FAR Part 7

Question 1

Overview and Importance of Acquisition Planning

Definition and Scope

Answer 1

Prescribes policies and procedures for developing acquisition plans. (FAR 7.000)

Ensures effective, economical, and timely fulfillment of Government needs. (FAR 7.000)

Question 2

Overview and Importance of Acquisition Planning

Key Objectives

Answer 2

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))

Question 3

Acquisition Planning Policies and Requirements

Market Research

Answer 3

Requirement to conduct market research to promote competition. (FAR 7.102(a))

Encourages acquisition of commercial products and services. (FAR 7.102(a))

Question 4

Acquisition Planning Policies and Requirements

Coordination and Concurrence

Answer 4

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))

Question 5

Acquisition Planning 7.1 Acquisition Plans

Contents of Written Acquisition Plans

Key Components

Answer 5

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))

Question 6

Acquisition Planning 7.1 Acquisition Plans

Contents of Written Acquisition Plans

Contact Type Selection

Answer 6

Discussion on selecting appropriate contract types to foster competition. (FAR 7.105(b)(3))

Question 7

Acquisition Planning 7.1 Acquisition Plans

Additional Requirements

Risk Management

Answer 7

Discusses risks and efforts to reduce them, which can impact competition. (FAR 7.105(a)(7))

Question 8

Acquisition Planning 7.1 Acquisition Plans

Additional Requirements

Milestones and approvals

Answer 8

Identification of key acquisition milestones to ensure competition is maintained. (FAR 7.105(b)(21))

Question 9

7.2 Planning for the Purchase of Supplies in Economic Quantities

Economic Quantities and Competition

Policy Overview

Answer 9

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))

Question 10

7.2 Planning for the Purchase of Supplies in Economic Quantities

Solicitation Provisions

Answer 10

Provision inviting offerors to suggest more economically advantageous quantities. (FAR 7.203)

Question 11

7.2 Planning for the Purchase of Supplies in Economic Quantities

Contracting Officers Responsibilities

Answer 11

Transmitting offeror responses to appropriate inventory management activities to facilitate competition. (FAR 7.204)

Question 12

7.4 Equipment Lease or Purchase

Acquisition Methods

Comparison of Methods

Answer 12

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))

Question 13

7.4 Equipment Lease or Purchase

Factors to Consider

Decision Factors

Answer 13

Consideration of various factors, including cost,

use period, and

technological advancements,

to encourage competition among suppliers. (FAR 7.401(b))

Question 14

Acquisition planning

Answer 14

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.

Question 15

Acquisition planning should begin

Answer 15

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.

Question 16

The acquisition team consists of

Answer 16

all personnel who are responsible for significant aspects of the acquisition.

Question 17

The acquisition planner is

Answer 17

the person or office designated as responsible for developing and
maintaining the acquisition plan

Question 18

When ful and open competition is not required, acquisition planning

Answer 18

promotes and provides for competition to be obtained to the maximum extent
practicable.

Question 19

The Reasons for Acquisition Planning

Acquisition planning promotes and provides for

Answer 19

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

Question 20

Purchase of Supplies In Economic Quantity

Answer 20

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

Question 21

Acquisition Plan Contents

Background and objectives

Answer 21

Defining the government’s needs,
performance requirements, and capabilities

Describing the conditions
Identifying trade-offs and risks

Estimating costs

Question 22

Acquisition Plan Contents

Plan of action

Answer 22

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

Question 23

Acquisition Plan Contents

Bundiling

Answer 23

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.

Question 24

Inherently Governmental Activity

It is the policy of the government to:

Answer 24

Perform inherently governmental activities with government
personnel, and

Subject commercial activities to the forces of competition.

Question 25

Inherently governmental function

Answer 25

As a matter of policy, a function that is so intimately related to the public interest as to mandate performance by government employees

Question 26

An inherently governmental function includes activities
that

Answer 26

require either the exercise of discretion in applying government authority,

or the making of value judgments in making decisions for the government.

Question 27

Inherently governmental functions do not include functions

Answer 27

that are primarily ministerial and internal in
nature, such as

security, mail, cafeteria operations, housekeeping and maintenance, or other routine services.

Question 28

Inherently governmental functions do not normally
include

Answer 28

gathering information for or providing advice, opinions, recommendations, or ideas to government officials.

