The government’s increasing focus on price has been “incredibly disruptive” in the IT services market, said Timothy Wickham, managing director at the consulting firm Avascent.
The Defense Department opted for “lowest price technically acceptable” bids in about 36 percent of its contract awards over $1 million in fiscal year 2013, up from 26 percent in 2009. And the trend is likely to grow as the government comes under greater pressures to cut costs, Wickham and other experts predict.
The shift to LPTA rewards lean companies even when they may not have the technical and scale advantage of other contractors, Wickham said.
“LPTA is a…
View original post 680 more words