Thursday, June 12, 2014

Why LPTA Makes Sense for government



You want to buy a widget. Or you want someone to run your widget farm.
You can’t just go pick a widget vendor, or a widget services provider. Rules require that you ask for anyone who is in the widget business to “Make me an offer.”
And so you get five, or ten, or fifty widget proposals. Each promises to give you the best widget, with the best possible widget results. How can you tell them apart?

The IT marketplace is large but finite. All vendors operate in the same technology space – same platforms, same software, same operating systems.  Most are within the same labor market, paying the same wages and salaries to attract and retain staff. So any IT solution pretty much looks the same. Procurement officials can eliminate offers that are obviously incompetent, but mostly the suppliers look pretty vanilla from the outside. Some bidders use proposal templates from third-party proposal support companies, so the proposals literally look identical. The main differences are in how good the proposal writing team is at their job…and they won’t be involved in actually delivering the services. Do you believe the proposal that uses the most superlatives?

Or is more effective to just pare down to those who appear competent and pick the lowest price? After all, saying you have the best management approach doesn’t make it so.
No one ever got in trouble for picking lowest price.





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