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Acquisition PlanningNCMA

Laurie CarpentierESC Acquisition Center of Excellence

Date: 10 Mar 10

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Overview

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• Acquisition Strategy Planning• Defense Acquisition Framework• Overarching Acquisition Considerations• Tailoring Acquisition Considerations to Specific

Program Needs• Acquisition Consideration Issues• Acquisition Strategy Panels / Approvals• Challenges to Acquisition Strategy• Keys to Successful Acquisition Planning• Acquisition Planning References

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Acquisition Strategy Planning – Why?

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• An acquisition strategy (AS) is a high-level business and technical management approach designed to achieve program objectives within specified resource constraints. It is the framework for planning, organizing, staffing, controlling, and leading a program. (DSMC Acq Strategy Guide)

– AS encompasses entire life cycle of a program (DoDI 5000.02 framework)

– AS required for entry to Milestone B and subsequent entry milestones

• Tailored to program, documented via LCMP, AS / requirements conveyed in contract instruments

• “Agencies shall perform acquisition planning… the purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner.” (FAR 7.102)

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Acquisition Strategy Planning – What?

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• RESULT of extensive planning and preparation and thorough understanding of – Specific acquisition program AND

– General defense / agency acquisition environments • REQUIRES collaboration between

– Senior Acquisition Official (SAE), Milestone Decision Authority (MDA) (or MDA-equivalent for non-ACAT programs) and program manager and functional communities engaged in and supporting the acquisition

GENERAL DEFENSE / AGENCY ACQUISITION REFERENCES DoD Directive 5000.01 - Defense Acquisition System DoD Instruction 5000.02 - Operation of the Defense Acquisition System Defense Acquisition Guidebook FAR-- Part 7, DFARS-- Part 207, AFFARS and IG-- 5307, AFMCFARS and IG-- 5307

NO COOKIE-CUTTER

APPROACH

LEARN WHERE

TO GO FOR HELP

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Defense Acquisition Management Framework

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GET TO KNOW THE ACQUISITION LIFE CYCLE

Acq Strategy Required Here and subsequent entry milestones

IOCBA

Technology Opportunities & Resources

MaterielSolutionAnalysis

FRPDecisionReview

FOC

Materiel DevelopmentDecision

User Needs

PDR CDR

CDD CPD

ICD

AoA

Pre-Systems Acquisition Systems Acquisition Sustainment

Post CDRAssessment

PDR

Technology Development

Production & Deployment

Operations & Support

Engineering and Manufacturing Development

C

or

Post PDRAssessment

(DoD Instruction 5000.02)

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Overarching Acquisition Strategy Considerations …

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… RESEARCH AND KNOW ….

Overarching Acquisition

StrategyConsiderations

… Consistent with statute and regulation, the program manager should tailor the

acquisition strategy and required information to the specific program needs.

Acquisition ApproachModular Open Systems ApproachBest Practices

Business Considerations Product Support

Capability Needs Summary Program Structure

Environment, Safety, Occupational Health

Relief, Exemption, and Waiver

Human Systems IntegrationResearch and Technology ProtectionInformation Assurance

Information Technology Resource Management

Integrated Test and Evaluation

Risk Management

Systems EngineeringInteroperability

USE ALL AVAILABLE RESOURCES

Excerpts from Acquisition Deskbook

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… Tailored to Program-Specific Needs

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Market Research Findings

Risk Workshop Results

Program Objectives

Direction,Funding

Competitive or Sole Source?

FAR Part 12 or Part 15?

Contract Form and Type?

Incentives?

Develop Acq. Strategy

EarlyIndustry

Involvement…

Technology

Transition

EvolutionaryAcq.

Collaborative

RequirementsRobust Sys Eng

Expectation Management

Acquisition Strategy Foundations

INPUTS …Iterative process to determine SOUND strategy for specific program…

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… Tailored to Program-Specific Needs(cont’d)

Early Collaboration is Key

• Development of an Acquisition Strategy can be very COMPLEX

• Don’t get stuck going in circles… • Get the right people involved

early in the requirement

identification / definition stages• IPTs must adequately address all regulatory

requirements and relevant acquisition considerations in developing SOUND Acquisition Strategies

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• Teams bring programs forward for Acquisition Strategy Approval without well defined requirements or sound acquisition strategy – Acquisition strategy not well thought out – Briefer(s) can’t answer questions when asked – Technology maturity level – strategy doesn’t address – Schedule charts– teams don’t seem to understand schedule fully;

can’t answer basic questions on realism or achievability – Future competition not addressed– Next increment / future increments poorly addressed

