Question

In: Operations Management

Acquisition planning is mandatory when procuring goods and services for the federal government. At what point...

Acquisition planning is mandatory when procuring goods and services for the federal government. At what point in the acquisition process should acquisition planning begin? What information should be included in a written acquisition plan? At what point should the planner coordinate the acquisition plan or strategy with the small business specialist?

Solutions

Expert Solution

Acquisition planning should begin as soon as the federal agency identifies a need for procuring a particular product or service. The need is preferably identified well in advance than the fiscal year in which contract award is to be made.

Information that should be included in written acquisition plan are:

  • Acquisition background and objective
    • Statement of Need - Why the product or service is required?
    • Product or Service Description - Product or service specifications and how they would satisfy need
    • Applicable Conditions - Conditions affecting acquisition such as requirements of compatibility with existing infrastructure
    • Cost - What is the budget for acquiring product or service?
    • Capability or Performance - Performance standards that need to be met
    • Delivery of Performance-Period Requirements - Period in which product or service must be delivered
    • Trade-offs - Trade-off between cost, quality and time
    • Risks - Risks associated with change or new product/service
    • Acquisition Streamlining - Procedures to acquire product or service, bids, auctions etc.
  • Plan of action - Sources, Competition, contract type selection, make or buy selection etc. Some of the elements in plan of action are described below.
    • Source Selection Procedures - Parameters for shortlisting vendors and selecting the vendor
    • Contract Considerations - Terms and conditions necessary for a successful procurement
    • Budget and Funding - From where we are going to received funding or grant for procurement
  • Other considerations as applicable- Standardization, industrial readiness program, public acts such as Defense Production and Occupational Safety and Health Act;

"The planner shall coordinate the acquisition plan or strategy with the cognizant small business specialist when the strategy contemplates an acquisition meeting the thresholds for substantial bundling unless the contract or a task order or delivery order is entirely reserved or set-aside for small business."

(Refer FAR Part 7 - Acquistion planning, Section - 7.107)


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