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Acquisition Planning Guide

Version 2 • Release 1

Table of Contents

1. Introduction.............................................................................................................3

2. Understanding the Requirement...........................................................................4

3. Performing Market Research.................................................................................53.1. Finding Sources and Market Analysis..............................................................6

4. Developing an Acquisition Strategy......................................................................9

5. Preparing the Acquisition Plan............................................................................13

6. Conclusions...........................................................................................................16

7. References.............................................................................................................177.1. Regulations....................................................................................................177.2. Policies and Instructions................................................................................17

A. Market Research Checklist..................................................................................18Market Research Checklist and Worksheet...........................................................18Helpful Hints for Market Research.........................................................................23

B. Acquisition Plan Contents...................................................................................247.105 Contents of Written Acquisition Plans (FAR Part 7).....................................24

C. Acquisition Plan Template...................................................................................30

D. Acquisition Process..............................................................................................31

E. Acquisition Package Checklist............................................................................33

Version 2 • Release 1 ii Acquisition Planning GuideNot for publication or reproduction. All copyrights retained by Department of Veterans Affairs.

1. IntroductionCongratulations! You’ve been asked to lead/create the Acquisition Plan for your program. Time well spent here will save your program time, money, and a lot of heartache later on. Government Accountability Office (GAO) and Inspector General (IG) audits routinely cite the failure to effectively plan for procurement as one of the major reasons why projects and programs fail to meet their objectives. Don’t let this happen to you! Acquisition planning requires a coordinated effort by all members of the acquisition team (this includes the user, the program, the contracting officer (CO), and industry) to help assure the government receives the best value in products or services it purchases. Acquisition planning consists of some common sense actions that will make you an informed federal consumer, not unlike what you might do before making a major purchase with your own money. The basic questions to answer are:

What are we buying?

Does anyone make what we need?

How much are we willing to pay?

How will we go about getting bids?

How will we determine whom we buy it from?

What do we have to do to make sure we get what we pay for and that it will meet the requirements?

All these questions, and more, are the focus of the process of acquisition planning. So, let’s get started.

Version 2 • Release 1 3 of 34 Acquisition Planning GuideNot for publication or reproduction. All copyrights retained by Department of Veterans Affairs.

2. Understanding the RequirementIt all starts with the requirement. You need to make sure that you know what you’re going to be buying. If you don’t know what “it” is, how can you expect a CO or vendor to understand? So, the first step is to make sure you know everything about the requirement and that it is clear. The basic rule is to know the fit, form, and function. What is it supposed to do? Is it hardware, software, both, or something else? Does it have to work with other things to provide the benefit you need? Are there specifications it must meet? How about security requirements? What you are buying will vary from procurement to procurement, but in each case, you must thoroughly understand what “it” is in as much detail as you can gather. This may require several meetings or discussions with those who have generated the requirement. In the end, the better you know what you are going to buy, the easier the acquisition planning will be.

You should already have access to documents related to the Strategic Statement of Need for the program, along with an overview of the functional and technical requirements. With this documentation, you can begin to sort out what parts will be done by government resources and which parts will be contracted out to qualified contractors. Acquisition planning is performed in parallel with other program planning activities, and these other activities will help complete essential portions of the Acquisition Plan.

You might have some help. For those acquisitions more than $5M, the project will be supported by an Integrated Project Team (IPT) (see IL 001AL-09-05). This team brings a lot of expertise to the program, and one of the responsibilities of that IPT is to help create the Acquisition Plan.

The chief benefit of acquisition planning is that many of the products created are used to complete supporting documents in the procurement request package sent to the CO to start the solicitation process. President Lincoln, once a well-known fence builder, is credited with saying if he had 8 hours to build a fence, he’d spend the first 2 hours thinking about it. So, it is with procuring goods and services in the federal government—the better you plan, the easier it will go.


You’re Not in It Alone!

Procurements more than $5M require an

IPT!

3. Performing Market ResearchNow that you are clear about what needs to be purchased and how “it” will be used to create the benefit to the organization, market research can begin. Your primary task is to assemble as much knowledge as possible about where you can buy it and under what terms and conditions. Where do you start? First stop is your local, friendly neighborhood CO. Find out who (and what office) will be processing the procurement for your organization. Go meet them and let them know that you are working on this Acquisition Plan. Ask them four questions:

1. Have we ever bought this (or something like it) before? Find out all you can about that prior purchase: when it was, who bid on it, who won the award, what the contract value was of the award, how it turned out, were there any issues, what evaluation factors did they use, etc. No sense in starting from scratch if you don’t have to.

Check Vendor Performance

Check out the National Institutes of Health's (NIH’s) Contractor Performance System (CPS) at http://oamp.od.nih.gov/OD/CPS/cps.asp

Review contractor performance information by reviewing contractor interim and final evaluations on the Past Performance Information Retrieval System (PPIRS) (www.ppirs.gov/)

2. Can I examine your records? All contracting officers keep a complete record of each procurement action from the time they get the request until the contract closes out. Find out how long the procurement took from the date of the request to the award date. Ask if this is the current admin lead-time today (it may be longer or shorter). Some of the procurement information will be sensitive, so keep it protected – government use only.

3. Can I have a copy of the procurement request package? The documents in the previous package will be a great starting place for you or your team. If its several years old, you’ll need to consider how things have changed since then. Lots of laws, regulations and practices have changed. Markets have narrowed or expanded. Firms have consolidated or gone out of business altogether. Newer technology could be available that was not even imagined back then. Find out if the contracting office has any guidebooks that might help you complete your tasks.

