Overview
This section defines the "Best Value Continuum," a range of source selection approaches that allow the government to balance the relative importance of cost or price against non-cost factors like technical capability and past performance. It establishes the frameworks for the Tradeoff process and the Lowest Price Technically Acceptable (LPTA) process, dictated by the complexity and risk associated with the specific acquisition.
Key Rules
- The Continuum Concept: Best value is not a fixed point; as requirements become less defined or performance risk increases, technical and past performance considerations should play a more dominant role than price.
- Tradeoff Process (15.101-1):
- Used when it is in the Government's interest to potentially award to a higher-priced offeror with superior technical ratings.
- The solicitation must clearly state all evaluation factors, subfactors, and their relative importance (e.g., whether non-cost factors are significantly more, equal to, or less important than price).
- The Source Selection Authority (SSA) must document the rationale for any tradeoff, explaining why the perceived benefits of a higher-priced proposal merit the additional cost.
- Lowest Price Technically Acceptable (LPTA) (15.101-2):
- Appropriate only when requirements are clearly defined and there is minimal value in exceeding the government's minimum standards.
- No Tradeoffs: The award is made to the lowest-priced offer among those deemed "technically acceptable." Proposals are not ranked by technical merit.
- Statutory Restrictions: Except for the DoD, LPTA use is restricted and requires specific justification. It is generally discouraged or prohibited for complex requirements like cybersecurity, IT services, systems engineering, and healthcare services.
- Tiered Evaluations (15.101-3): Agencies are prohibited from using "cascading" or tiered evaluation of small business offers for multiple-award contracts unless they possess specific statutory authority.
Practical Implications
- Proposal Strategy: For LPTA acquisitions, contractors should focus on "meeting the bar" at the lowest possible cost, as any technical excellence beyond the minimum requirements provides no competitive advantage. In Tradeoff acquisitions, contractors should highlight "value-adds" and risk-mitigation strategies that justify a price premium.
- Administrative Burden: Contracting Officers must provide significant documentation and meet six specific criteria (per 15.101-2(c)) to justify using LPTA for non-DoD agencies, reflecting a policy shift toward prioritizing quality and innovation in knowledge-based professional services.