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2.2 Acquisition Methodology

2.2 Acquisition Methodology. “Acquisition methodology” – the processes employed and the means used to solicit, request, or invite offers that will normally result in issuing a contract. BUYERS

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2.2 Acquisition Methodology

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  1. 2.2 Acquisition Methodology

  2. “Acquisition methodology” – the processes employed and the means used to solicit, request, or invite offers that will normally result in issuing a contract. BUYERS The process by which buyers develop a comprehensive plan for fulfilling requirements for products or services in a timely manner and at a reasonable price. Includes developing an overall strategy for the purchase: * Market research * Developing a strategy * Drafting solicitation * Selecting supplier SELLERS The process by which sellers develop and execute a strategy for obtaining the award of a contract. * Market strategies * Pricing strategies * Responding to solicitation

  3. Acquisition Plan • The level of detail will vary depending on anticipated dollar value, level of complexity, degree of significance, public vs. private sector, etc. • When required, written acquisition plans should include: • Description of the need to be satisfied • Explanation of conditions or constraints • Cost targets • Required capabilities or performance to be acquired • Delivery or performance requirements • Trade-offs related to cost, technical performance, capability and schedule • Level of risk associated with technical, cost and schedule • Contracting plan of action

  4. Solicitation Preparation • Format and content of solicitation packages and resulting contacts are often mandated by law, regulation or corporate policy (Uniform Contract Format, FAR 15.204-1).

  5. Statement of Work (SOW) • Describes the goods or services required in sufficient detail to provide potential offerors with a complete understanding of the requirement. • Three basic types: • Design • Performance • Functional • Statement of Objectives (SOO)

  6. SOW cont. • SOWs normally contain the following elements • Objective • Scope • Description of Work Required • Performance Standards & Reporting Requirements • Staffing Requirements • Resources to be Provided • Reference Documents

  7. Contract Type & Method • Discretionary decision made by the contracting professional • Consistent with level of complexity and uncertainty inherent in the SOW • Reflect an appropriate level of RISK for buyer and seller • Conform to appropriate law, regulation or corporate policy • Promote successful accomplishment of contracting function and organization’s goals

  8. Terms & Conditions • Helps define the business relationship btw buyer and seller and the rights and obligations of both. • Primary function – to eliminate or reduce the risk of contract ambiguity.

  9. Evaluation Procedures • General procedures that the buyers will use to evaluate proposals and the decisions that they will make for the basis of award. • How will proposals be evaluated? • What are the factors that make up the evaluation? • What is the relative importance of each factor? • Factors can include: • Price • Cost Realism • Technical Excellence • Management Capability • Past Performance

  10. Instructions for Preparing & Submitting Proposals • Purpose – to help insure that uniform submissions are received from offerors to permit a fair and unbiased evaluation process.

  11. Other Requirements • Buyer can use a variety of techniques to validate solicitation package for completeness and accuracy: • Independent technical review • Obtaining marketplace comments • Pre-solicitation notices and conferences

  12. Publicizing • General rule – seek the maximum level of meaningful competition whenever possible • Government agencies • Single location to provide a uniform source of information (FBO) • Commercial organizations • Various media outlets • Regardless of method, want to ensure your target market of potential offerors is aware of the opportunity

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