As agencies deal with budget cuts, the government is missing an opportunity for innovation and leadership by establishing "lowest price, technically acceptable" as the default approach to the acquisition of IT assets.

 

The LPTA approach has its place and can work well for commoditized services with clearly defined, low-risk requirements — think facilities maintenance. But "technically acceptable" implies minimum performance expectations based on what we know has worked in the past and does little to keep up with new demands or evolving threats. In other words, LPTA encourages government and industry to settle for "good enough" just to hit a price point.

 

And when it comes to the acquisition of new technology solutions and services, the LPTA approach offers short-term savings at the expense of long-term mission effectiveness. It hurts the business of government because technically acceptable does not anticipate the needs and threats of tomorrow — or provide for the technology and systems to address them. As the fiscal pressures intensify, it is essential that we reach new levels of performance and efficiency for the short and long term alike.

 

The time is right to get more from our acquisition approach by changing from "lowest price, technically acceptable" to "lowest price, functionally better" (LPFB). Read Full Article.