14 FAH-2 H-320
ACQUISITION PLANNING
(CT:COR-34; 06-02-2015)
(Office of Origin: A/OPE)
14 FAH-2 H-321 GENERAL
(CT:COR-34; 06-02-2015)
a. Acquisition planning is the key to effective use of public funds and the economical accomplishment of program objectives. The Department seeks to ensure this concept by mandating annual preliminary forecast plans (PFP) and encouraging early and open communications with representatives of the acquisition office before the submission of formal requests for contract services. The Code of Federal Regulations (CFR) 48 CFR 7.102 and Department of State Acquisition Regulation (DOSAR) 48 CFR 607.102 prescribe policy for acquisition planning.
b. Acquisition planning begins before the fiscal year has begun in order to provide improved scheduling of actions, increased control of fourth-quarter obligations, and opportunities for consolidating requirements. Failure to schedule the acquisition workload may result in an inordinate number of contract awards being made in the closing months or weeks of the fiscal year, which places a severe burden on the requirements office and acquisition office personnel.
14 FAH-2 H-322 ADVANCE ACQUISITION PLANNING AND PRELIMINARY FORECAST PLANS (PFPS)
(CT:COR-34; 06-02-2015)
a. An important element in acquisition planning is the advance acquisition planning process, which is initiated with a PFP. All offices must submit a PFP for any acquisition with an estimated value exceeding the simplified acquisition threshold. See 48 CFR 2.101 for the definition of the simplified acquisition threshold or consult with your contract specialist or contracting officer. The PFP is submitted to the Office of Small and Disadvantaged Business Utilization (OSDBU) for consolidation into a Department-wide forecast.
b. Advanced procurement planning provides an opportunity to increase small business participation, enhance competition, conduct effective procurements, secure good pricing, and plan adequately for contract award and administration.
14 FAH-2 H-323 ACQUISITION LEADTIME
(CT:COR-34; 06-02-2015)
a. The acquisition cycle begins with advance acquisition planning and initiation of the procurement request and ends with the acceptance of the supplies or services and final payment to the contractor. The contracting officer’s representative (COR) should initiate the procurement request package as far in advance of required delivery or the commencement of services as possible to allow for contracting "lead time.”
b. The contracting office must have adequate time for the performance of the many steps involved in the contracting process. It takes time to process a procurement request to the point of issuing a solicitation; for offerors to prepare and submit bids/proposals; for evaluation and subsequent negotiation; and for awarding the contract. Many contracting offices publish dates by which the procurement request must be received in order to allow for award by the end of the fiscal year. These dates are established to allow for adequate lead time.
14 FAH-2 H-324 MARKET RESEARCH
(CT:COR-34; 06-02-2015)
a. Market research is the process used for collecting and analyzing information about capabilities within the market to satisfy agency needs.
b. Market research is required to:
(1) Promote full and open competition;
(2) Ensure that the U.S. Government satisfies its needs in a cost-effective manner; and
(3) Determine whether commercial items are available to meet the U.S. Government’s needs.
c. Market research must be conducted in two separate stages:
(1) By the requirements office before new requirements documents are developed; and
(2) By the acquisition office before offers are solicited.
14 FAH-2 H-324.1 Collecting Information
(CT:COR-34; 06-02-2015)
a. The extent of market research and analysis will vary depending on the urgency, value, and complexity of the proposed acquisition. Some of the types of information to collect are:
(1) Availability of supplies/services suitable as is, or with minor modifications, for meeting the need;
(2) Availability of companies to perform the work required;
(3) Terms and conditions and warranty practices under which commercial sales of the supplies/services are made;
(4) Requirements of controlling laws and regulations;
(5) Availability of items that contain recovered materials and items that are energy efficient;
(6) Distribution and support capabilities of potential suppliers, including alternative arrangements; and
(7) Whether the item is commercial or not.
b. Some potential sources of market information include, but are not limited to:
(1) Technical personnel, commodity specialists, price analysts, and other in-house experts on the supply or service and its market;
(2) The Internet;
(3) Catalogs or periodicals;
(4) Industry buyers of the same or similar supplies and services;
(5) Federal Business Opportunities (FedBizOpps) “sources sought” notices or local ads and surveys of potential suppliers; and
(6) Trade and professional associations.
14 FAH-2 H-324.2 Application of the Information
(CT:COR-34; 06-02-2015)
a. Market information may be used in all pre-award duties, including (but not limited to):
(1) Reviewing the proposed specification or statement of work to ensure that it encompasses the acceptable supplies or services, if any, in the market;
(2) Determining when to buy;
(3) Establishing delivery schedules that are realistic in terms of market conditions and practices;
(4) Suggesting sources for the solicitation mailing list (not a list to limit competition);
(5) Determining whether to purchase or lease;
(6) Identifying quantity breaks;
(7) Determining whether sources capable of satisfying the requirements exist;
(8) Determining whether commercial items are available;
(9) Determining the extent to which commercial items could be incorporated at the component level; and
(10) Determining the practices of firms engaged in producing, distributing, and supporting commercial items, such as terms for warranties, buyer financing, maintenance, packaging, and marking.
b. Although market research is required before new requirements documents are developed, the COR should be careful not to solicit (or be perceived as soliciting) a price quotation or proposal for the actual supplies or services to be acquired. Therefore, before initiating market research, the COR is encouraged to contact acquisition personnel to coordinate the scope of their market research. Not only is this involvement critical to the acquisition process, but it could preclude the possibility of the COR taking an action that causes a contractor to incur costs, or develop unreasonable expectations of receiving a contract award, especially since the U.S. Government may be held liable for those costs.
c. The COR must inform vendors of the market research procedures used by the U.S. Government (reference FAR 48 CFR 15.201 and 48 CFR 10.000). In addition, vendors should be advised that the U.S. Government’s requirements discussed as part of market research are subject to change, and any technical exchange of information at this time cannot be considered in the subsequent U.S. Government’s technical evaluation.
14 FAH-2 H-325 THROUGH H-329 UNASSIGNED