Phase 1 -- Acquisition Planning Introduction Acquisition Planning is the process of identifying and describing requirements and determining the best method for meeting those requirements. An important step in acquisition planning is identification of the acquisition team members. For a major acquisition, participants normally include the Technical Personnel, Contracting Officer, logisticians, and financial, legal, and other experts. However, this team can be tailored to meet specific program needs. Acquisition planning focuses on the business and technical management approaches designed to achieve program objectives within specified resource constraints, and the contracting strategies necessary for implementation. Contracting processes and associated focus areas addressed are: Determination and Analysis of Need Determination and Analysis of Need is the first step in the acquisition planning process. It focuses on the forecasting and planning of the acquisition requirements, as well as developing and updating Acquisition Plans, and Justifications and Approvals, as required. One consideration in Determination and Analysis of Need Note: The Bona Fide Need Rule. is the Bona Fide Need Rule. In general, the Bona Fide Need Rule means simply that the requirement is necessary in the existing fiscal year, and cannot legitimately be procured in another fiscal year. This is often an issue at the end of a fiscal year when some requiring officials may want to funds. The Bona Fide Need Rule eliminates unnecessary “burn” spending. A common application of the rule is that an appropriation is not available for the needs of a future year. For example: As the end of a fiscal year approaches, an agency purchases a truckload of pencils when it is clear that, based on current usage, it already has in stock enough pencils to last several years. It appears that the agency is merely trying to use up its appropriation before it expires, and the purchase may violate the Bona Fide Need Rule. This does not mean that an agency may purchase only those supplies that it will actually use during the fiscal year. Agencies normally maintain inventories of common-use items. The Bona Fide Need Rule does not prevent maintaining a legitimate inventory at reasonable and historical levels, the being to maintain the inventory level so as to avoid disruption of “need” operations. The problem arises when the inventory crosses the line from reasonable to excessive. The following tables show contracting functions and Requiring Activity functions for these activities: Forecasting of Requirements
Phase 1 -- Acquisition Planning Introduction Acquisition Planning is the process of identifying and describing requirements and determining the best method for meeting those requirements. An important step in acquisition planning is identification of the acquisition team members. For a major acquisition, participants normally include the Technical Personnel, Contracting Officer, logisticians, and financial, legal, and other experts. However, this team can be tailored to meet specific program needs. Acquisition planning focuses on the business and technical management approaches designed to achieve program objectives within specified resource constraints, and the contracting strategies necessary for implementation. Contracting processes and associated focus areas addressed are: Determination and Analysis of Need Determination and Analysis of Need is the first step in the acquisition planning process. It focuses on the forecasting and planning of the acquisition requirements, as well as developing and updating Acquisition Plans, and Justifications and Approvals, as required. Note: The Bona Fide Need Rule. One consideration in Determination and Analysis of Need is the Bona Fide Need Rule. In general, the Bona Fide Need Rule means simply that the requirement is necessary in the existing fiscal year, and cannot legitimately be procured in another fiscal year. This is often an issue at the end of a fiscal year when some requiring officials may want to “burn” funds. The Bona Fide Need Rule eliminates unnecessary spending. A common application of the rule is that an appropriation is not available for the needs of a future year. For example: As the end of a fiscal year approaches, an agency purchases a truckload of pencils when it is clear that, based on current usage, it already has in stock enough pencils to last several years. It appears that the agency is merely trying to use up its appropriation before it expires, and the purchase may violate the Bona Fide Need Rule. This does not mean that an agency may purchase only those supplies that it will actually use during the fiscal year. Agencies normally maintain inventories of common-use items. The Bona Fide Need Rule does not prevent maintaining a legitimate inventory at reasonable and historical levels, the “need” being to maintain the inventory level so as to avoid disruption of operations. The problem arises when the inventory crosses the line from reasonable to excessive. The following tables show contracting functions and Requiring Activity functions for these activities: Forecasting of Requirements
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