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Acquisition Considerations - Issues

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Acquisition Considerations - Issues (cont’d)

– Source selection evaluation criteria NOT tied to

significant risks discovered• Identifying significant risk via risk assessment activities, but

then NOT evaluating them during source selection to ensure

offeror(s) has an adequate strategy to mitigate the risk during

contract performance

– Source selection evaluation criteria established that

are NOT key discriminators in best-value decision

– Source Selection– strategy does not adequately

explain what team plans to do

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Acquisition Considerations – Issues (cont’d)

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– Risks poorly addressed; teams don’t understand risk mitigation

– Data Mgt and Technical Data Rights not addressed– Contract type not adequately addressed

• Should fully address why the contract type is appropriate for the given strategy/risks

– Incentives– strategy does not address what they are, or why they will work

Risk Management Identification of Risk Mitigation of Risk Flow of biggest risks shape acquisition / business strategy to be adopted these

get conveyed in Section L, Instructions to Offerors Section M, Evaluation Criteria

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Acquisition Considerations – Issues (cont’d)

• Acquisition Strategy documentation weak / missing– Roles of Players– Small Business Strategy– MOASP Requirement– Bundling / Consolidation Decision Justification– Performance based (SOO vs SOW)– Consideration of GFP / GFI– Reliability, maintainability, quality assurance

• Baseline management – technical & product• Use of warranties• Specifications and configuration approach

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Acquisition Considerations – Issues (cont’d)

• Government vs Contractor Support Analysis– Need business case to support determination– Competition considerations: repairs and supply

• Open Technology Consideration• Organizational conflict of interest (OCI) concerns

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Acquisition Strategy Panels

AFFARS 5307.104-90(a)-- ASPs(1) ASPs should take place as early as possible in the acquisition

planning process to develop a systematic and disciplined approach to achieve an efficient/effective acquisition. The ASP chairperson has the authority to waive the requirement for an ASP.

(2) The program manager, or the contracting officer if a program manager is not assigned, shall conduct an ASP for all ACAT programs, CSO acquisitions, and AFPEO/CM acquisitions.

(3) For Other Contracting acquisitions, Acquisition Strategy Panels (ASPs) shall be convened for all acquisitions requiring a formal/written Acquisition Plan (AP). The ASP chairperson may establish streamlined ASP procedures for acquisitions <$5.5M.

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ASP Best Practices

• Ideal Entrance Criteria for ASP– Firm Requirements– Official Direction– Approved Budget– Proposed Acquisition Strategy Defined– Program Schedule/Program Office Estimate complete– Coordinated acquisition strategy with cognizant small

business specialist– Draft LCMP prepared ready or near ready

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Solicitation Release

• AFFARS 5307.104 (S-90) (a): - Solicitation Release– (1) For non-space related ACAT programs, unless otherwise

authorized by the MDA, the contracting officer shall not release the formal solicitation until the MDA has approved the Acquisition Strategy/LCMP strategy in accordance with USD(AT&L) and Air Force guidance.

• AFFARS 5307.104 (S-90) (c): - Independent Review– (c) Independent Review. The Clearance Approval Authority

will conduct an independent review of the draft Acquisition Strategy Panel brief, or draft Acquisition Plan, or its equivalent in accordance with Mandatory Procedure MP5301.9001(b), Clearance – Multi-functional Independent Review.

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Challenges to Acquisition Strategy

• Changes in the Law • Data Management and Technical Data Rights• New Changes in Services PEO Acquisitions• Changing Trends in Strategies

– Types of Incentive Fee -- CPIF in lieu of CPAF– T&M to a minimum– Multiple Award vs Lead System Integrator (LSI)

• DO / TO > $10M can be protested• Single Award ID/IQ requires approval

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Keys to Successful Acquisition Strategy

• Know your requirement• Form an IPT early on

– All perspectives required to develop products– Defined needs for different disciplines– Strive for cohesive proactive team

• Early Involvement of ACE Office– Help develop documentation– Risk Assessment workshops / guidance – Mentor throughout the process– Offer advice from previous experiences

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Summary

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Acquisition and Business Strategy Considerations…

From this…

To this…

Is generally very COMPLEX!

Use all the available Acquisition Strategydevelopment resources

to derive a SOUND strategy

meeting Warfighter needs!