Reed Smith Client Alerts

On September 26, 2019, the DOD issued a final rule to implement statutory restrictions on the use of the LPTA source selection process. The final rule is intended to address the perceived overuse of the LPTA process by establishing clear conditions that must be met before DOD agencies may utilize the LPTA process for a given source selection. The rule became effective on October 1, 2019.1

FAR 15.101-2 defines the LPTA process as being appropriate when the best value to the procuring agency is expected to result from the selection of the technically acceptable proposal with the lowest price. The LPTA process is one of many that may be used to design competitive acquisition strategies and is part of FAR Part 15's best value continuum. The LPTA process has been the subject of significant criticism recently. It has been described as an overused process that results in the U.S. government obtaining low quality products in a "race to the bottom," where quality and functionality often may not be available at the absolute lowest pricing level.

The DOD final rule implements applicable sections of the National Defense Authorization Acts for fiscal year 2017 and 2018. The new DOD rule effectively amends the Defense Federal Acquisition Regulations Supplement (DFARS) by incorporating the statutorily mandated limitations and prohibitions on the use of the LPTA process and updating the DFARS Procedures, guidance, and information (PGI) to provide guidance to agency officials in this area.