Acquisition Management
Authors: Reifer Donald J. , Marciniak John J. 
Published: February 2015

Acquisition managementis the management process of acquiring, usually via a contract vehicle, custom software systems. Although a custom system may contain commercial software packages, it is typically built, or developed, to satisfy unique customer requirements. Such requirements usually form the basis of the agreement, e.g., contract, between the acquirer and the provider for the acquisition effort.

Custom software solutions may be developed either under contract from a provider or internally by an organization's programming department. There are many reasons to contact for a software system. A written agreement or contract is used as the basis of acquisition. The developer, contractor, or provider takes a contract from the acquirer, user, or buyer to deliver the system that satisfies specified functional and performance requirements for an agreed‐to cost and within an agreed‐to schedule. [Many terms are used for the acquirer (e.g., user, buyer). For simplicity purposes, the termacquireris used throughout the article. Likewise, many terms are used for theprovider(e.g., developer, vendor, contractor).] The process of arranging for and administering the agreement, whether a contact or other form, and managing the performance of the developer, is acquisition management.

Custom software comes in a variety of forms from stand‐alone systems that are totally composed of software, to systems that have appreciable hardware development. Typically, software acquisition management deals with the management of solutions where there is extensive software development. These solutions may range from those developed by the government for military, space, transportation, and other purposes, to commercial solutions for banks, insurance, and a variety of other institutions. No matter the nature of the system, the acquisition of custom software systems follow the same basic acquisition management tenets.

Software acquisition management activities include planning, contracting, budgeting, evaluating performance, and providing for sustaining support for evolution and growth of the system. The three typical organizations that are involved in acquisition management include the customer or user of the system, the contracting agency or acquirer of the system, and the provider, sometimes referred to as the “third party.” Depending on the scope of the effort, there may be many people and contractors involved in developing the solution.

The typical relationship among the software acquisition management, project management, and software engineering organizations involved in developing the solution. While the software engineering organization concentrates on building the software product, the project management group focuses its attention on managing the engineering development. As shown, there is an overlap between software acquisition management and project management. There are people in each activity who participate in both functions. For example, the software project manager also has acquisition management responsibilities because he or she is held accountable for meeting contract requirements and must interface with the acquirer's management organization.