4. Can I come back to talk to you again? If your IPT does not have a CO or specialist assigned, then make good use of your new best friend. But don’t overuse them, as they have an incredible workload, and your turn will come soon enough. Do your homework and contact them only if you can’t find the answer yourself.

You should also have a conversation with the CO about the requirement for publicly disclosing this future procurement, called an Advance Procurement Plan, or a synopsis.


This is done through the Government Point of Electronic Entry (GPE for short and which is the Federal Business Opportunities Web site) and VA’s own Web site. The CO will likely ask for your help in posting this information and will need information from you to do so.

3.1. Finding Sources and Market AnalysisWith or without this historical head start, you must start looking at the external marketplace to find sources and information about what you need to procure. Find out all you can about who makes or does what you need. Is this even available for sale in the marketplace? What are the industry characteristics? Is there one major player, or are there many different sources for what you need? Many sources usually mean better availability, lower acquisition costs, more features and benefits, favorable discounts for large orders, responsive customer service, advantageous warranties, etc. Few or single sources can mean just the opposite.

How do you find out? You have to do market research. If what you are looking for is a common commercial item, it may already be around. According to the Federal Acquisition Regulation (FAR), the first source of supply is excess inventory. Did you know that the government has storage places full of excess materials? Some of it is slightly used, but some of it is brand new! It depends on what you’re looking for. Brand-new, 10-year-old computers are probably not going to meet your needs. Industrial equipment could be another story. If you are lucky enough to find it here, you will usually only pay transportation costs to get it. Not a bad deal. From this point on, we’ll assume you need to procure it from the marketplace.

How can you find sources quickly? A good place to start is with the General Services Administration (GSA). The GSA has many large agreements already in place called Federal Supply Schedules. In fact, they have more than 30 Schedules covering 12,000,000+ commercial items with more than 14,000 companies. If it’s available in the commercial market, you can probably find it on a Federal Supply Schedule. Just go to https://www.gsaadvantage.gov. It has a quick search engine, and all you have to do is type in the item you need and many possible sources will be displayed. GSA has also awarded several contracts for the severely handicapped or Federal Prison Industries. These are the next preferred sources of supply.


https://www.gsaadvantage.gov/

Useful Internet Sites:

abilityonecatalog.com : products from blind and severely handicapped industries

ccr.gov : A registry of more than 400,000 firms doing business with the federal government

contractdirectory.gov : A central repository of indefinite delivery/indefinite quantity (IDIQ) contracts available from federal agencies vetbiz.gov: vendor information pages for veteran-owned small businesses

fbo.gov : the central point for publicizing federal business opportunities to include request for proposals (RFPs), request for quotations (RFQs), and requests for information (RFIs)

unicor.gov : products manufactured by Federal Prison Industries

vaadvantage.gsa.gov : pharmaceutical and medical supplies available from existing VA contracts

Other sources can be found in your own contracting office. Many agencies have “umbrella” contracts with several companies. These are called IDIQ contracts, or GWACs (government-wide acquisition contracts), and they are potential sources to meet your needs. The big advantage of these and the GSA schedules is that they have already been competed, prices are already established, and the timeline from solicitation to award can be incredibly short compared to a new solicitation effort. You can find these existing contracts by visiting the web site https://www.contractdelivery.gov.

Your local CO can also help you set up an “industry day,” where you can invite interested bidders to a meeting to talk about your needs and interact with them to determine interest or products that might meet your needs.

If you search on Google, you’ll probably get thousands of hits. You’ll want to check out the companies carefully to make sure they will be responsible vendors. Another method to find sources and product ideas is to work with the CO to release an RFI. Potential vendors will see this as an opportunity to tell you more about themselves— their capabilities and their methodology for implementation—or give you some feedback about your need. This can come in the form of a capabilities statement or a white paper with specific information you request in the RFI. It’s not a proposal, just information, so no quotes or pricing information will be included. The RFI must come from the contracting office and be publically disclosed. If you do use this, be prepared to read and process a lot of information from lots of vendors.

Market research is a process of finding out about the market, the pricing structure, and the availability of the items you need. You may also discover pertinent information about the requirements you’ll want to share with the program manager, staff, and/or the user. This information might change their minds about the requirement, so be sure to share pertinent discoveries as you progress in researching the market.


https://www.contractdelivery.gov/

http://www.vaadvantage.gsa.gov/

http://www.unicor.gov/

http://www.fbo.gov/

http://www.vetbiz.gov/

https://www.contractdirectory.gov/

http://www.ccr.gov/

http://www.abilityonecatalog.com/

Procurement Ethics Alert!

Make sure you tell any vendors that:

You are only performing market research You are not placing an order or requesting a quote or a proposal

You are requesting publically available information

You do not provide any budget or funding information, as this is proprietary info

If the government decides to solicit offers, it will come from the contracting office

While performing market research, it is important to tell vendors that what you are doing is for information purposes only and you are not requesting a formal proposal to perform the work or receive any products. Use the words “market research.” Seasoned government contractors know this is a key phrase and may know its meaning better than you. If they try to “pump” you for additional information related to the reason for your call, confine your conversation to what you want to know about. If a vendor insists on compensation for the information, refer them to the CO and terminate the conversation. Do not discuss other programs within your organization. Your focus is on what you are researching for this program. You should also make it clear that you are not an “agent of the government” and have no authority to obligate the government. Make sure any others helping out with market research also know these communication guidelines.

