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FCW : May 15, 2013
24 May 15, 2013 FCW.COM As agencies deal with budget cuts, the government is miss- ing an opportunity for innovation and leadership by estab- lishing "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 de ned, low-risk requirements --- think facilities maintenance. But "techni- cally acceptable" implies minimum performance expecta- tions 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" 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 scal pressures intensify, it is essential that we reach new levels of performance and ef ciency 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). What is "functionally better"? It means improved or improving levels of performance at a comparatively lower cost across the enterprise. The exact de nition will vary based on a speci c organization s service or mission. But the acquisition of functionally better solutions and services provides the means to continually lower overall costs and hit higher levels of performance. Government acquisitions that use an LPFB approach would challenge industry to offer solutions that exceed the performance requirements for "technically acceptable" and still come in at the lowest effective cost. FirstPer son Moving beyond 'technically acceptable' LPTA encourages government and industry to settle for "good enough" to hit a price point. IAC Chair Dale Luddeke says scal pressures dictate that agencies get more from their acquisitions by shifting their focus from price to excellence
April 30, 2013
May 30, 2013