FAR Part 7 Flashcards
Acquisition Planning
Overview and Importance of Acquisition Planning
Definition and Scope
Prescribes policies and procedures for developing acquisition plans. (FAR 7.000)
Ensures effective, economical, and timely fulfillment of Government needs. (FAR 7.000)
Overview and Importance of Acquisition Planning
Key Objectives
Promotes full and open competition. (FAR 7.102(b))
Ensures integration of efforts by all personnel responsible for significant aspects of the acquisition. (FAR 7.102(b))
Acquisition Planning Policies and Requirements
Market Research
Requirement to conduct market research to promote competition. (FAR 7.102(a))
Encourages acquisition of commercial products and services. (FAR 7.102(a))
Acquisition Planning Policies and Requirements
Coordination and Concurrence
Acquisition planning must be coordinated with the contracting officer. (FAR 7.104(c))
Plans involving other than full and open competition must be coordinated with the advocate for competition. (FAR 7.104(c))
Acquisition Planning 7.1 Acquisition Plans
Contents of Written Acquisition Plans
Key Components
Sources of supplies and services. (FAR 7.105(b)(1))
Competitive procedures and how competition will be promoted and sustained. (FAR 7.105(b)(2))
Acquisition Planning 7.1 Acquisition Plans
Contents of Written Acquisition Plans
Contact Type Selection
Discussion on selecting appropriate contract types to foster competition. (FAR 7.105(b)(3))
Acquisition Planning 7.1 Acquisition Plans
Additional Requirements
Risk Management
Discusses risks and efforts to reduce them, which can impact competition. (FAR 7.105(a)(7))
Acquisition Planning 7.1 Acquisition Plans
Additional Requirements
Milestones and approvals
Identification of key acquisition milestones to ensure competition is maintained. (FAR 7.105(b)(21))
7.2 Planning for the Purchase of Supplies in Economic Quantities
Economic Quantities and Competition
Policy Overview
Encourages procurement of supplies in quantities that are most advantageous to the Government. (FAR 7.202(a))
Promotes competition by inviting offerors to provide opinions on purchase quantities. (FAR 7.202(b))
7.2 Planning for the Purchase of Supplies in Economic Quantities
Solicitation Provisions
Provision inviting offerors to suggest more economically advantageous quantities. (FAR 7.203)
7.2 Planning for the Purchase of Supplies in Economic Quantities
Contracting Officers Responsibilities
Transmitting offeror responses to appropriate inventory management activities to facilitate competition. (FAR 7.204)
7.4 Equipment Lease or Purchase
Acquisition Methods
Comparison of Methods
Analysis of comparative costs for purchase, lease, or rent to determine the most advantageous method. (FAR 7.401(a))
Promotes competition by considering different acquisition methods. (FAR 7.401(a))
7.4 Equipment Lease or Purchase
Factors to Consider
Decision Factors
Consideration of various factors, including cost,
use period, and
technological advancements,
to encourage competition among suppliers. (FAR 7.401(b))
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
all 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.
The Reasons for Acquisition Planning
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
Purchase of Supplies In Economic Quantity
Agencies are required to procure supplies in the quantities that wil result ni 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
Acquisition Plan Contents
Bundiling
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.
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 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.
Inherently Governmental Activity
It is the policy of the government to
Perform inherently governmental activities with government personnel
Subject commercial activities to the forces of competition
Inherently Governmental Activity
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
Considerations When Determining Whether to Lease or Buy Equipment
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 Whether to Lease or Buy Equipment
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
Acquisition plans is defined as 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.
Acquisition planning should begin as soon as the agency need is identified.
The acquisition team should consist of all those who will be responsible for significant aspects of the acquisition, such as
as contracting, fiscal, legal, and technical personnel.
Early in the planning process, the planner should consult with requirements and logistics personnel who determine type, quality, quantity, and delivery requirements
If the plan proposes using other than full and open competition when awarding a contract, the plan shall
also be coordinated with the cognizant competition advocate.
Agencies shall perform acquisition planning and conduct market research for all acquisitions in order to promote and provide for:
- Acquisition of commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable (10 U.S.C. 2377 and 41 U.S.C.
3307. - Full and open competition (see part 6) or, when full and open competition is not required in accordance with part 6, to obtain competition to the maximum extent practicable, with due regard to the nature of the supplies or services to be acquired (10 U.S.C. 2305(a)(1)(A) and 41 U.S.C.
3306(a)(1)); - Selection of appropriate contract type in accordance with part 16; and
- Appropriate consideration of the use of preexisting contracts, including interagency andintra-agency contracts, to fulfill the requirement, before awarding new contracts.
To facilitate attainment of the acquisition objectives, the plan must identify those milestones
at which decisions should be made.
The plan must address all technical, business, management, and other significant considerations that will control the acquisition.
The specific content of plans will vary, depending on the nature, circumstances, and stage of the acquisition
Acquisition plans for service contracts or orders must
describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those methods.