Much information about the market and specific potential vendors can be found at tradeshows or conferences. Almost all of these have exhibit halls with lots of free information and goodies. When dealing with contractors, make sure you are aware of the ethical and legal guidelines relative to receiving gratuities and protecting procurement sensitive information. Market research is initiated before the solicitation has begun, so you can talk more freely. During this period, you are gathering information and you will have to share some as well. Be careful about what is shared and make sure it is appropriate and shared with every prospective bidder. In fact, it’s a good idea to document information shared relative to your requirement, and pass this along to the team. In this stage of the contracting cycle, pre-solicitation discussions must not give one vendor more information than another. You want to have a level playing field when the solicitation is released. It enhances the competition and reduces the risk of a protest that will slow things down!

You may find the market research checklist in Appendix A helpful in guiding your data collection efforts during the market research you’re conducting.


4. Developing an Acquisition StrategyThe information gathered in market research will help you start to form a strategy for the acquisition. Your initial study of the sources and the market in general will give you a better understanding of the competitive environment and likely bidders and what they have to offer. Once you have a good handle on the market, you can start preparing for the solicitation stage. Don’t stop your market research; continue to stay alert for new information that might influence what conclusions you have drawn. In this stage of your planning, the important questions to answer include the following.

Is there adequate competition? You will need at least three responses to demonstrate you have satisfied the requirement for adequate competition. You probably don’t want 300 responses—that would be a nightmare to evaluate and award. If you find there is only one reliable source, then you need to prepare a Justification for Other Than Full and Open Competition, as outlined in Appendix B. The CO will not be happy about this. The CO will have to do a Determination and Finding (D&F) and get it approved through channels (see table below). There are only a few valid reasons for a sole source procurement. The CO will be able to explain these to you, and you will have to carefully document the justification. This will also take more time, so the “average admin lead time” will not apply. Appendix B has the format for this justification and as you can see, it requires a lot of information. Sole source procurements have to be publicized, and anyone can challenge the decision, which will have to be reviewed—all of which takes even more time. Further, a sole source procurement raises the risk of protest. And protests take a lot of time and effort to resolve. Competition is your friend; it makes everything easier.

Sole Source Approving Authority (VAAA 806.4)

Proposed Contract Amount Approving Authority

Not exceeding $500,000 CO

More than $500,000 but not exceeding $10 million Contracting Activity Competition Advocate

More than $10 million but not exceeding $50 million Agency Competition Advocate

More than $50 million Senior Procurement Executive


Will a commercial product or service satisfy your requirement? Federal government acquisition policy favors the purchase of commercial products or services. A commercial product or service is one that is sold in substantial quantity to the general public for other than government use. A product may be modified and still be considered a commercial product as long as it retains its primary functionality. Some of the major advantages of purchasing commercial products or services are:

They are readily available and a fair and reasonable price is likely to be obtained

There are no development costs

The product is most likely warranted

They are products of proven quality (otherwise the firms could not survive)

The delivery time is minimal compared to new or unique products that have yet to be developed and tested

What type of work statement will I use? Traditional or performance-based work statements are used to convey what the government wants the vendor to do. Traditional work statements are more direct in nature and much more specific. Performance-based work statements are more flexible and allow the vendor to tell the government how they will meet the procurement’s objectives. The type of work statement used may impose risks on the government. If you are requesting services, then performance-based work statements are encouraged. Given the requirement, you should determine which is the best way to enter into the market with the solicitation.

Can small, disadvantaged businesses provide the requirement? Federal government acquisition policy requires that special consideration must be given to the capabilities of small businesses to fulfill the requirement. Normally, competition is only limited to small businesses. This is called a “small business set-aside.”There are several types or categories of small business set-asides permitted by law. Competition may only be limited to firms that are classified as:

Small business firms

Service-disabled veteran-owned small businesses (SDVOSB)

Small disadvantaged businesses

Small businesses located in a Historically Underutilized Business Zone (HUBZone)

VA policy requires that preference must be given to limit competition to SDVOSB and/or veteran-owned small businesses VOSB pursuant to Public Law 109-461,


referred to as “Veterans First.” When conducting market research, VA personnel must visit the vendor database at http://www.VetBiz.gov (see IL 049-02-14). If no SDVOSB or VOSB are identified, then competition should be limited to other categories of small businesses listed above. Only after the determination has been made that small businesses cannot fulfill the requirement at a fair and reasonable price is full and open competition to be considered.

What type of contract should be used? A variety of contract types are used in federal government contracting. The CO will make the final determination based on the facts available for each particular acquisition. The IPT should be able to make a recommendation to the CO from the market research information. The two most common categories of contracts used within VA are Firm-Fixed-Price (FFP) and Cost Reimbursement (CR).

FFP. In a fixed-price contract, the government pays one bottom line price. The contractor assumes total cost risk for performing at that bottom line price, but the burden of describing the requirement falls on the government. FFP is the preferred type when cost risk is minimal or can be predicted with a high degree of certainty. Most commercial items or services are priced on a fixed-price basis. The government prefers this type of contract whenever appropriate. The majority of VA contracts are fixed-price.

