How does the trend toward Lowest Price Technically Acceptable (LPTA) affect wages?

LPTA doesn’t need to mean lower wages

This article explores how different companies are responding to the increased reliance on LPTA source selection.

Source: Washington Business Journal, James Bach October 26, 2015

The government services industry is facing wage pressures as federal agencies chase low-price bids, but not all companies are willing to let their workers’ pay slip.

Staci Redmon, president and CEO of Springfield-based Strategies and Management Services Inc., said she steers clear of anything that reeks of best-value “lowest priced, technically acceptable” (LPTA) work when she’s deciding whether or not to bid on a contract. Rather, she tries to ensure that her workers are getting an appropriate wage.

“If we’re competing on price alone we know that the clients who are price shopping will always leave for the company that undercuts us,” said Redmon. “We have to pay what is a normal salary for someone that is performing this kind of work regardless of what it is because if you don’t pay it then you have attrition.”  Read More ….


How do you decide which contract opportunities to pursue – and what contract pressures your business can withstand?  Contact your nearest PTAC to discuss the government contracting strategy that makes the most sense for YOUR business!

 For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.