Written acquisition plans generally will have two sections:
a. Acquisition Background and Objectives (FAR 7.105(a)): This portion of the plan provides information on the nature, context, and background of the
- Statement of need: A brief description of the requirement.
- Applicable conditions: Discuss any external constraints, in addition to requirements for computability with existing systems.
- Cost: This should address cost goals for the acquisition and may include the following types of analysis: life-cycle cost, design-to-cost, or should-cost.
- Capability or performance: This should address the required capabilities or performance characteristics and how they relate to the Statement of Need.
- Delivery or performance-period
requirements: This should discuss delivery requirements, including the rationale forany urgency that may result in a noncompetitive acquisition. - Trade-offs: Discuss any potential cost, capability performance, and schedule goal trade-offs.
- Risks: Discuss any cost, technical, and schedule risks, along with planned efforts to reduce those risks.
- Acquisition streamlining: Discuss the use of presolicitation industry outreach efforts and tailoring of requirements vcxz
Written acquisition plans generally will have two sections:
b. Plan of Action (FAR 7.105(b)): This portion of the plan addresses the proposed approach for conducting the acquisition. The major elements to address include:
- Sources: Discuss potential sources for the need, including consideration of mandatory sources of supply, small business concerns, and interagency contracting vehicles.
- Competition: Describe how competition will be sought, promoted, and sustained throughout the course of the acquisition or, if the acquisition will be noncompetitive, discuss which authority from FAR 6.302 applies and why.
- Contract type selection: Explain the selection of contract type, including any additional documentation required for use of other than a firm-fixed-price contract.
- Source-selection procedures: Discuss the source-selection procedures for the acquisition, including the timing for submission and evaluation of proposals, and the relationship of evaluation factors to the attainment of the acquisition objectives.
- Acquisition considerations:
For each contract contemplated, discuss use of multiyear contracting, options, or other special contracting methods (see part 17);any special clauses, special solicitation provisions, or FAR deviations required (see subpart 1.4); whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase (see subpart 7.4) and why; and any other contracting considerations.
Provide rationale if a performance-based acquisition will not be used or if a performance-based acquisition for services is contemplated on other than a firm-fixed-price basis. - Budgeting and funding: Include budget estimates, explain how they were derived, and discuss the schedule for obtaining adequate funds at the time they are required (see subpart 32.7).
- Product or service descriptions: Explain the choice of product or service description types (including performance-based acquisition descriptions) to be used in the acquisition.
- Priorities, allocations, and allotments:
When urgency of the requirement dictates a particularly short delivery or performance schedule, certain priorities may apply. If so, specify the method for obtaining and using priorities, allocations, and allotments, and the reasons for them (see subpart 11.6). - Contractor versus government performance:
Address the consideration given to OMB
Circular No. A-76 (see subpart 7.3). - Inherently
governmental functions:
Address the consideration given to subpart 7.5. - Management information requirements:
Discuss, as appropriate, what management system will be used by the government to monitor the contractor’s effort. If an Earned Value Management System (EVMS) is to be used, discuss the methodology the government will employ to analyze and use the earnedvalue data to assess and monitor contract performance. In addition, discuss how the offeror’s/contractor’s EVMS will be verified for compliance with the American National Standards Institute/ Electronics Industries Alliance (ANSI/EIA) Standard-748, “Earned Value Management Systems,” and the timing and conduct of integrated baseline reviews (whether prior to or post-award). (See 34.202.) - Make or buy: Discuss any consideration given to make-or-buy programs (see subpart 15.407-2).
- Test and evaluation: To the extent applicable, describe the test program of the contractor and the government.
Describe the test program for each major phase of a major system acquisition.
If concurrency is planned, discuss the extent of testing to be accomplished before production release. - Logistics
considerations: Logistics
consideration should discuss
the
assumptions made in determining contractor or agency support, both initially and over the life of the acquisition (see subpart 7.3); the reliability, maintainability, and quality assurance requirements, including any planned use of warranties (see part 46); the requirements for contractor data (including repurchase data) and data rights, their estimated cost, and the use to be made of the data (see part 27); and standardization concepts, including the necessity to designate, in accordance with agency procedures, technical equipment as “standard” so that future purchases of the equipment can be made from the same manufacturing source. - Government-furnished
property:
Indicate any government property to be furnished to contractors, and discuss
any associated considerations, such as its availability or the schedule for its acquisition (see 45.102). - Government-furnished information:
Discuss any government information (such as manuals, drawings, and test data) to be provided to prospective offerors and contractors.
Indicate which information that requires additional controls to monitor access and distribution (e.g., technical specifications, maps, building designs, schedules, etc.), as determined by the agency, is to be posted via the enhanced controls of the GPE, refer to FAR 7.105(b)(16) for the current website. (see
5.102(a)). - Environmental and energy conservation objectives:
Discuss all applicable
environmental and energy conservation objectives
associated with the
acquisition (see
part 23),
the
applicability of an environmental assessment or environmental impact statement (see 40 CFR 1502), the proposed resolution of environmental issues, and any environmentally related requirements to be included in solicitations and contracts (see 11.002 and 11.303). - Security considerations: For acquisitions dealing with classified matters, discuss how adequate security will be established, maintained, and monitored (see subpart 4.4). For information technology acquisitions, discuss how agency information security requirements will be met.