CR. Under a CR contract, the government agrees to pay the contractor its “allowable incurred” costs to complete the contract work using its “best efforts”. The contractor’s cost risk is minimal, and the government’s cost risk is maximized. If the contractor cannot complete the work within the estimated cost, the government may decide to add more funding to the contract and permit the contractor to continue to operate in a “cost overrun” status. A cost contract is suitable for use when uncertainties involved in contract performance do not permit costs to be estimated with a sufficient degree of confidence to use a fixed-price contract.


http://www1.va.gov/oamm/docs/library/ils/il02_14.pdf

http://www.VetBiz.gov/

Acquisition Plan Contents

Acquisition Background and Objectives Plan of Action

Strategic Statement of Need

Applicable Conditions

Cost

Capability or performance

Delivery or performance period requirements

Trade-offs

Risks

Acquisition streamlining

Sources

Competition

Source selection procedures

Acquisition considerations

Budgeting and funding

Product or service descriptions

Priorities, allocations, and allotments

Contractor versus government performance

Inherently governmental functions

Management information requirements

Make or buy

Test and evaluation

Logistics considerations

Government-furnished property

Government-furnished information

Environmental and energy conservation

Security considerations

Contract administration

Other considerations

Milestones for the Acquisition Cycle

Participants in Acquisition Plan preparation

At some point in your research, you will begin to form conclusions about the market, the vendors, the acquisition environment, and what is needed to execute a successful procurement action. When you have reached that point, it’s time to convert your notes into an Acquisition Plan. Keep your eyes and ears open for any new or different information pertinent to this procurement that might be important.


5. Preparing the Acquisition PlanThe content of the Acquisition Plan will depend on the nature of the requirement and the preliminary results of your market research. The box on the previous page shows the contents as listed in the FAR. Appendix C has the full description of these sections from the FAR. Appendix D is the VA Template for the Acquisition Plan and is based on the FAR and VA guidance. Acquisition planning is the first phase of VA’s acquisition process, which is outlined in Appendix E. As is mentioned elsewhere in this guide, proper and adequate acquisition planning is very important to a successful procurement action as well as a successful project or program. Make sure you take the time to do it right!

The highlighted sections reflect information that relates to documents in the procurement package. This is the request sent to the contracting office to initiate the solicitation process. You and your team may be asked to help complete these supporting documents based on your newly acquired market knowledge.

The Acquisition Background and Objectives section is a summary of the requirement and how it fits into the overall plan for the program. This will confirm the acquisition planning team’s understanding of the requirement and how it fits into a schedule of activities. Discussion with the program or project manager (PM) and the rest of the team will highlight the different aspects related to the cost and risk tolerance for this project, and the relative importance of the trade-offs between them, delivery, and performance or quality.

The Plan of Action section is where your notes from market research will come in very handy. Many of these sections address the topics we have suggested you investigate: sources, competition, product descriptions, and timelines. You will collect other information from various sources on the team and collaborate with other VA staff members that are specialists in their field. Specialists in environmental and energy conservation will probably not be assigned to the team full time. It will be your task to stay aware of these issues and request assistance, as it is needed. Be sure to keep your PM advised of any issues that arise or if you need help getting that assistance.

One of the most important components is the Milestones for the Acquisition Cycle. At the beginning, you asked your servicing CO for an estimate of the administrative lead time. Most COs track this by means of a procurement administrative lead time (PALT). This is the time it takes the contracting office from receiving a complete and correct procurement request package until a contract is awarded. Depending on the type of contract and the CO’s workload, PALT could be quite lengthy.

Some contract types can take up to 200 days or more to make it through to award, while others can take as few as 30 days. Another issue to be aware of is fiscal year-end cutoff dates. That’s the last calendar day when procurement requests of certain types are accepted for processing. These are usually based on the PALT and the estimated contract dollar value. A good rule of thumb is the larger the contract value, the earlier


the cutoff date. Some cutoff dates are as early as May 1. Some lessons learned in this regard are listed below.

Make sure your procurement request package is perfect. Check in with the CO and get a good understanding of all the documents required and what the standard is for completing them. See if they can review the ones you’re not sure of before you submit them.

Talk to someone that just submitted a request to see what issues they had and don’t let that happen to you.

Get all the proper approvals and double check that the funding is available before submission. Make sure the funds stay available while the request is going through the CO’s office. Strange things happen at year’s end, and money has been known to disappear in a chief financial officer (CFO) sweep! Getting it back can be very difficult.

For the other milestones, on the list make sure you record who is responsible for completing their actions and monitor their progress

Another important and often overlooked item is Government-furnished Property and Information (GFP/GFI). This could be an important item in the solicitation, and you don’t want to discover it in the post-award kickoff meeting. Property is more difficult that information, so pay particular attention to that in your planning. Make sure you include what that property/information is; what condition it is in; and if not on hand, who/when/how it is to be procured. The contractor must account for GFP, so they will need to know the custodial and record-keeping standards to meet. Both GFP and GFI will impact the contract administration duties of the contracting officer’s representative (COR). Think ahead about what the likely disposal procedures will be when the contract is closed out. This is usually the next-to-last item on the closeout list. Completing the contractor’s performance evaluation is usually the very last.

Security considerations include personal security clearances for contractor personnel for access to buildings and systems. Make sure this is considered in light of the products and services being procured.

Budgeting and Funding issues are always highly visible to contractors and CORs alike. What is the funding profile for this acquisition? Will option years be included in the contract? You’ll need to check in with the funding authority to verify the availability of funds for the initial procurement as well as the budget for future options. As the procurement progresses and proposals are evaluated, the prices being quoted may not be in line with the budgetary estimates. Include in this section how those issues will be resolved and who should be involved.

Source Selection Procedures should be discussed with the PM. There will be a more comprehensive Proposal Evaluation Plan submitted with the procurement request. Now is the time to begin thinking about how to shape those factors and sub-factors. It is also important to begin thinking about the relative importance of those factors. Will technical


be significantly more important than price, or just slightly more important? Will you use adjectives to rate proposals and colors, or use a Likert scale? Who should be on the source selection team? Who shouldn’t?

These components form a list of topics you should be looking for when conducting market research. Several of these components are also important to completing the supporting documents included in the procurement package. As in the Acquisition Background section, these topics will also require discussion with the PM and other members of the team to address.

