Overview
FAR Subpart 15.1 defines the "Best Value Continuum," outlining the processes and techniques agencies use to design competitive acquisition strategies. It provides the framework for two primary source selection methods—the Tradeoff Process and the Lowest Price Technically Acceptable (LPTA) process—while also establishing guidelines for using oral presentations to streamline evaluations.
Key Rules
- Best Value Continuum: Best value is not a single point but a range; as requirements become less defined or performance risk increases, technical and past performance factors become more important relative to price.
- Tradeoff Process (15.101-1):
- Permits award to an offeror who is not the lowest priced or highest technically rated.
- The solicitation must clearly state all evaluation factors and their relative importance (e.g., "Technical is significantly more important than cost").
- Any decision to pay a price premium must be documented with a rationale showing that the perceived benefits merit the additional cost.
- LPTA Process (15.101-2):
- Award is made to the lowest-priced proposal that meets the minimum "acceptability" standards.
- Tradeoffs are strictly prohibited; proposals are evaluated as "pass/fail" rather than ranked.
- Statutory Restrictions: Except for DoD, LPTA use is heavily restricted for complex services (IT, cybersecurity, systems engineering, health care) and requires specific written justification.
- Oral Presentations (15.102):
- May substitute for or augment written proposals to streamline the process.
- Cannot be used for Representations and Certifications or the signed offer sheet.
- Any oral statements intended to be material terms of the contract must be memorialized in writing.
Responsibilities
- Contracting Officer (CO):
- Must justify and document the use of the LPTA process in the contract file.
- Must refer small business "unacceptable" past performance ratings to the Small Business Administration (SBA) for a Certificate of Competency.
- Responsible for maintaining a record of oral presentations (e.g., video, audio, or notes) that the government relied upon for the decision.
- Source Selection Authority (SSA):
- Determines the appropriate record-keeping method for oral presentations.
- Ensures the rationale for any tradeoff is clearly documented in the source selection decision.
- Agencies:
- Must ensure requirements are clearly definable before selecting the LPTA process.
- Must avoid "tiered" (cascading) evaluations for multiple-award contracts unless authorized by statute.
Practical Implications
- Shift in Strategy: Real-world contracting has seen a significant move away from LPTA for professional and technical services due to the 2019 NDAA restrictions. Contractors should expect the Tradeoff process for "knowledge-based" requirements where quality varies significantly.
- Protest Prevention: The requirement to document the "perceived benefits" of a higher-priced proposal in a tradeoff is a frequent flashpoint for GAO protests. Agencies must prove that the "extra value" is actually worth the extra taxpayer dollars.
- Efficiency via Orals: For complex staffing or transition plans, oral presentations allow the government to assess the "key personnel" directly. For contractors, this means the team doing the work—not just a professional proposal writer—must be prepared to defend the technical approach in real-time.
- Past Performance Nuance: In LPTA, past performance is treated as a binary (acceptable/unacceptable). If a contractor has no relevant history, they cannot be rated "unacceptable" solely for that reason; they must be treated as neutral or the CO must follow SBA referral procedures for small businesses.