FAR Part 7 Flashcards
Acquistion Planning
FAR Part 7
Acquisition Planning
Acquisition Plans
Planning for the Purchase of Supplies in Economic Quantities
Contractor Versus Government Performance
Equipment Lease or Purchase
Inherently Governmental Functions
Acquisition planning means
the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost.
It includes developing the overall strategy for managing the acquisition.
Acquisition Plans
FAR 7.102(b) … The purpose
of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner.
Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements.
Acquisition Plans
7.104 General procedures.
FAR7.104 (a) Acquisition planning should begin
as soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary.
In developing the plan, the planner shall form a team consisting of all those who will be responsible for significant aspects of the acquisition, such as contracting, small business, fiscal, legal, and technical personnel.
The planner should review previous plans for similar acquisitions and discuss them with the key personnel involved in those acquisitions.
At key dates specified in the plan or whenever significant changes occur, and no less often than annually, the planner shall review the plan and, if appropriate, revise it.
Acquisition Plans
7.102 Policy
FAR 7.102 (a) Agencies shall perform acquisition planning and conduct market
research (see part 10) for all acquisitions in order to promote and provide for
1) Acquisition of commercial products or commercial services, or to the extent that commercial products suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable ( 10 U.S.C. 3453 and 41 U.S.C. 3307); and
2) Selection of appropriate contract type in accordance with part 16; and
3)Appropriate consideration of the use of pre-existing contracts, including interagency and intra-
agency contracts, to fulfill the requirement, before awarding new contracts. (See 8.002 through 8.004 and subpart 17.5).
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Statement of need
Introduce the plan by a brief statement of need.
Summarize the technical and contractual history of the acquisition.
Discuss feasible acquisition alternatives, the impact of prior acquisitions, and any related in-house effort.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Applicable conditions
State significant conditions affecting the acquisition.
Requirements for compatibility with existing or future systems or programs.
Any known cost, schedule, and capability or performance constraints.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Cost
Established cost goals and supporting rationale.
Discuss related cost concepts, including:
Life-cycle cost
Design-to-cost
Application of should-cost analysis
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Capability or performance
Specify required capabilities or performance characteristics of the supplies or
services being acquired.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Delivery or performance-period requirements
Describe the basis for establishing delivery or performance-period requirements.
Provide reasons for any urgency.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Trade-Offs
Discuss expected consequences of trade-offs among cost, capability, performance,
and schedule goals.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Risks
Discuss technical, cost, and schedule risks and efforts to reduce them.
Effects of concurrency of development and production on cost and schedule risks.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Acquisition streamlining
Encourage industry participation.
Select and tailor only necessary and cost-effective requirements.
State timeframe for identifying mandatory specifications and standards.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Sources
Indicate prospective sources of supplies or services.
Consider required sources and databases.
Include consideration of small business concerns.
Address impact of consolidation or bundling on small businesses.
Market research impact on the plan
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Competition
Describe how competition will be sought, promoted, and sustained.
Authority and basis for not providing full and open competition.
Competition for major components or subsystems, spares, and repair parts.
Effective subcontract competition.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Contract type selection
Rationale for contract type selection.
Document acquisition plan with findings supporting the contract type selection.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Source-section procedures
Discuss source selection procedures and evaluation factors.
Consideration of pre-award IBR in source selection decision.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.
Acquisition considerations
Use of multiyear contracting, options, special clauses, sealed bidding or negotiation.
Capital planning and investment control requirements for information technology acquisitions.
Compliance with ICT accessibility standards.
Strategy to transition to firm-fixed-price contracts.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Budgeting and funding
Include budget estimates and schedule for obtaining funds.
Product or service descriptions
Explain choice of product or service description types.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Priorities, allocations, and allotments
Specify method for obtaining and using priorities and allocations.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Contractor versus Government performance
Consideration given to OMB Circular No. A-76.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Inherently governmental functions
Consideration given to subpart 7.5.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Management information requirements
Management system to monitor contractor’s effort.
