What are some reasons past performance is not an appropriate evaluation factor for a lowest price technically acceptable acquisition?
There is nothing that says that past performance is not an appropriate evaluation factor for an LPTA acquisition. In fact, it can be a VERY appropriate factor. The FAR is saying that, for certain goods or services, the risk of awarding to a contractor who may not have a stellar past performance record is relatively low, given the nature of the item being acquired. In light of this perceived low risk, it may not be worth the time and effort to evaluate past performance information.
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For example, an organization may need to order new modular furniture to furnish a new building. The solicitation is issued with plenty of lead time to ensure, beyond any reasonable doubt, that any supplier who wins the award will deliver the furniture on time. The furniture itself is standard furniture with simple specs. Under this scenario, the effort associated with evaluating past performance may not be worth the potential benefit of doing so for this relatively "low-risk" procurement.