Question 29

Inherently Governmental Activity

It is the policy of the government to

Answer 29

Perform inherently governmental activities with government personnel

Subject commercial activities to the forces of competition

Question 30

Inherently Governmental Activity

Agencies Shall

Answer 30

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

Question 31

Considerations When Determining Whether to Lease or Buy Equipment

Answer 31

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,.

Question 32

Considerations When Determining Whether to Lease or Buy Equipment

Answer 32

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

Question 33

Acquisition plans is defined as the process by

Answer 33

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.

Question 34

The acquisition team should consist of all those who will be responsible for significant aspects of the acquisition, such as

Answer 34

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

Question 35

If the plan proposes using other than full and open competition when awarding a contract, the plan shall

Answer 35

also be coordinated with the cognizant competition advocate.

Question 36

Agencies shall perform acquisition planning and conduct market research for all acquisitions in order to promote and provide for:

Answer 36

1. 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.
2. 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));
3. Selection of appropriate contract type in accordance with part 16; and
4. Appropriate consideration of the use of preexisting contracts, including interagency andintra-agency contracts, to fulfill the requirement, before awarding new contracts.

Question 37

To facilitate attainment of the acquisition objectives, the plan must identify those milestones

Answer 37

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

Question 38

Acquisition plans for service contracts or orders must

Answer 38

describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those methods.

Question 39

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

Answer 39

1. Statement of need: A brief description of the requirement.
2. Applicable conditions: Discuss any external constraints, in addition to requirements for computability with existing systems.
3. 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.
4. Capability or performance: This should address the required capabilities or performance characteristics and how they relate to the Statement of Need.
5. Delivery or performance-period
   requirements: This should discuss delivery requirements, including the rationale forany urgency that may result in a noncompetitive acquisition.
6. Trade-offs: Discuss any potential cost, capability performance, and schedule goal trade-offs.
7. Risks: Discuss any cost, technical, and schedule risks, along with planned efforts to reduce those risks.
8. Acquisition streamlining: Discuss the use of presolicitation industry outreach efforts and tailoring of requirements vcxz

Question 40

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:

Answer 40

1. Sources: Discuss potential sources for the need, including consideration of mandatory sources of supply, small business concerns, and interagency contracting vehicles.
2. 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.
3. Contract type selection: Explain the selection of contract type, including any additional documentation required for use of other than a firm-fixed-price contract.
4. 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.
5. 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.
6. 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).
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.
8. 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).
9. Contractor versus government performance:
   Address the consideration given to OMB
   Circular No. A-76 (see subpart 7.3).
10. Inherently
    governmental functions:
    Address the consideration given to subpart 7.5.
11. 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.)
12. Make or buy: Discuss any consideration given to make-or-buy programs (see subpart 15.407-2).
13. 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.
14. 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.
15. 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).
16. 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)).
17. 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).
18. 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).
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.
20. 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.
21. 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.
22. Identification of
    participants in
    acquisition
    plan
    preparation: List
    the individuals who participated in preparing the acquisition plan, giving contact information for each.

Question 41

Bundling may provide substantial benefits to the government. However, because of the potential impact on small business participation,

Answer 41

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

Question 42

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

Answer 42

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.

Question 43

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”

Answer 43

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.

Question 44

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:

Answer 44

purchase,

short-term rental or lease,

long-term rental or lease,

and interagency acquisition and agency acquisition agreements, if applicable with state or local

Question 45

Generally, the FAR gives preference to the purchase method if the equipment

Answer 45

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.

Question 46

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

Answer 46

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.

Question 47

The analysis of equipment acquisition methods and considerations is not required

Answer 47

when the president or agency has made an emergency determination as outlined in FAR

Question 48

When requested by an agency, the General Services Administration (GSA) will assist in rent, lease, or
purchase decisions by providing information such as

Answer 48

pending price adjustments to Federal Supply Schedule (FSS) contracts, recent or imminent technological developments, new techniques, and industry or market trends.

Question 49

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

Answer 49

reviewed and modified by appropriate Office of Management and Budget

Question 50

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

Answer 50

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

Question 51

Contractors may perform a wide range of support to activities that are inherently governmental, but the activities

Answer 51

must at all times be under the direct supervision and control of government