Use of Earned Value Management System.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Make or Buy
Consideration given to make-or-buy programs.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Test and evaluation
Describe test program for the contractor and the Government.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Logistics considerations
Contractor or agency support, reliability, maintainability, quality assurance, data requirements, and standardization concepts.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Government-furnished property
Indicate any Government property to be furnished to contractors.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Government-furnished information
Discuss any Government information to be provided to prospective offerors and contractors.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Environmental and energy conservation objectives
Environmental and energy conservation objectives associated with the acquisition.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Security considerations
Adequate security for classified matters and information technology acquisitions.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Contract administration
How the contract will be administered.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Other considerations
Standardization concepts, industrial readiness program, Defense Production Act, OSHA, SAFETY Act, foreign sales implications, special requirements for designated operational areas, and other relevant matters.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Milestones for the acquisition cycle
Acquisition plan approval, statement of work, specifications, data requirements, acquisition-package preparation, purchase request, justification and approval for other than full and open competition, issuance of synopsis, solicitation, evaluation of proposals, negotiations, contract preparation, review, clearance, and contract award.
7.105 Contents of written acquisition plans.
In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing
Identification of participants in acquisition plan preparation
List individuals who participated in preparing the acquisition plan with contact
information.
FAR 2.101 Bundling means:
a subset of consolidation that combines two or more requirements for supplies or services, previously provided or performed under separate smaller contracts into a solicitation for a single contract, a multiple-award contract, or a task or delivery order that is likely to be unsuitable for award to a small business concern…
7.107-3 (a) Bundling may provide substantial benefits to the Government.
However, because of the potential impact on small business participation, before conducting an acquisition strategy that involves bundling, the agency shall make a written determination that the bundling is necessary and justified in accordance with 15 U.S.C. 644(e).
A bundled requirement is considered necessary and justified if the agency would obtain measurably substantial benefits as compared to meeting its agency’s requirements through separate smaller contracts or orders.
7.202 (a) Agencies are required by 10 U.S.C. 3242 and 41 U.S.C.3310 to procure supplies in
such quantity as-
(1) Will result in the total cost and unit cost most advantageous to the Government, where practicable; and
(2) Does not exceed the quantity reasonably expected to be required by the agency.
7.401 Acquisition considerations.
7.401 (a) (1)Agencies shall acquire equipment using the method of acquisition
most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors in accordance with this subpart and agency procedures.
(2) The methods of acquisition to be compared in the analysis shall include, at a minimum—
(i)Purchase;
(ii)Short-term rental or lease;
(iii)Long-term rental or lease;
(iv)Interagency acquisition ;and
(v)Agency acquisition agreements, if applicable, with a State or local government.
Equipment Lease or Purchase
(b) (1)The factors to be compared in the analysis shall include, at a minimum
(i) Estimated length of the period the equipment is to be used and the extent of use within that
period;
(ii) Financial and operating advantages of alternative types and makes of equipment;
(iii) Cumulative rent, lease, or other periodic payments, however described, for the estimated period of use;
(iv) Net purchase price;
(v) Transportation, installation, and storage costs;
(vi) Maintenance, repair, and other service costs; and
(vii) Potential obsolescence of the equipment because of imminent technological improvements.
Subpart 7.3 - Contractor Versus Government Performance
7.301 Definitions.
Definitions of “inherently governmental activity” and other terms applicable to this subpart are set forth at Attachment D of the Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (the Circular).
An inherently governmental activity is described
as one that is so intimately related to the public interest that it mandates performance by government personnel.
These activities require the exercise of substantial discretion in applying government authority and/or making decisions for the government.
Examples include activities that involve binding the government to take or not take some action by contract, policy, regulation, authorization, order, or otherwise; activities that significantly affect the life, liberty, or property of private persons; and activities that exert ultimate control over the acquisition, use, or disposition of government property.
Contractor Versus Government Performance
7.302 Policy.
7.302 (a) The Circular provides that it is the policy of the Government to-
(1) Perform inherently governmental activities with Government personnel; and
(2) Subject commercial activities to the forces of competition.