It’s not too early to think about Contract Administration. Who will be the COR? Your name might come up. Determine what certification level the COR should have for this program. Inspection and acceptance procedures are also important to consider for the goods and services that will be delivered. Include the CO in this conversation—there are standard clauses commonly used that might help your planning. Another consideration is the contractor surveillance procedures to be used for services contracts. Will Earned Value Management (EVM) be used as a tool?

Under Other Considerations, don’t forget to include any special provisions for capital investments and reviews by the Veterans Affairs Capital Investment Board. If Section 508 compliance is an issue, make sure those are addressed. Be sure to identify any other reviews and approvals not already covered. Two other items to consider are conflict of interest and inherently governmental functions. Would a contractor working on this contract have an organizational conflict of interest? The contractor might if another organizational element was involved in other areas. This subject has gotten a lot of attention recently, and it’s good to keep it in mind. The CO will have specific ways to deal with this in the solicitation, but your analysis could be helpful. Recently, inherently governmental functions have gotten a lot of attention as well. PMs should carefully review the work being performed by contractors and determine if that work is in compliance with these new interpretations.


6. Conclusions The process of acquisition planning requires an inventive and persistent

application of some common sense actions. If you were going to spend $150,000,000 of your own money, you’d probably apply a great level of due diligence before making a contractual agreement. This is no less expected when public money is being used to make the purchase, perhaps even more so.

Market research will give you greater knowledge of sources, market conditions, and competitive structure of the industry. As you gain more appreciation of the turbulence or stability of the targeted market, you begin to get a good sense of who the dominant firms are, who has a specific “niche” in the market, and which small and disadvantaged firms could do some or all of the work to satisfy the government’s need. Just remember that competition is your friend.

Research internally as well as externally. Start with an introduction to the CO, who should know if this has ever been done before. The CO has records and lessons learned that could jumpstart your inquiry. Use the government databases that track vendor performance to check out leading contenders. Use the resources identified to find existing contracts to which you have access that might speed the process along.

If you’re with a large program or project, you are not in this alone. Members of the IPT may already have some good experience you can draw on, and they will fill a vital role in some areas that need to be covered.

The Acquisition Plan is really the start of the process to prepare the procurement request and its supporting documentation. Information gathered in this process will better inform the whole team as it works through the many issues required to navigate through the acquisition process. This will get the supplies, services, or products in hand required to realize the benefits that generated the Strategic Statement of Need at the beginning.

Market research never really ends. Even after contract award, the market and technological advances continue. Needs or priorities change, money and the market shrinks—or grows—and programs evolve with them. Every program would be well served to maintain an eye on the market and be alert to changes that might affect them.


7. References7.1. Regulations

Federal Acquisition Regulation (FAR https://www.acquisition.gov/Far/

Veterans Affairs Acquisition Regulation (VAAR) http://www1.va.gov/oamm/oa/ars/policyreg/vaar/index.cfm

7.2. Policies and Instructions Veterans Affairs Acquisition Resource Center Homepage

http://www1.va.gov/oamm/oa/nac/index.cfm

Veterans Affairs Publications http://www1.va.gov/vapubs/


http://www1.va.gov/vapubs/

http://www1.va.gov/oamm/oa/nac/index.cfm

http://www1.va.gov/oamm/oa/ars/policyreg/vaar/index.cfm

A. Market Research ChecklistMarket Research Checklist and WorksheetMarket research involves obtaining product information from various sources (Internet, magazines, trade journals, Thomas Register, conferences, trade shows, affiliations, and other sources). Market research is a continuous process; you are performing it as part of your daily routine while interfacing with industry. The extent of market research will vary depending on such factors as urgency, estimated dollar value, complexity, and past experience. Begin specific market research at the time the need is identified. This will expedite the acquisition process. Once the acquisition is assigned, your CO can continue to assist you in this process.

Acquisition planning, which includes market research, 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.

Complete the following checklist before writing any Acquisition Plans, justifications for other than full and open competition, or purchase requests.

1. Is the acquisition a new requirement for the agency?

a. Yes b. Yes, and there is an existing contract available for this requirement.

Blanket purchase agreement

Indefinite delivery contract

Mandatory contract (i.e., SEWP)

Other government-wide acquisition contracts (GWACs)

c. No

The incumbent contractor is:

If so, the contract number is:

Provide contract history, if known:


This is an option under an existing contract:

2. Describe the government's needs stated in terms sufficient to allow conduct of market research.

3. Is the estimated value of the acquisition in excess of $25K?

4. Use the following techniques to complete the market research for this requirement (one or more may be used depending on the complexity of the requirement and the availability of information in the market). Attach the documentation for each to this checklist.

Contact the CO to issue a market survey synopsis in Federal Business Opportunities (FBO) (http://www.fbo.gov) to obtain potential sources. This step is highly encouraged because it will provide the widest dissemination of the request for sources.

Search award announcements in FBO to find sources as well as review descriptions and search GAO decisions.

Contact knowledgeable individuals in government and industry regarding market capabilities to meet requirements.

Review the results of recent market research undertaken to meet similar or identical requirements and review prior procurement files for similar or same items.

Publish formal RFIs in appropriate technical or scientific journals or business publications.

Query government databases that provide information relevant to agency acquisitions.

Participate in interactive, online communication among industry, acquisition personnel, and customers.


http://www.fbo.gov/

Obtain source lists of similar items from other contracting activities or agencies, trade associations, or other sources.

Review catalogs and other generally available product literature published by manufacturers, distributors, and dealers or that are available online.

