Last month, OSD (AT&L) updated the original Better Buying Power (BBP) guidance in a memo titled, Better Buying Power 2.0: Continuing the Pursuit for Greater Efficiency and Productivity in Defense Spending. Three initiatives under the focus area, “Incentivize Productivity & Innovation in Industry and Government” are particularly interesting.
- Employ appropriate contract types
- Better define value in “best value” competitions
- When low price technically acceptable (LPTA) is used, define technically acceptable to ensure needed quality
Could these initiatives signal the beginning of a sea change inside the department on firm fixed price (FFP)/fixed price incentive fee (FPIF) contract types and perhaps the re-birth of best value source selections? The cautionary paragraph on how and how not to use LPTA is particularly encouraging.
Read the full November 20, 2012 memo here.