Acquisition System, and in Department of Defense Instruction Number 5000.02, Operation of the Defense Acquisition System and in the Defense Acquisition Guidebook. Factors to Consider During Acquisition Strategy Development and Acquisition Planning The Federal Acquisition Regulation emphasizes the importance of acquisition planning in to promote the acquisition of commercial items to the maximum extent practicable. As the process to define requirements continues, other factors such as those listed below should be considered; specifically their impact, on life-cycle cost. These factors should be appropriately addressed in the acquisition planning stage. Supplier capabilities Logistics support Product availability Upgrade plans Customary warranty Reliability assurances Data rights Hardware and software interfaces needed to encourage seamless integration of technology upgrades In the requirements and acquisition strategy development process, the Government should not require the contractor to provide detailed design data for commercial This strategy encourages commercial contractors that are otherwise reluctant to do business with the Government, thereby increasing access to innovative solutions available through a larger market of opportunity. To provide the utmost value to both our warfighters and the taxpayers we must define more coordinated and strategic approaches to the acquisition of commercial items. The Office of Management and Budget’s memorandum dated May 20, 2005, describes strategic sourcing as the “collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.”
Pattern of Demand Is there a cyclical pattern to supply and demand? Would allowing delivery to be made at a later date result in lower prices than an immediate award? Or would it be better to stock up now at today's prices (if there is a bona fide need)? Other Market Forces Expected to Affect Contract Price What forces might drive up prices in the near future? Strikes? Labor shortages? Subcontractor bottlenecks? Energy shortages? Other raw material shortages? Legislative action? What forces might lead the Government to expect lower prices in the future? Rising unemployment? Industry downturn? Pricing Strategies & Incentives What are the pricing strategies of firms in the commercial market? What discounts are available for quantity buys? What types of incentives are used by firms in the commercial market? Sources of Supplies or Services firms in the market are the most likely to submit offers to a Government solicitation? Which are the least likely, and why? Supply or Service Characteristics What features distinguish one service or item of supply from another? Which commercial supplies or services match most closely the Government requirements document (as it currently reads in the purchase request)? What is the apparent trade-off between features and price? Delivery/ Performance Terms What are the current distribution channels? What are current transportation costs (if available and applicable)? What are the commercial lead-times? Ownership are the commercial warranty terms and conditions (if any)? What are the historical repair costs for each item? What are the historical maintenance costs for each item? What are the lifecycle costs (possible energy cost, costs of oil, toner, paper requirements, gasoline, electricity, etc.)?