by Sid Jaffe
Every Government contractor that we meet with bemoans, justifiably, the harsh realities of LPTA, Lowest Price Technically Acceptable, solicitations. They all explain the difficulty of providing a cost-effective solution for Statements of Work that are frequently cut and pasted from old contracts that are not fully relevant, or expanded Statements of Work and with requirements far greater than that achievable for the budget available.
There are a number of actions that when used in a timely and effective manner, prior to an acquisition strategy being finalized can reduce the impact of LPTA on a bid. We are listing here a small portion of them, entitled, the SJ&A LPTA Plan.
- Learn through market research and your contacts all that you can about the opportunity, organization, people and competitors before the acquisition strategy is finalized.
- Prepare and enact a strong call plan before the opportunity comes out as an RFP or RFQ to provide evidence to the customer that you have a strong, risk-reduced value-based solution. If you address your concerns with the government early, you can have an effect on the procurement.
- Team effectively—often, teaming is the best way to achieve competitive pricing at an acceptable margin.
- Address the issues to the customer that puts the Government at risk and demonstrate how your firm has overcome those issues for past customers. Articulate the risks involved with a cost shoot out. Substantiate your approach well in the proposal.
For more information on the concept of an LPTA plan, contact Sid Jaffe at email@example.com or 703-855-3160.
Attend our presentation at AFCEA NOVA Small Business Committee event at 3:30 in Reston on January 29, 2015. Seating is limited. Register at the AFCEA NOVA web site. https://www.afceanova.org/events.