12-13-2012, 10:21 AM
In the last few months the use of "lowest price technically acceptable" evaluation method has really accelerated and is being used for IT work more than I've ever seen in the last 5 years and several hundred proposals. LPTA means they take the 8 proposals received, stack them from lowest price to highest and then start at the top, reviewing until they find one "technically acceptable". Not superior, just...acceptable. This could mean 7 proposals never even get looked at. Be low, or risk not even having a chance.
This is putting downward pressure on the salaries of anyone not considered key. Incumbents are bidding their folks at 5-10% less than current salary, winning, and keeping the people. Those who refuse the pay cut are greened (replaced with a newbie). Things are being bid at razor thin margins and even those who took the cut and stayed, may be on the 2 year get well plan of further greening to control salary creep and protect margins. That doesn't mean they won't find other work, but it's like sitting on a fence with 30 other folks watching them get picked off randomly and wondering every day if it's going to be you.
I can guarantee the government employees they are working right next to, doing the same job, did not take pay cuts to stay on the project.
I don't know how much continued pressure there will be to use the LPTA evaluation criteria in the future, but if the trend continues, much of government IT work will be a commodity, and the salaries of the average Joe with a few certs trying to jump on a government contract may face downward pressure. Or at the very least, not escalate as they have in the past. There are of course other factors that could influence this, but it's what we're seeing now.
Higher end development seems to be insulated from this so far, but even on those proposals, support personnel (non-key) are having salaries pressured. We just worked a recompete where we have 17 FTEs that have been on the project for years, out of that 5 were considered necessary to perform, 12 were either on the low side salary-wise already or slated for replacement. Of the 5, two were named in the proposal, even putting pressure on the other 3.
This is in contrast to a best value criteria where you could be more expensive, and let the government know that all the people they like will remain on the project. Best value gave the selection committee an avenue for paying more to keep incumbents. In an LPTA contest, you don't get to tell that story unless you are low, low, low.
The government is doing everything it can to make it a race to the bottom...at least for the contractors.
Goody, too bad you don't want to combine your sales experience with IT, those peeps are making bank! And most don't know shit about IT (like me), and it's OK because neither does their customer POC. That's why they bring Evans and Geralds with them to follow-up meetings as "sales engineers".
This is putting downward pressure on the salaries of anyone not considered key. Incumbents are bidding their folks at 5-10% less than current salary, winning, and keeping the people. Those who refuse the pay cut are greened (replaced with a newbie). Things are being bid at razor thin margins and even those who took the cut and stayed, may be on the 2 year get well plan of further greening to control salary creep and protect margins. That doesn't mean they won't find other work, but it's like sitting on a fence with 30 other folks watching them get picked off randomly and wondering every day if it's going to be you.
I can guarantee the government employees they are working right next to, doing the same job, did not take pay cuts to stay on the project.
I don't know how much continued pressure there will be to use the LPTA evaluation criteria in the future, but if the trend continues, much of government IT work will be a commodity, and the salaries of the average Joe with a few certs trying to jump on a government contract may face downward pressure. Or at the very least, not escalate as they have in the past. There are of course other factors that could influence this, but it's what we're seeing now.
Higher end development seems to be insulated from this so far, but even on those proposals, support personnel (non-key) are having salaries pressured. We just worked a recompete where we have 17 FTEs that have been on the project for years, out of that 5 were considered necessary to perform, 12 were either on the low side salary-wise already or slated for replacement. Of the 5, two were named in the proposal, even putting pressure on the other 3.
This is in contrast to a best value criteria where you could be more expensive, and let the government know that all the people they like will remain on the project. Best value gave the selection committee an avenue for paying more to keep incumbents. In an LPTA contest, you don't get to tell that story unless you are low, low, low.
The government is doing everything it can to make it a race to the bottom...at least for the contractors.
Goody, too bad you don't want to combine your sales experience with IT, those peeps are making bank! And most don't know shit about IT (like me), and it's OK because neither does their customer POC. That's why they bring Evans and Geralds with them to follow-up meetings as "sales engineers".
Current: 1985 LS1 Corvette | 2014 328i Wagon F31
Former: 2010 Ford Edge | 1999 Integra GS
I have a little bit of a rub near lock but if you are turned to lock on a track there are other problems already...
Former: 2010 Ford Edge | 1999 Integra GS
I have a little bit of a rub near lock but if you are turned to lock on a track there are other problems already...