Conduct interchange meetings to involve potential offerors early in the acquisition process.

5. The following information needs to be obtained during the market research:

What is the size and status of each source found? (see FAR Part 19) http://www.sba.gov/size/ or http://www.bpn.gov)

Name and Contact Information Size Business Type

VA Socioeconomic Goals FY11 Goal

Small business 33.5%

Small disadvantaged business 5.0%

Woman-owned small business 5.0%

VOSB 12%

SDVOSB 10.0%

HubZone small business 3.0%


http://www.bpn.gov/

http://www.sba.gov/size/

The following listing is the required order of precedence for consideration of sources. Agencies shall satisfy requirements for supplies and services from or through the sources and publications listed below in descending order of priority. Your market research documentation shall include affirmatives or negatives by considering each of the following in the order prescribed:

Supplies Agency inventories Excess from other agencies Federal Prison Industries, Inc. Committee for Purchase from People Who Are Blind or Severely Disabled Wholesale federal supply sources Mandatory Federal Supply Schedules Optional Federal Supply Schedules Commercial sources

Services Committee for Purchase from People Who Are Blind or Severely Disabled Mandatory Federal Supply Schedules Optional Federal Supply Schedules Federal Prison Industries, Inc.

Agency Requirements: VA has several agency preferences that must be considered when conducting market research.

The Veterans First Contracting Program, which authorizes a unique “Veterans First” approach specific to VA contracting. This approach changes the priorities for contracting preferences within VA, placing SDVOSBs and VOSBs first and second, respectively, in satisfying VA’s acquisition requirements.

The Veterans Technology Services (VETS) GWACs are small business set-aside contracts for SDVOSB technology firms and are in accordance with the VA Memorandum dated 26 Mar 2007. Use of the VETS GWACs is VA’s preferred source for VA Information Technology (IT) service contracts.

The National Aeronautics and Space Administration (NASA) SEWP GWACs is VA’s mandatory vehicle for hardware/software IT purchases.

However, if VA has a requirement for a software product that is provided by a vendor that is covered by the GSA SmartBUY, we would have to use the SmartBUY contract vehicle to make that purchase.


6. The following was determined as a result of the market research:

The government's need may be met by a type of item or service customarily available in the commercial marketplace that would meet the definition of a commercial item at FAR Subpart 2.1. The type(s) of items are:

Items of a type customarily available in the commercial marketplace

Items of a type customarily available in the commercial marketplace with modifications

Items used exclusively for governmental purposes

The CO shall solicit and award any resultant contract using the policies and procedures in FAR Part 12.

Market research indicates commercial or non-developmental items might not be available to satisfy agency needs. The need shall then be reevaluated in accordance with 10.001(a) (3) (ii) and determine whether the need can be restated to permit commercial or non-developmental items to satisfy the agency's needs.

Market research indicates that the government's need cannot be met by a type of item or service customarily available in the marketplace.

Market research indicates that a bundled contract is in the best interest of the government, and the award is not likely to be to a small business concern. Consult with the local Small Business Administration (SBA) Procurement Center Representative at least 30 days before the release of the solicitation or 30 days prior to placing an order without a solicitation, notify any affected incumbent small business concerns of the government’s intention to bundle the requirements, and notify any affected incumbent small business concerns of how the concerns may contact the appropriate SBA representative.


Helpful Hints for Market ResearchDO DON’T

When you call a contractor, PLEASE make sure you inform the contractor that you are conducting market research only and are not calling to request a formal quotation, proposal, or bid; only warranted contracting officials can solicit quotes on behalf of the government

If you call contractors to review available products, ask for copies of literature and submit them to the CO

If you call a contractor who states that it has an existing contract (such as a GSA contract), please verify that the products you are trying to find are on the existing contract; contractors do not necessarily sell all of their products on their existing contracts

Provide the same information about the prospective requirement to each contractor queried in market research

Make sure that the resulting requirement is not restrictive to one contractor unless you find that one contractor is the only source that can provide the items; write a justification and approval for other than full and open competition J&A and submit it to the CO

Please describe requirements to contractors in the terms of functionality versus brand name; this is required by law in FAR Part 11 (http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm)

In accordance with FAR 6.302-1(c), an acquisition that uses a brand-name description to one manufacturer does not provide for full and open competition, and a justification is required that indicates the use of such descriptions in the acquisition is essential to the government’s requirements, thereby precluding consideration of a product manufactured by another company

However, please note that brand-name or equal descriptions, and other purchase descriptions that permit prospective contractors to offer products other than those specifically referenced by brand name, provide for full and open competition and do not require justifications and approvals to support their use; identify the salient characteristics of the brand-name item you are interested in and use them in your market research as well as submit them with your acquisition package

Don’t accept a product sample or demo without coordinating with a CO

Don’t request formal quotations, proposals, or bids from contractors; only a CO has the authority to issue solicitations to contractors

Don’t rely on the word of a contractor that it is the only source; verify this through market research—a sources sought synopsis will help you justify a sole source procurement

Signature Date


http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm

B. Acquisition Plan Contents7.105 Contents of Written Acquisition Plans (FAR Part 7)In order to facilitate attainment of the acquisition objectives, the plan must identify those milestones at which decisions should be made (see paragraph (b)(18) of this section). The plan must address all the 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. In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures. Acquisition Plans for service contracts or orders must describe the strategies for implementing performance-based contracting methods, or must provide a rationale for not using those methods (see FAR Subpart 37.6).

