LPTA Contracts Gaining Favor Among Agencies, but Give Vendors Less Incentive to Innovate, Study Says

From FierceGovernment | October 28, 2013

Lowest price technically acceptable procurements have been gaining favor among agencies, but that gives vendors less incentive to be innovative if the approach costs more, an Oct. 24 Market Connections and Centurion Research study says.

Under LPTA, agencies focus more on price than on past performance as long as the vendor meets minimal job requirements. So if a vendor comes to an agency with a unique solution that costs more than a competitor who comes with a more basic solution, the agency is more likely to choose the cheaper solution as long as it meets the minimum requirements.

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