LPTA vs Best-Value

You've probably heard that agencies always go for "the cheapest price" if you've begun developing your approach to government contracts.

There are two primary pricing analyses used for government contracts: LPTA (Lowest Price Technically Acceptable) and BVP (Best Value Procurement). Knowing the differences and, more crucially, the priorities of the agencies you work with is crucial for vendors. 

A LPTA (Lowest Price Technically Acceptable) contract evaluates one dimension: price. If an offer meets the requirements of the request, it’s considered on the same playing field as the others. They look at the lowest priced quote first, and then look to see if its technically acceptable. You will not be considered above others if your service/product offers things the others don’t, such as a special fabric or higher quality items. 

More often, government contracts follow a newer method known as Best Value. If the agency is quoted $300, $500 and $800 for that chair, for example, things like condition, style, design, thread count, stitch quality, and warranty will come into play. The chair that costs $800 and is well-made and has a 3-year "wear-and-tear" warranty would be a preferable choice if it will be used frequently in the municipality's main lobby. Spending more than $300 would probably be a waste if it was going to be utilized in a temporary workplace. 

Try to provide specifics about your prior projects in your response if an RFP, RFQ, or other solicitation calls for a "experienced landscaper" to help design the exterior of the new public library.

If they ask for five years’ experience and you have 25, say so.

Tell them whether you've previously created the landscape for a brand-new structure.

In a Best Value scenario, it's crucial to make sure the agency thinks you're the candidate best suited for the position.

When it comes to products, include:

· Any applicable warranties

· distinctive features, colors, or design components

· hand-made or using unusual materials

· anything else that makes your product stand out from the competition.

Contrary to popular belief, your price won't speak for itself. Consider it this way: you have a far better chance of getting an agency buyer's business if they view your offer and say, "Wow, I get ALL OF THAT for THAT price?"