LPTA (Lowest Price Technically Acceptable)

LPTA is an evaluation approach where the contract is awarded to the lowest-priced offeror whose proposal meets all technical requirements. Once deemed technically acceptable, only price matters.

How It Works

LPTA is appropriate for well-defined requirements where technical differentiation adds no value — like commodity supplies or simple services. Under LPTA, there is no benefit to exceeding minimum requirements. Your proposal needs to be technically acceptable (pass/fail) and then have the lowest price. Recent policy changes have limited the use of LPTA for certain contract types.

Example

An agency solicits for standard office cleaning. The RFP uses LPTA evaluation. Five firms submit technically acceptable proposals. The firm with the lowest monthly price wins, regardless of how much the others might exceed minimum quality standards.

Related Terms

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