Potential of ‘LPTA’ to Drive Further Innovation

In response to continued cuts in military spending, the U.S. government has chosen to follow a more cost driven approach to its contract activity over recent years. This practice is commonly referred to as Lowest Price Technically Acceptable (LPTA), and critics of the practice raise concerns that decisions on products are purely based on pricing and don’t take any other criteria into account. Some are of the view that it will only encourage military contractors to cut corners to win bids, and that emphasis on maintaining quality solutions by using quality product is lost.

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