BidFinds | Government Contracts for IT, Medical, Consulting & Services

Quick Answer

Lowest Price Technically Acceptable (LPTA) is an evaluation method where the government awards to the lowest-priced offeror whose proposal meets all technical requirements—with no credit for exceeding requirements. In LPTA, price is king: a barely-acceptable proposal wins over a superior solution if it's cheaper.

Pass/Fail

Technical Rating

Price

Selection Factor

No Credit

For Exceeding

FAR 15.101-2

Authority

What is LPTA?

Lowest Price Technically Acceptable (LPTA) is a source selection approach where technical proposals are evaluated on a pass/fail basis against stated requirements. Among all technically acceptable proposals, the lowest-priced offer wins.

Unlike best-value trade-off procurements where superior technical approaches can justify higher prices, LPTA offers no advantage for exceeding requirements. A proposal that barely passes wins over a superior proposal if it's priced lower.

LPTA Key Characteristics

Binary Technical: Acceptable or unacceptable—no gradations
Price Determinative: Lowest acceptable price wins
No Trade-off: Technical excellence doesn't justify premium
Clear Requirements: Must have well-defined requirements
Commodity-Like: Best for standardized acquisitions

When Agencies Use LPTA

FAR 15.101-2 specifies conditions where LPTA is appropriate. Not all procurements are suitable for LPTA.

Appropriate for LPTA

• Well-defined, established requirements
• Commodity or commercial items
• No expected benefit from innovation
• Technical solutions readily available
• Risk of unsuccessful performance low
• Past performance/experience sufficient

Not Appropriate for LPTA

• Complex requirements needing innovation
• High technical risk
• Professional services requiring judgment
• Mission-critical systems
• Requirements not clearly definable
• Where superior performance adds value

NDAA Restrictions (DoD)

The National Defense Authorization Act restricts DoD use of LPTA for certain categories including IT services, systems engineering, auditing, and cybersecurity. Check current regulations before assuming LPTA applies.

How LPTA Evaluations Work

LPTA Evaluation Process

Review Technical Proposals

Each proposal evaluated against minimum technical requirements

Rate Acceptable/Unacceptable

Binary determination—meets requirements or doesn't

Rank by Price

Acceptable proposals ranked from lowest to highest price

Award to Lowest

Contract awarded to lowest-priced technically acceptable offer

What Makes "Acceptable"

• Meets all mandatory requirements
• Demonstrates understanding of work
• Provides required certifications
• Shows capability to perform
• Acceptable past performance

What Gets No Credit

• Superior technical approaches
• Additional capabilities offered
• Exceptional past performance
• Innovation beyond requirements
• Value-added services

Writing LPTA Proposals

LPTA proposals require a different approach than best-value proposals. Focus on demonstrating compliance, not excellence.

LPTA Proposal Do's

✓ Address every requirement explicitly
✓ Use clear compliance matrix
✓ Demonstrate you meet minimums
✓ Keep proposal concise
✓ Focus on price competitiveness
✓ Verify all mandatory elements included

LPTA Proposal Don'ts

✗ Spend on gold-plated solutions
✗ Over-engineer your approach
✗ Exceed page limits with extras
✗ Add unrequested features/costs
✗ Ignore price competitiveness
✗ Submit without compliance check

LPTA Proposal Checklist

☐ All mandatory requirements addressed
☐ Compliance matrix complete
☐ Required certifications included
☐ Past performance references provided
☐ Key personnel meet requirements

☐ Price breakdown per format
☐ All attachments included
☐ Page limits respected
☐ Submission format correct
☐ Deadline confirmed

Pricing Strategy

Price determines the winner in LPTA. Your pricing strategy must balance competitiveness with profitability.

Minimize Scope

Propose exactly what's required—no more. Every extra feature adds cost without competitive benefit.

Optimize Labor Mix

Use the most cost-effective labor categories that meet requirements. Don't over-staff with senior personnel.

Reduce Indirect Rates

Lower overhead and G&A rates directly reduce price. Ensure your rate structure is competitive.

Consider Lower Profit

Sometimes winning at lower margin beats losing. Consider strategic pricing for must-win opportunities.

Don't Buy the Contract

Pricing below cost to win is unsustainable and can lead to poor performance, losses, and reputational damage. LPTA doesn't mean "lowest price at any cost." Know your floor and don't go below it.

LPTA Risks & Limitations

Contractor Risks

Race to Bottom: Aggressive pricing can become unsustainable
No Quality Premium: Excellence provides no competitive advantage
Technical Oversimplification: Complex work reduced to checkboxes
Incumbent Advantage: Incumbents know actual costs better
Low Margins: Limited profit potential

Government Risks

Quality Issues: Lowest price may mean lowest quality
Performance Failures: Underbidders may struggle to perform
Lost Innovation: No incentive for better solutions
Turnover: Low wages lead to staff churn
Hidden Costs: Poor performance costs more long-term

When to Walk Away

• You can't price competitively and make margin
• Requirements are vague or likely to change
• Incumbent has significant cost advantage
• The work doesn't align with your strengths
• Risk of performance failure is too high

Alternatives to LPTA

Understanding other evaluation methods helps you recognize when LPTA may be inappropriate—and potentially protestable.

Evaluation Method Comparison

Best Value Trade-Off

Technical and price factors traded against each other. Superior technical approaches can justify higher prices. Most flexible method.

Highest Technically Rated (HTR)

Among proposals with fair and reasonable prices, award to highest technical rating. Opposite of LPTA—price is just a pass/fail.

Value Adjusted Total Evaluated Price

Price adjusted based on technical scores. Creates mathematical relationship between technical value and price.

Challenging LPTA Selection

If you believe LPTA was inappropriately used, potential protest grounds include:

• Requirements are not well-defined or stable
• Innovation/quality provides significant value
• Work is complex professional services
• DoD LPTA restrictions apply
• Risk of unsuccessful performance is high

Frequently Asked Questions

Can I win LPTA without being the absolute lowest price?

Only if lower-priced proposals are technically unacceptable. The agency must award to the lowest acceptable price. If a lower bidder fails technical evaluation, you may win at a higher price.

Should I offer value-adds in LPTA proposals?

Generally no. Value-adds cost money without competitive benefit. Only include them if they don't increase price or if they're required to be acceptable. Focus on meeting requirements at lowest cost.

How do I know if a procurement will be LPTA?

The solicitation will state the evaluation method. Look for "Lowest Price Technically Acceptable," "LPTA," or language indicating technical proposals are evaluated only as acceptable/unacceptable with award to lowest price.

Is past performance evaluated in LPTA?

Often yes, but typically as acceptable/unacceptable or satisfactory/unsatisfactory—not on a graded scale. You need to demonstrate acceptable past performance, but exceptional performance provides no advantage.

What if I'm rated technically unacceptable?

Your proposal is eliminated from competition regardless of price. Request a debrief to understand what was missing. Technical unacceptability is often due to missing requirements or non-compliant certifications—fixable issues for next time.

Find Opportunities That Fit Your Strategy

Not every opportunity is right for LPTA competition. BidFinds helps you identify contracts that match your competitive strengths across all evaluation methods.

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