LPTA Contracts Stifle Government Innovation

From Information Week Government | October 25, 2013

Shrinking budgets and tight fiscal restraints are pushing federal agencies to use “lowest price technically available” (LPTA) contracts more frequently, a move that may be sacrificing long-term value in the quest for short-term savings.

According to new government market research released Oct. 24, the LPTA approach has its share of potential pitfalls: contracts may be going to less qualified companies, standards of performance may be lowered and the approach may not be optimum for services or product development.

One thing that doesn’t seem up for debate: LPTA use is expected to rise in the next three years, according to the research.

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