For acquisitions requiring routine contractor physical access to a federally controlled facility and/or access to a federally controlled information system, discuss how agency requirements for personal identity verification of contractors will be met (see subpart
4.13). For acquisitions that may require federal contract information to reside in or transit through contractor information systems, discuss how that information will be safeguarded (see subpart 4.19). - Contract administration: Describe how the contract will be administered.
In contracts for services, include how inspection and acceptance corresponding to the work statement’s performance criteria will be enforced. - Other considerations.
Discuss,
as
applicable:
i. Standardization concept;
ii. The industrial readiness program;
iii. The Defense Production Act;
iv. The Occupational Safety and Health
Act;
v. Support Antiterrorism by Fostering Effective Technologies Act of 2002 (SAFETY Act) (see subpart 50.2);
vi. Foreign sales implications;
vii. Special requirements for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission; and
vili. Any other matters germane to the
plan not covered elsewhere. - Milestones for the acquisition cycle:
Address the major milestones outlined from approval of the acquisition plan through contract award. Add any additional steps as appropriate. - Identification of
participants in
acquisition
plan
preparation: List
the individuals who participated in preparing the acquisition plan, giving contact information for each.
Bundling may provide substantial benefits to the government. However, because of the potential impact on small business participation,
the head of the agency must conduct mar-ket research to determine whether bundling is necessary and justified.
Market research may indicate that bundling is necessary and justified if an agency or the government would derive measurably substantial benefits
Agencies are required by 10 U.S.C. 2384(a) and 41 U.S.C.
253(f) to procure supplies in such quantity as will result
in the total cost and unit cost most advantageous to the government, where practicable,
and will not exceed the quantity reasonably expected to be required by the agency.
Solicitations for supplies, where practicable, will include a provision soliciting recommendations on economic order quantities.
It is the policy of the government to perform inherently governmental activities with government personnel, and subject commercial activities to the forces of competition. An “inherently governmental function”
means, as a matter of policy, a function that is so intimately related to the public interest as to mandate performance by government employees.
‘The government shall not use contractors to perform inherently governmental activities.
Agencies must acquire equipment using the method of acquisition that is most advantageous to the government based on a case-by-case analysis of comparative costs and other factors. At a minimum, the following methods should be considered:
purchase,
short-term rental or lease,
long-term rental or lease,
and interagency acquisition and agency acquisition agreements, if applicable with state or local
Generally, the FAR gives preference to the purchase method if the equipment
will be used beyond the point in time when cumulative leasing costs exceed the purchase costs.
If a rental or lease is justified, the FAR gives preference to rental or lease with option to purchase;
the purchase price or formula must be included in the contract.
Generally, long-term leases should be avoided except in cases where they are most advantageous.
The FAR also outlines the minimum factors that agencies must analyze to determine the most
advantageous acquisition method.
At a minimum pending price adjustments to Federal Supply Schedule these must include
length of use, financial and operating advantages, cumulative rent, net purchase price, transportation, maintenance and repair,
and the potential for the equipment to become obsolete due to technological improvement.
The subpart also outlines additional factors that agencies must consider depending on the details of the equipment and planned usage, including availability, flexibilities around cancelling, extending, or swapping, warranties, requirements, and long-term utility considerations such as potential for future use by other agencies, trade-in or salvage, value and imputed interest.
The analysis of equipment acquisition methods and considerations is not required
when the president or agency has made an emergency determination as outlined in FAR
When requested by an agency, the General Services Administration (GSA) will assist in rent, lease, or
purchase decisions by providing information such as
pending price adjustments to Federal Supply Schedule (FSS) contracts, recent or imminent technological developments, new techniques, and industry or market trends.
Contracts shall not be used for the performance of inherently governmental functions. Agency decisions that determine whether a function is or is not an inherently governmental function may be
reviewed and modified by appropriate Office of Management and Budget
A representative list of inherently governmental functions is included within this subpart of the
FAR. While the list is not exhaustive, it provides guidance into areas of work that are considered inherently governmental. Examples of this would include
any criminal investigations or any prosecutions or adjudicatory duties, with the exception of alternative dispute resolution.
The command of any military forces is also inherently governmental, as are the conductforeign diplomacy or development of foreign policy or the performance of intelligence or counterintelligence.
Issues relating to the federal workforce are also included in governmental functions, and that includes, hiring, job description development, and performance standards.
Contractors are generally precluded from conducting any federal acquisition work and are not permitted to develop agency budget priorities, handle treasury funds (including collecting controlling or disbursing funds), distribute government property,
or make any determination relating to security clearances or eligibility for federal programs
Contractors may perform a wide range of support to activities that are inherently governmental, but the activities
must at all times be under the direct supervision and control of government
