Is Your Business Keeping Pace With Changing Times In Government Contracting?January 7, 2015 – Articles Above The Law
Sequestration. Budget cuts. Reduced spending. Federal contractors know that these are challenging times – but is your business adapting in time to keep pace?
One consequence of the shrinking federal marketplace is a noticeable shift away from “best value” procurements and towards awarding contracts to the “lowest price, technically acceptable” (LPTA) offeror. In other words, rather than looking to contractors to demonstrate in detail what they can add to a project (based on past performance, subject matter expertise, management capabilities, etc.), agency decision making is being driven exclusively by the bottom line price – even on complex professional services contracts.
While there is certainly an argument to be made that the LPTA decision making model simply does not work on services contracts – the reality is that LPTA awards are here to stay for the foreseeable future.
So the question is – how should contractors alter their approach to compensate for this movement in agency decision making?
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This post originally appeared on the firm's The Federal Government Contracts & Procurement Blog.