Presented by Dale Williams and Sunil Shamlal

1. JUNE 19 – 21, Bethesda, MD
Pricing to Win: Lowest-Priced Technically
Acceptable (LPTA) vs Best-Value Strategies
Presenters: Sunil Shamlal, President

2. Today’s Discussion…
 Distinction of LPTA & BV
 Communicating the Government Requirement
 Industry Response to Government
Requirement
 Alignment of Sec M to Contracting Method
 Consequences of Misalignment

3. 3
Distinction Between LPTA and BV
Tradeoff process. (Best Value)
Permits tradeoffs between cost or price and non-cost factors. This allows the
Government to accept other than the lowest priced proposal.
The perceived benefits of the higher priced proposal shall merit the additional cost, and the
rationale for tradeoffs must be documented in the file in accordance with 15.406.
Lowest Price Technically Acceptable (LPTA)
This source selection process (FAR 15.101-2) is where the government
determines that the lowest price is awardable over the complaint technical
offering of all proposals.
Tradeoff: A vendor may cost more but the value I receive
far exceeds the price
LPTA: I know exactly what I want. The vendor who meets
my need at the lowest price receives an award

4. Questions…
 Who thinks that LPTA is a good acquisition
method?
 Why or Why not?

5. Communication
 Communicating the government requirements
are essential to either contracting method
Communication Type LPTA Trade Off
 PWS Detailed Less Detailed
 Section L Well Designed Clear
 Section M Linked Linked and Clear
 Section J Provide More Provide More

6. Industry Response
Example 1
 Government Requirement
 The Department of ABC requires a 17 story building in West Seattle
(WS)
 Company A Response PRICE $100
 We have surveyed the area, performed a soil load bearing analysis, and
studied the rain and wind patterns for WS. These are attached as
Appendix A
 We will create the structure in stages while controlling the flow of traffic
as shown in the traffic management plan. See detailed Integrated
Master Schedule (IMS) in Appendix B
 Our design of the foundation and column structure take into
consideration the 30 year ground fault analysis and have created a
concrete design that manages the likelihood of seismic activity for the
region

7. Industry Response
Example 1 continued
 Government Requirement
 The Department of ABC requires a 17 story building in
West Seattle (WS)
 Company B Response PRICE $91
 We have performed a survey of the area (see
Appendix A)
 The structure will be created by July 2019, the
completion date. High Level Plan is attached
 Our design is compliant with federal, state, and local
standards and accounts for all variables.

8. Question…
 Which company receives an award if this is an
LPTA source selection?

9. What has the highest impact on the
decision?
a) The method of contracting
b) The evaluation criteria
c) The PWS details
d) All of the above are equal

10. Alignment of Sec M to Contracting Method
 Demonstrate how you will
complete your design, clearly
showing consideration for the
structure’s area
 Show how you will manage traffic
during construction
 Demonstrate your understanding of
the design parameters how an IMS
will manage risks
 Provide details of the senior
leadership assigned to the project,
their roles and responsibilities and
how your selected team benefits
the project. Include Resume for
all.
 Pick a 3 week period of the project
and develop a detail WBS with all
dependencies to highlight your
approach for project management
 Provide the details of your technical
approach Addressing
 Design considerations
 Project Management
 Schedule Management
 Your technical proposal should
demonstrate your understanding of
the project
 Define your team and provide
resume for all members of the team
 Show your approach to developing
a WBS
 Demonstrate how your project
management approach will reduce
risk
Section M Example 1 Section M Example 2

11. Result Scenario 1
 Government received 5 offers
 Contracting Method: LPTA
Company A Company B Company C Company D Company E
$130 $140 $220 $91 $135
TA TA+ TA++ NOT TA NOT TA
Award

12. Result Scenario 2
 Government received 5 offers
 Contracting Method: Trade Off
Company A Company B Company C Company D Company E
$143 $160 $220 $91 $142
Good Good Excellent Acceptable Unacceptable
Award

13. Result Scenario 3
 Government received 5 offers
 Contracting Method: LPTA
Award
Company A Company B Company C Company D Company E
$130 $140 $220 $91 $135
TA TA+ TA++ TA TA