Running head: EFFECTIVE COMPLETION

Effective Completion of the Acquisition Process

EFFECTIVE COMPLETION Abstract The acquisition process is a very in depth in terms of rules and policies. With such a wide array of rules and policies it is essential that a plan be established. Acquisition planning ensures that

the contracting process is conducted in a timely manner, in accordance with statutory, regulatory, and policy requirements, and reflects the mission needs of the program.

EFFECTIVE COMPLETION Effective Completion of the Acquisition Process

One of the most important and effective requirements in the completion of the acquisition process is the planning. The acquisition process is a very in depth in terms of rules and policies. With such a wide array of rules and policies it is essential that a plan be established. Planning is key to getting the project off to a successful start (Engelbeck, 2002). Planning should begin as soon as a need is identified. Planning aides in the selection of the most appropriate strategy to meet procurement objectives, improved management of procurement, improved risk identification and risk management, better value for money outcomes, and improved relationships with suppliers. The Federal Acquisition Regulation (FAR) 7.101 defines acquisition planning as any effort that results in more efficient and effective use of resources to design and develop, or produce quality systems. This includes ensuring that only necessary and cost-effective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts for the design, development, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems. There are many steps involved in the planning process. Each step holds a significant value to the completion of the acquisition process. The first segment of the planning process is the formation of the acquisition team. The acquisition team must consist of knowledgeable individuals that are capable of handling their specific positions. Without a strong acquisition team the plan can be unsuccessful. Acquisition planning cannot be adequately discussed without including acquisition teams. FAR Part 7.104 (a) states 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

EFFECTIVE COMPLETION contracting, 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. The benefit of an acquisition team is being able to create a complete solicitation or proposal package. Acquisition planning consists of conducting appropriate research pertaining to the required need. Whether it be market research or background research, it is essential that the research be conducted. Research also provides valuable information about contracts, customers and competitors. This information is needed in the planning and developing of an effective bid strategy. The information from other agencies can be very useful in determining whether or not a business can meet the need. The planner should review previous plans for similar acquisitions and discuss them with the key personnel involved in those acquisitions (FAR 7.104). Researching prior problems, technical difficulties, maintenance and supply from other agencies can be used in the negotiation process as well. The final step in acquisition planning is to determine potential risks. Risk planning is a process that includes developing, documenting, and organizing a comprehensive interactive strategy that includes methods for identifying and tracking risk areas as well as developing risk handling plans and performing risk assessments to determine how risk change during the course of the acquisition (Engelbeck, 2002). There are many sources of risks that must be taken into

consideration; political, financial, technical, human and uncertainty. It is understandable that not all risks can be avoided, however, through planning, managers are able to be proactive as oppose to reactive in terms of handling potential risks.

EFFECTIVE COMPLETION Another aspect that makes planning important is the preparation and writing of the Statement of Need. By following the steps in the acquisition planning process, the contracting

officer is able to determine the exact need, priority of the need, bid method and contract type. In addition, the Federal Acquisition Regulation is very broad as far as rules are concerned. Determine which clauses are required for each contract can also be determined during the planning phase. FAR 7.102b states that planning shall integrate the efforts of 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. Without proper planning, many steps could be missed or overlooked that may cause the acquisition process to fail. Planning sets the tone for the completion of the acquisition process. Acquisition planning ensures that materials and services will be available to the project when needed. It also helps with the overall planning effort by identifying costs, funding sources, and the need for any contractual agreements. In addition, planning allows the acquisition team to set goals. Without goals it may be difficult to measure the success of each step or task. Therefore, through planning, not only can each step be tracked it can also be measured. While planning may be the most effective requirement in the completion of the acquisition process, there are also factors that are not as effective. Contract bundling has a history of not being fair and effective. The Small Business Reauthorization Act of 1997 defines contract bundling as consolidating two or more procurement requirements for goods or services previously provided or performed under separate, smaller contracts into a solicitation of offers for a single contract that is unlikely to be suitable for award to a small business concern.

EFFECTIVE COMPLETION FAR 7.107(a) states 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 market research to determine whether bundling is necessary and justified. Contract bundling has served a useful purpose; however, the effects of the increase in contract bundling over the past ten years cannot be under estimated. Fewer small businesses are receiving federal contracts. In addition, the federal government is suffering from a reduced supplier base (United States Department of Commerce, 2011). Small firms offer flexibility, competition, and lower costs to the federal acquisition community. These small firms contribute a great deal to the economy through the creation of jobs, competition and innovation. Contract bundling involves small business. There have been reviews in which small businesses are not receiving their fair share of share of federal procurements. The Federal government awards over $200 billion in contracts every year (United States Department of Commerce, 2011). In 2001, 11.4 million contracts were awarded which valued at $234.9 billion, while businesses subcontracted about $35.5 billion to small firms. A review conducted by the General Administration Office in March 2003, there were many areas that had a negative impact on contract bundling for small business. The main issues concerning contract bundling for small businesses involved the collection of data while reviews were being conducted. Instead of conducting on-site reviews, SBA personnel were conducting partial reviews or desk reviews. One of the reasons specified for the lack of proper reviews was the work load of SBA personnel. Another factor is the lack of involvement from management.

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Agencies were struggling to collect reliable data for a number of reasons. Achievements had not been established due to lack of measures and requirements. Procurement Center Representatives appeared to have other priorities that effected the time and effort put forth to monitor contract bundling. In addition, declining staff and travel funds affected how information was being reviewed. The Office of Federal Procurement Policy (OFPP) listed three strategies in order to alleviate the problems involved with contract bundling. Federal agency managers will be required to provide period reports to the Office of Management and Budgets (OMB) Deputy Director for Management on the actions taken to address contract bundling issues. In order for the reports to be effective OFPP should establish specific information that can be measured. In doing so, OFPP can track the progress and areas that may require additional focus. This method will also help in making managers accountable for the improvements or lack of. Contract bundling has a history of having more negative aspects than positive aspects. It appears that through a lack of proper planning, many aspects have been overlooked. In addition to the three strategies given by the OFPP, another aspect is to enforce standards for the Procurement Center Representatives and Subcontracting Assistance Program. As stated earlier, planning is essential to any project, task or acquisition. Prior to any acquisition, proper market research must be conducted so that the government can have the maximum benefits possible. The completion of the acquisition process has a wide range of factors that are involved. Determining the most effective policy or the least effective policy is based on assumptions and opinions. This paper is based on personal opinions. While planning is essential in preparing for any action, it may not be deemed essential to every individual.

EFFECTIVE COMPLETION This applies for the assumption that contract bundling is the least effective policy within the completion of the acquisition process. Again, without having hands on experience it is hard to determine what would be considered least effective. However, based on the historical information that has been provided through research, an assessment has shown that contract bundling has some areas that should be improved upon.

EFFECTIVE COMPLETION

References Acquisition Community Connection (2011). Contract Bundling. Retrieved from https://acc.dau.mil/CommunityBrowser.aspx?id=24960 Engelbeck, R. M. (2002). Acquisition Management. Vienna, VA: Management Concepts, Inc. GAO-03-599T (2003). Small Business Contracting Concerns About the Administration's Plan to Address Contract Bundling Issues. Retrieved from http://www.gao.gov/new.items/d03559t.pdf General Services Administration (2005). Federal Acquisition Regulation. Washington, DC. United States Department of Commerce (2011). Contract Bundling Action Plan. Retrieved from http://www.osec.doc.gov/osdbu/Assets/PDFs/ContractBundl_ActionPlan.pdf