DOD REEXAMINING LPTA USE
In response to consistent contractor complaints, the Department of Defense is conducting a review of the use of Low Price Technically Acceptable (LPTA) contracts. While industry has raised concern over the past three years that LPTA is being misused, DOD leaders believe that this is merely anecdotal information based on a handful of cases. Nevertheless, Randall Culpepper of the Air Force was recently tasked with overseeing a more thorough examination of LPTA. While acknowledging that his service has had good success with LPTA use, Culpepper also stated that there are sometimes problems. Not surprisingly, companies will under-bid an LPTA requirement to get the work and then have performance and fulfillment issues later. While DOD officials may believe that this is a contractor problem, some introspection on their own expectations of getting Porsche-quality solutions at Ford prices is likely in order. Contractors are encouraged to participate in the Air Force-led study.