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Government Acquisition by a Federal Agency, Essay Example

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Words: 1876

Abstract

The objective of this work in writing is to assume that the writer is a contracting officer for a designated federal agency and further that this officer has been tasked to oversee the acquisition of a proprietary database program for a program office division in the agency. This work will additionally provide an explanation of how one would go about developing the statement of need and provide examples of the information required and the factors to be considered. As well, this work will assess the primary risk factors associated with this scenario and how these risks can be mitigated.

Requirements and Risk: Government Acquisition by A Federal Agency

Federal Acquisition Regulation (FAR)

The Federal Acquisition Regulation (FAR) is that which codifies and publishes uniform policies and procedures for executive agency acquisition. The Federal Acquisition Regulations System is comprised by the Federal Acquisition Regulation (FAR) stated to be the “primary document and agency acquisition regulations that implement or supplement the FAR.” (Office of Federal Procurement Policy, nd, p. 21) The stated vision for the Federal Acquisition System is “to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulfilling public policy objectives.”The Federal Acquisition System is stated to be designed with a focus on:

“… cost, quality, and timelines of the delivered product or service by, for example – (1) maximizing the use of commercial products and services; (2) using contracts with a track record of successful performance or who demonstrate a current ability to perform; and (3) promoting competition.” (Office of Federal Procurement Policy, nd, p.21)

Inaddition, the Federal Acquisition System will “minimize administrative operating costs, conduct business with integrity, fairness and openness, and fulfill public policy objectives.” (Office of Federal Procurement Policy, nd, p. 21) The rules and regulations pertaining to acquisition of software for federal agency operations is found in the Federal Acquisition Regulation (FAR) 39.000 which prescribes

“acquisition policies and procedures for use in acquiring: (a) information technology, including financial management systems, consistent with other parts of the regulation OMB Circular No. A-127 Financial Management Systems and OMB circular No. A-130 Management of Federal Information Resources; (b) information and information technology.” (Office of Federal Procurement Policy p. 22)

Requirements for Acquisition of Information Technology

In the development of an acquisition strategy, it is stated that contracting officers should give consideration to the rapidly shifting nature of information technology and that this can be accomplished through market research and the application of “technology refreshment techniques.” (Office of Federal Procurement Policy, nd, p. 929) When acquiring information technology it is stated that agencies are required to “include the appropriate information technology security policies and requirements, including use of common security configurations available fromthe National Institute of Standards and Technology’s website at: http://checklists.nist.gov.” (Office of Federal Procurement Policy, nd, p.929) I t is also required that acquisition of information technology initiatives that use Internet Protocol be examined and that the appropriate compliance requirement be included “in accordance with 11.002(g).” (Office of Federal Procurement Policy, nd, p.929)

Management of Risk

Management of risk is another issue that it is stated that before entering into a contract for information technology that the agency must “analyze risks, benefits and costs.”( Office of Federal Procurement Policy, nd, p. 929) Types of risk include such as:

(1) schedule risks;

(2) risk of technical obsolescence;

(3) cost risk;

(4) risk implicit in a particular contract type;

(5) technical feasibility;

(6) dependencies between a new project and other projects or systems;

(7) the number of simultaneous high risk projects to be monitored, funding availability; and program management risk. (Office of Federal Procurement Policy, nd, p. 929)

It is reported that appropriate techniques are needed for managing and mitigating risk during IT acquisition. Techniques are stated to include but not be limited to: (1) prudent project management;(2) use of modular contracting; thorough acquisition planning tied to budget planning by the program; (3) finance and contracting offices; (4) continuous collection nd evaluation at of risk-based assessment data; (5) prototyping prior to implementation; (6) post-implementation review to determine actual project cost; (7) benefits and returns; and (8) focusing on risks and returns using quantifiable measures. (Office of Federal Procurement Policy, nd, p. 929)

The Written Acquisition Plan

In order that the acquisition plan contains all the necessary components, the plan must “address all of the technical, business, management, and other factors that serve to guide the acquisition. The plans will vary in their specific content and this is dependent upon “…the nature 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 acquisition methods or must provide rationale for not using those methods.” (Office of Federal Procurement Policy, nd, p. 929)

Acquisition Background and Objectives

It is stated that the acquisition background and objectives include the following:

Statement of Need – this serves to introduce the plan and contains a brief statement of need which summarizes the technical and contractual acquisition history and discusses the feasible acquisition alternatives;
Applicable conditions – theses state all conditions that may significantly impact the acquisition including such as:

Compatibility requirements with systems or programs, both future and existing; and
Cost, scheduling, and capability or performance constraints, which are known.

