UNCLASSIFIED
U.S.Army
Army
Contracting
Command
U.S.
Contracting
Command
Aberdeen
Proving
Aberdeen
Proving
GroundGround
“Best Value Continuum” LPTA vs. Best Value
Trade-off – Take-Aways
• New DOD Source Selection Procedures Published 3/31/16
• Continue to seek “best value” to the Warfighter & the Nation
• Introduces Concept of Value Added Total Evaluated Price (VATEP)
 Trying to remove subjectivity from Tradeoff decisions
 “Subjective Tradeoff” vs VATEP”
• LPTA Is NOT the wave of the future
 Seeing movement away from using LPTA, as it is not the cost cutting panacea it
was once thought to be
• Improved Discussions
 Best practice to discuss proposal “weaknesses” via Evaluation Notices (EN)
 Face-to-face discussions to improve understanding and strengthen overall negotiations
1
UNCLASSIFIED
APPROVED FOR PUBLIC RELEASE
UNCLASSIFIED
U.S.Army
Army
Contracting
Command
U.S.
Contracting
Command
Aberdeen
Proving
Aberdeen
Proving
GroundGround
“Best Value Continuum” LPTA vs. Best
Value Trade-off – Take-Aways (cont.)
• Cost is considered on every evaluation
 When proposals become closer in technical capabilities/ratings, then cost
becomes a greater factor
 Movement away from non-cost factors being “Significantly More Important Than
Cost”
• Firm-fixed price and commercial items are (again) trying to gain traction in
early stages of procurement
 But FFP is difficult in development efforts
 Commercial items will continue to stressed, and Prime contractors are encouraged
to find commercial solutions
• The landscape of the “Incumbent Advantage” has changed:
 The incumbent cannot expect to receive awards for high cost contracting solutions
 The Government wants incumbent contractors to find efficiencies and reduced
costs as the prime contractor
•It is viewed as a prime’s responsibility to reduce costs/find efficiencies2
 Trade-offs will still be made, but the premiums are going down
UNCLASSIFIED
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APPROVED FOR PUBLIC RELEASE