(a) Acquisition background and objectives:

(1) Strategic Statement of Need. Introduce the plan by a brief statement of need. Summarize the technical and contractual history of the acquisition. Discuss feasible acquisition alternatives, the impact of prior acquisitions on those alternatives, and any related in-house effort.

(2) Applicable conditions. State all significant conditions affecting the acquisition, such as:

(i) Requirements for compatibility with existing or future systems or programs

(ii) Any known cost, schedule, and capability or performance constraints

(3) Cost. Set forth the established cost goals for the acquisition and the rationale supporting them, and discuss related cost concepts to be employed, including, as appropriate, the following items:

(i) Life cycle cost. Discuss how life cycle cost will be considered. If it is not used, explain why. If appropriate, discuss the cost model used to develop life cycle cost estimates.

(ii) Design to cost. Describe the design to cost objective(s) and underlying assumptions, including the rationale for quantity, learning curve, and economic adjustment factors. Describe how objectives are to be applied, tracked, and enforced. Indicate specific related solicitation and contractual requirements to be imposed.

(iii) Application of should cost. Describe the application of should-cost analysis to the acquisition (see FAR Subpart 15.407-4).


(4) Capability or performance. Specify the required capabilities or performance characteristics of the supplies or the performance standards of the services being acquired, and state how they are related to the need.

(5) Delivery or performance-period requirements. Describe the basis for establishing delivery or performance-period requirements (see FAR Subpart 11.4). Explain and provide reasons for any urgency if it results in concurrency of development and production or constitutes justification for not providing for full and open competition.

(6) Trade-offs. Discuss the expected consequences of trade-offs among the various cost, capability or performance, and schedule goals.

(7) Risks. Discuss technical, cost, and schedule risks and describe what efforts are planned or underway to reduce risk and the consequences of failure to achieve goals. If concurrency of development and production is planned, discuss its effects on cost and schedule risks.

(8) Acquisition streamlining. If specifically designated by the requiring agency as a program subject to acquisition streamlining, discuss plans and procedures to:

(i) Encourage industry participation by using draft solicitations, presolicitation conferences, and other means of stimulating industry involvement during design and development in recommending the most appropriate application and tailoring of contract requirements

(ii) Select and tailor only the necessary and cost-effective requirements

(iii) State the time frame for identifying which of those specifications and standards, originally provided for guidance only, shall become mandatory

(b) Plan of action

(1) Sources. Indicate the prospective sources of supplies or services that can meet the need. Consider required sources of supplies or services (see FAR Part 8) and sources identifiable through databases including the government-wide database of contracts and other procurement instruments intended for use by multiple agencies available at www.contractdirectory.gov. Include consideration of small business, VOSB, SDVOSB, HUBZone small business, small disadvantaged business, and women-owned small business concerns (see FAR Part 19), and the impact of any bundling that might affect their participation in the acquisition (see FAR Subpart 7.107 and 15 U.S.C. 644(e)). When the proposed acquisition strategy involves bundling, identify the incumbent contractors and contracts affected by the bundling. Address the extent and results of the market research and indicate their impact on the various elements of the plan (see FAR Part 10).


http://www.contractdirectory.gov/

(2) Competition.

(i) Describe how competition will be sought, promoted, and sustained throughout the course of the acquisition. If full and open competition is not contemplated, cite the authority in 6.302, discuss the basis for the application of that authority, identify the source(s), and discuss why full and open competition cannot be obtained.

(ii) Identify the major components or subsystems. Discuss component breakout plans relative to these major components or subsystems. Describe how competition will be sought, promoted, and sustained for these components or subsystems.

(iii) Describe how competition will be sought, promoted, and sustained for spares and repair parts. Identify the key logistic milestones, such as technical data delivery schedules and acquisition method coding conferences that affect competition.

(iv) When effective subcontract competition is both feasible and desirable, describe how such subcontract competition will be sought, promoted, and sustained throughout the course of the acquisition. Identify any known barriers to increasing subcontract competition and address how to overcome them.

(3) 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 (see FAR Subpart 15.3).

(4) Acquisition considerations. (i) For each contract contemplated, discuss contract type selection (see FAR Part 16); use of multiyear contracting, options, or other special contracting methods (see FAR Part 17); any special clauses, special solicitation provisions, or FAR deviations required (see FAR Subpart 1.4); whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase (see FAR Subpart 7.4) and why; and any other contracting considerations. Provide rationale if a performance- based contract will not be used, or if a performance-based contract for services is contemplated on other than a Firm-Fixed-Price basis (see FAR Subparts 37.102(a) and 16.505(a) (3)).

(ii) For each order contemplated, discuss:

(A) For IT acquisitions, how the capital planning and investment control requirements of 40 U.S.C. 1422 and OMB (Office of Management and Budget) Circular A-130 will be met (see 7.103(t) and FAR Part 39)


(B) Why this action benefits the government, such as when:

(1) The agency can accomplish its mission more efficiently and effectively (e.g., take advantage of the servicing agency’s specialized expertise or gain access to contractors with needed expertise)

(2) Ordering through an indefinite delivery contract facilitates access to small business concerns, including small disadvantaged business concerns, 8(a) contractors, women-owned small business concerns, HUBZone small business concerns, VOSB concerns, or SDVOSB concerns.

(5) 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 FAR Subpart 32.7).

(6) Product or service descriptions. Explain the choice of product or service description types (including performance-based contracting descriptions) to be used in the acquisition.

(7) 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 FAR Subpart 11.6).

(8) Contractor versus government performance. Address the consideration given to OMB Circular No. A-76 (see FAR Subpart 7.3).

