DoD Source Selection Procedures (March 31, 2016)

VATEP is similar in some respects to the old dollars-per-point scheme that was used for a while in the 1970s and 1980s. 

VATEP could be suitable for acquisition of commercial item products with modular features and functions. For example, I am looking to buy a handheld GPS navigation device for use in geocaching. I have learned that they range in price from less than $100 to $1,000 or more, depending on features and functions. If I were conducting a government acquisition of such devices, I could establish a requirement based on certain essential ("minimum") features and functions, and then set a price on what I'd pay for each of several non-mandatory (optional) features and functions and then conduct objective tradeoffs on that basis. I think that might work just fine. It might also be suitable for some standardized commercial services.

VATEP is ill-suited for the acquisition of most noncommercial services.