@AMA_Consulting