Cost – This includes the cost goals for the acquisition initiative and the rationale that supports these cots as well as a discussion of related cost “concepts to be employed including as appropriate the following items:

Life-cycle cost;
Design to cost;
Application of should-cost;

Capability or performance – this specifies the required capabilities or the performance characteristics of the supplies or the performance standards of the services being acquired and state how they are related to the need;
Delivery or performance period requirements, which describe the basis for the establishment of delivery of performance-period requirements. It is necessary to provide an explanation based on reasons for any urgency if the result is “concurrently of development and productive that constitutes justification for not providing full and open competition.
Trade-offs – this involves a discussion of the consequences that are expected out of trade-offs including the various “cost capability or performance and schedule goals.
Risks – this involves a discussion of the “technical, cost, and schedule risks” and as ell provides a descriptions as to what efforts are planned or otherwise underway focused on risk reduction and the consequences should the goals not be achieved.
Acquisition Streamlining – In the event that the requiring agency designates a program subject to acquisition streamlining then the plan should discuss the procedures that will be used to:

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;
Select and tailor only the necessary and cost-effective requirements; and
State the timeframe for identifying which of those specifications and standards, originally provided for guidance only, shall become mandatory. (Office of Federal Procurement Policy, nd, p. 930)

Plan of Action

The plan of action includes addressing such as the following:

Sources – indicate the prospective sources of supplies or services that meet the need and consider the required or supplies or services and sources that can be identified through databases that are intended to be used by multiple agencies.
Competition – This involves providing a description of how the competition will be located, promoted as well as sustained during the acquisition. Also involved is the identification of the source or sources and discussion of why it is that full open competition is not possible. The major components and subsystems are identified and the breakout plans.
Source selection procedures – this discusses the procedures for source selection of the acquisition and includes the submission timing and the proposal evaluation.
Budgeting and funding including budget estimates and how they were derived explained as well as discussion the schedule by which funds will be obtained.
Product service description – contains an explanation for the choice of product or service. (Office of Federal Procurement Policy, nd, p.931)

There are other steps in this process, which include the priorities, allocations and allotments and a discussion of the contractor versus government performance. Inherently government functions must be addressed as well as must management information requirements be considered.

Security and Other Considerations

Security considerations also must be addressed for acquisitions that relate to classified matters. This involves the consideration of how security that is adequate will be “established, maintained and monitored. Also required are the following considerations:

Standardization concepts;
The industrial readiness program;
The Defense Production Act;
The Occupational Safety and Health Act;
Support Anti-terrorism by Fostering Effective Technologies Act of 2002 (SAFETY Act)
Foreign sales implications;
(vii) Special requirements for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission; and
Any other matters germane to the plan not covered elsewhere. (Office of Federal Procurement Policy, nd, p. 932)

Acquisition Milestones

Stated as milestones for the acquisition cycle are those as follows:

Acquisition plan approval.
Statement of work.
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; and
Beginning and completion of negotiations.
Contract preparation, review, and clearance.
Contract award. (Office of Federal Procurement Policy, nd, p. 933)

It is stated in a Memorandum concerning government agency software acquisition dated June 1^st 2004 that the Office of Management and Budget (OMB) in its Circulars a-11 and A-130 and the Federal Acquisition Regulation, guide agency information technology (IT) investment decisions” are policies that are technology and vendor neutral and that this is intentional. The memorandum states that agencies must give due consideration to the “total cost of ownership, including lifecycle maintenance costs, costs associated with risk issues, including security and privacy of data and the costs of ensuring security of the IT system itself.” (Evans and Burton, 2004, p.1) It is also related that since softwarelicensing requirements are legally complex and may well result in a direct impact to the operations of agencies, that procurement executives and program managers should discuss the software acquisitions with the General Counsel’s Office to make sure that all requirements are completely understoodprior to the procurement and use of the software. (Evans and Burton, 2004, p.1)

Summary and Conclusion

This work has thoroughly reviewed the information concerning the Federal Acquisition Regulations for acquiring software and other IT products for a government agency and has explained how one should go about making the statement of need for the purpose of the acquisition of a proprietary database program. Risk issues have been examined as well as other considerations for this acquisition.

References

Federal Acquisition Regulation (nd) OMB, Office of Federal Procurement Policy, Federal acquisition regulation, available at http://www.acquisition.gov/far/index.html

M-04-16, Software Acquisition (2004) Office of Management and Budget. 1 July, 2004. Retrieved from: http://www.whitehouse.gov/omb/memoranda_fy04_m04-16