(9) Inherently governmental functions. Address the consideration given to the Office of Federal Procurement Policy (OFPP) Policy Letter 92-1 (see FAR Subpart 7.5). This policy has been rescinded.

(10) Management information requirements. Discuss, as appropriate, what management system will be used by the government to monitor the contractor’s effort.

(11) Make or buy. Discuss any consideration given to make-or-buy programs (see FAR Subpart15.407-2).

(12) 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.


(13) Logistics considerations. Describe:

(i) The assumptions determining contractor or agency support, both initially and over the life of the acquisition, including consideration of contractor or agency maintenance and servicing (see FAR Subpart 7.3) and distribution of commercial items

(ii) The reliability, maintainability, and quality assurance requirements, including any planned use of warranties (see FAR Part 46)

(iii) The requirements for contractor data (including repurchase data) and data rights, their estimated cost, and the use to be made of the data (see FAR Part 27)

(iv) Standardization concepts, including, in accordance with agency procedures, the necessity to designate technical equipment as “standard” so that future purchases of the equipment can be made from the same manufacturing source

(14) Government-furnished property. Indicate any property to be furnished to contractors, including material and facilities, and discuss any associated considerations, such as its availability or the schedule for its acquisition (see FAR Part 45).

(15) Government-furnished information. Discuss any government information, such as manuals, drawings, and test data, to be provided to prospective offerors and contractors.

(16) Environmental and energy conservation objectives. Discuss all applicable environmental and energy conservation objectives associated with the acquisition (see FAR Part 23), the applicability of an environmental assessment or environmental impact statement (see Code of Federal Regulations (CFR) 40 CFR 1502), the proposed resolution of environmental issues, and any environmentally related requirements to be included in solicitations and contracts.

(17) Security considerations. For acquisitions dealing with classified matters, discuss how adequate security will be established, maintained, and monitored (see FAR Subpart 4.4).

(18) 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.

(19) Other considerations. Discuss, as applicable, standardization concepts, the industrial readiness program, the Defense Production Act, the Occupational Safety and Health Act, foreign sales implications, and any other matters germane to the plan not covered elsewhere.


(20) Milestones for the acquisition cycle. Address the following steps and any others appropriate:

Acquisition Plan approval

Statement of work

Specifications

Data requirements

Completion of acquisition package preparation

Purchase request

Justification and approval for other than full and open competition where applicable and/or any required D&F approval

Issuance of synopsis

Issuance of solicitation

Evaluation of proposals, audits, and field reports

Beginning and completion of negotiations

Contract preparation, review, and clearance

Contract award

(21) Identification of participants in Acquisition Plan preparation. List the individuals who participated in preparing the Acquisition Plan, giving contact information for each.


C. Acquisition Plan TemplateA template based on this guidance can be found in the templates provided in the online Enterprise Program/Project Management Training Model (EP/PMM) toolkit.


D. Acquisition ProcessThe Acquisition Process consists of five phases.

Planning: events in this phase are designed to clearly establish the requirement, the potential sources, and the requirement’s acquisition cost, and to create the required documents to enable the solicitation to proceed according to relevant laws and regulations. The outcome of this phase is a complete and proper acquisition package.

Solicitation: events in this phase proceed according to established procedures for ensuring fair due process according to the government’s needs and within applicable policies, regulations, and federal law. The outcome of this phase is the receipt of offers from interested parties that meet the stated requirements within the time allowed by the solicitation notice.

Evaluation: events in this phase are focused on evaluating the compliant offers received in accordance with the Acquisition Plan and outlined in the solicitation


notice. The outcome of this phase is the selection of the offer that best meets the acquisition objectives and the basis for award.

Award: events in this phase validate the selection and focus on finalizing the contractual terms and conditions to the mutual satisfaction of both parties. Notification of award is then sent to all other parties as required. The outcome of this phase is a signed contract and both parties being able to begin work.

Administration: events in this phase are centered on ensuring that the performance of the contractor, and the government, are in accordance with the contract and are satisfactory in meeting the acquisition objectives. The outcome of this phase is the successful accomplishment of the acquisition objectives.


E. Acquisition Package ChecklistItem Required Completed

2237 Always

VA Form 2268> $100K< $100K if not using small business

VA HANDBOOK 6500.6 Appendix A:Checklist for information security in the Initiation phase [Signed by PM and ISO] Always

Statement of Work (SOW) or Statement of Objectives (SOO) Always

Defines need and expected outcome

Defines discrete tasks/deliverables or objectives with measures

Defines place of performance

Defines timelines for each task/deliverable and place/method of delivery

Clearly identifies base and option period(s)

Clearly identifies optional item(s) (if applicable)

Defines delivery/ packaging requirements (if applicable)

Defines Inspection and acceptance requirements (if applicable)

Identifies proposed COR

Identifies GFE and GFI, and when GFE/GFI will be provided

Defines contractor personnel qualification requirements (if any)

Defines key contractor qualification requirements (if applicable)

Defines labor categories (if applicable)

Defines contractor personnel security requirements

Defines IT security requirements (if applicable—see Checklist)

Market Research Always

List all sources capable of performing

Recommend contract vehicle

Summarize sources/vehicles determined unacceptable and why


Item Required Completed

Consider potential sources by socioeconomic categories

IGCE Always

Evaluation criteria Always

COR certificates Always

Acquisition Plan FormalInformal

>$5M <$5M

Justification for Other Than Full and Open Competition

Contract type (justification for other than Firm-Fixed Price)

Estimated price/cost goal

Prospective sources

GSA or GWAC vehicle

Why not suitable for SDVOSB/VOSB or Small Business

If not performance based, documentation is required to justify reason


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