(b) As provided in the Circular, agencies shall
(1) Not use contractors to perform inherently governmental activities…
Acquisition planning
The process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost
Includes the overall strategy for managing the acquisition
The purpose of acquisition planning is to ensure that the government meets its needs in the most effective,
economical, and timely manner.
Acquisition planning should begin
as soon as the
agency need is identified, preferably well in advance
of the fiscal year in which contract award or order placement is necessary.
The acquisition team
consists of al personnel who are responsible for significant aspects of the acquisition.
The acquisition planner
is the person or office designated as responsible for developing and
maintaining the acquisition plan.
When ful and open competition is not required,
acquisition planning promotes and provides for competition to be obtained to the maximum extent
practicable.
Acquisition planning promotes and provides for:
Acquisition of commercial or nondevelopmental items to the maximum extent practicable
Full and open competition when required, or the
maximum amount of competition practicable
Selection of the appropriate contract type
Appropriate consideration of
the use of preexisting contracts before awarding
new contracts
Agencies are required to procure supplies in the quantities that
will result ni the total cost and unit cost that are most advantageous to the government.
Agencies are required to procure supplies in the quantities that wil result
in the total cost and unit cost that are most advantageous to the government.
Acquisitions of supplies shall not exceed the quantity
reasonably expected to be required by
the agency.
Acquisition Plan Contents
Background and objectives
Defining the government’s needs,
performance requirements, and capabilities
Describing the conditions
Identifying trade-offs and risks * Estimating costs
Acquisition Plan Contents
Plan of action
Competition, sources, source selection procedures
Contract type, bundling, funding
Make or buy, inherently governmental considerations
Logistical considerations, testing requirements, government property
Milestone / performance schedules * Participants and responsibilities
Bundling
Consolidating two or more requirements for supplies or services, previously
provided or performed under separate smaller contracts, into a solicitation for a single contract
Bundling may provide substantial benefits to the
government, but, due to the potential impact on small business, market research should be conducted to
determine whether bundling is justified.
CFCM ONLNIE PREPARATORY COURSE
Inherently Governmental Activity
It is the policy of the government to:
Perform inherently governmental activities with government
personnel, and
Subject commercial activities to the forces of competition.
Inherently Governmental Activity
Inherently governmental function
As a matter of policy, a function that is so intimately related to the public interest as to mandate performance by government employees
An inherently governmental function includes activities
that require either the exercise of discretion in applying government authority, or the making of value judgments in making decisions for the government.
Inherently governmental functions do not include
functions that are primarily ministerial and internal in
nature, such as security, mail, cafeteria operations, housekeeping and maintenance, or other routine services.
Inherently governmental functions do not normally
include
gathering information for or providing advice, opinions, recommendations, or ideas to government officials.
InherentlyGovernmentalActivity
It is the policy of the government to
Perform inherently governmental activities with government personnel
Subject commercial activities to the forces of competition
Agencies shall
Not use contractors to perform inherently governmental activities
Conduct public-private competitions
Give appropriate consideration relative to cost when making
performance decisions between agency and contractor performance in public-private competitions
Lease of equipment is generally more appropriate than
purchasing,
except in cases where purchase is clearly advantageous to the government.
Lease of equipment should be done, when possible,
with an option to purchase the equipment. The contract shall state the
purchase price or the formula by which the purchase price will be determined,.
Considerations When Determining Whethert oLeaseo rBuyEquipment
Estimated length of the period the equipment is to be used, and the extent of use within that period
Financial and operating advantages of alternative types and makes of equipment
Cumulative rental payments for the estimated period of use
Net purchase price
Transportation and installation costs
Maintenance and other service costs
Potential obsolescence of the equipment because of imminent technological improvements
7.105 acquisition plan objections
statement of need
applicable conditions
cost
Capability or performance
POP
Trade offs
risks
aquistion streamlining
Plan of Action
Sources,
competition
contract type selection
source selection
procedures
acquitision
considerations
budgeting and funding
product or service
descriptions
priorties allocations and
allotments
contractors vs government performance
inherently governmental functions
management information requirements
make or buy
test and evaluation
logistics considerations
government furnished property
environmental and energy
security considerations
contract administration
