Better Buying Power (BBP) 2.0: A Sea Change on FFP/FPIF Contracts or the Rebirth of Best Value?

By Charlie Craw

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.

1. Employ appropriate contract types

2. Better define value in “best value” competitions

3. 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.