C-5 Quick Comparison of Best Value Basics
The FAR on Tradeoff vs LPTA Source Selection Processes
| FAR 15.101-1 Tradeoff Process | FAR 15.101-2 LPTA Process | ||
| Permits tradeoffs among cost or price and non-cost factors and allows the government to accept other than the lowest price proposal. | Does not permit tradeoff among cost or price and non-cost factors. | ||
| Used in competitive negotiated contracting. | Used in competitive negotiated contracting. | ||
| Select the most advantageous offer. | Select the lowest price proposal that meets/exceeds minimum requirements. | ||
| Evaluate and compare factors in addition to cost or price. | |||
| Proposals may be ranked. | No ranking of proposals. | ||
| Exchanges may occur. | Exchanges may occur. | ||
| IF | THEN | IF | THEN |
| - Generally considered complex items or services - Less definitive - Developmental or developmental work is required - Non-price factors play a dominant role in the source selection decision | Use the Tradeoff Process | - Commercial/non-complex items or services - Clear and well-defined requirements - Stable requirements - Items or services are readily and consistently available in the marketplace - Risk of unsuccessful performance is minimal - There is neither value, need or willingness to pay for higher performance - Cost/price plays a dominant role in the source selection decision | Consider using the LPTA Process |