Acquisition Planning and Adequate Market Research

1. Acquisition Planning and Adequate Market Research National Oceanic and Atmospheric Administration Acquisition and Grants Office Oversight and Compliance Branch

2. Agenda • General Requirements (FAR 7.102) • Acquisition Plan Formatting • DOC Planning Levels • Helpful Tips in Preparing Acquisition Plan

3. General Requirements The Purpose of Acquisition Planning Acquisition planning must involve all personnel responsible for significant aspects of the acquisition. The purpose of this 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’s need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary. This training is designed to assist in effective acquisition planning throughout NOAA. (Ref CAM 1307.1)

4. General Requirements FAR Part 7 and Acquisition Planning IAW FAR 7.102(a) Agencies shall perform acquisition planning and conduct market research (see FAR Part 10) 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. 251, et seq.); and (2) Full and open competition (see FAR 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. 2301(a)(5) and 41 U.S.C. 253a(a)(1)). (3) Selection of the right contract type in accordance with FAR 16.

5. General Requirements NOAA and Acquisition Planning NOAA shall follow Department of Commerce (DOC) established policy for acquisition planning as outlined in FAR Part 7. The DOC has identified three acquisition planning levels, each requiring a different degree of planning. The extent of acquisition planning is contingent upon a variety of factors such as the dollar value of the action, mission criticality, risk level, visibility and project complexity. These factors will determine the applicable Acquisition Plan to implement for the acquisition. (Ref CAM 1307.1)

6. DOC Planning Levels Milestone Acquisition Plans Applies to acquisitions where anticipated total life-cycle cost > SAT, but < $10 million; or acquisitions with life-cycle cost < SAT when simplified acquisition methods are not used. Milestone acquisition plans identify acquisition objectives and outline the actions, milestones and documents required to meet the acquisition. Formal Acquisition Plans Applies to acquisitions where total life-cycle cost > $10 million. A formal acquisition plan identifies all significant technical, cost and business issues of a requirement and provides specific solutions to address any critical issues in the proposed acquisition. The formal acquisition plan also requires development of a milestone acquisition plan. Advanced Acquisition Planning Forecast Applies to acquisitions where total life-cycle cost is expected to > SAT; or acquisitions with life-cycle cost expected to be < SAT when simplified acquisition methods are not used. Forecasts involve the identification of planned acquisitions during the budget formulation process and must commence before the fiscal year begins in order to improve scheduling of actions, increase control of 4th Qtr obligations, and further opportunities for consolidating requirements. (Ref CAM 1307.1)

7. Acquisition Plan Formatting Top 8 Areas to be Addressed -- Acquisition Background Plan of Action Funding and cost consideration Technical considerations Contract considerations Environmental consideration Security Special considerations and waivers

8. Acquisition Plan Formatting Supporting Documentation for “Top 8” • Acquisition method (i.e. IDIQ/GWAC/T&M, fixed price, etc.); • Total life-cycle cost of planned acquisition; • Current FY obligation amount; • Obligation amounts for FYs covered by the acquisition forecast; • Actual/expected SB size status of contractors; • Period of performance; • Point of contact information; and • Required contract completion date. • Organization code; • Servicing acquisition office; • Expected acquisition type; • Brief description of planned acquisition that explicitly identifies details. • Primary NAICS code; • Expected level of competition; • Required delivery or beginning date (if applicable); (Ref CAM 1307.1)

9. Helpful Tips Describing Agency Needs State requirements in terms of -- • Functions to be performed • Performance required • Essential physical characteristics Goals -- • Provide contractors maximum opportunity • Leverage the expertise of industry

10. Helpful Tips Requirement Documents may include-- • SOW-statement of work • SOO-statement of objectives • Specifications-- • Design Specifications • Performance Specification

11. Helpful Tips Design Specifications • Actual description of the product to be purchased • Precise measurements, tolerances, materials, tests, quality control, inspection, & all other known information • Used when technical requirements are firm & can be clearly communicated to potential contractors

12. Helpful Tips Performance Specifications • Identify operational characteristics of the item to be acquired. • Ask--What does the item need to do? • Tells potential contractors what the item needs to do rather than specifying what the item is.

13. Helpful Tips Good Practices • Be thorough and complete • Emphasize results rather than design or management directives • Allow flexibility • Don’t be restrictive • Don’t compromise requirements to increase competition • Perform your Market Research!

14. Helpful Tips What is Market Research? Market Research is a process used to collect, organize, maintain, analyze, and present data for the purpose of maximizing the capabilities, technology, and competitive forces of the marketplace to meet the agency’s needs for goods and services. It is important to perform market research in order to foster competition, determine commerciality of products and services, reduce risk to the Government, develop acquisition plans and remain in compliance with FAR Part 10.

15. Questions??