Name
Institution
Course
Due Date
Acquisition Contract Management
Introduction
Acquisition contract management requires the conduct of a market research in order to arrive at the suitable approach to acquiring, dispensing as well as supporting supplies and services. Source selection is a procedure of deciding who acquires the award of a contract action. It can be a simple procedure of discovering the least priced goods, or be a structured procedure of deciding the best value.
Best value in the procurement process refers to an acquisition process, which results in the greatest benefit to a customer in accordance to the specific contract requirements. The attainment of greatest benefit to the customers occurs through the assessment and comparison of certain factors, as well as the offered price. The Best value acquisition process allows flexibility in the selection process through tradeoffs which the agency makes by evaluating the cost and non-cost factors with the intention of awarding the contract to a contractor who will provide the agency the best value of their money.
The source selection procedure entails of a few basic steps that result in an award to the best value offeror. In the private sector, these basic steps are left to the individual owner’s freedom of choice but for the government sector, there are certain procurement rules and regulations that follow throughout the procurement process. However, the basic procurement process framework is similar in both private and government sectors. Below I will discuss the steps followed in the best value source selection.
Discussion of Steps
Step 1
Knowing the customers and their needs
The first step in the best value source selection requires that individual contracting personnel meet with the customer with a view to getting to know the client(s) and understanding their individual needs and requirements. Getting to know the client in this case is essential in that it enables the contracting team to determine the customer’s current needs as given by ongoing contracts as well as any future acquisition requirements of the customer in question.
The process of getting to know the customer and their individual needs increases the contracting team’s knowledge about the organization mission and goals of the prospective customer and also their values, objectives and priorities. The process therefore enables the contracting personnel to provide relevant business advice and support as necessitated by the prevailing business environment as well as the requirements dictated by the contract specifications.
The adoption of best value procedures in this first step creates an enabling environment for the contracting personnel in which they are able to recommend procedures that aim at matching the individual customer requirements to the goals of the organization at the lowest cost possible. Examples of customer requirements in this case include essential physical characteristics of the end product as well as functions to be performed in the course of contract performance.
Step 2
Evaluation criteria
The second step of the best value source selection consists of determining criteria to evaluate the proposed solutions to the customer’s requirements. Evaluation criteria consist of a set of procedures used to determine with certainty any strengths and weaknesses in the proposals submitted by individual offerors, how their approaches facilitate the attainment of specific customer requirements as well as aid in distinguishing the proposals offered by the contractors. These evaluation criteria help in selecting the contractor with the capacity to provide greatest value to the government. Examples of evaluation criteria include such things as cost, quality, the past performance of the contractor, expertise, personnel qualifications among others.
The adoption of best value criteria in this step is highly essential in the overall contracting process as it provides the basis for competitive elimination among contractors in the process of acquisition. Further, it also reduces the work on the part of the customer as regards the selection of the contractor with the capacity to deliver according to the individual contract requirements.
Step 3
Understanding the market or industry capabilities
Market research in the acquisition process is highly essential to the contracting personnel as it provides them with relevant information regarding existing products and services as well as technology relating to the acquisition process. The process also aids the contracting team to determine and evaluate existing market risks, opportunities, threats as well as development capabilities within the specific market that have the potential to affect the acquisition process. It therefore provides the team with the relevant data useful in designing appropriate technical and operational policies with a view to facilitating the delivery of best value to the customer in question. Further, market research enables the contracting personnel to evaluate the potential contractors according to their adaptability to changing market conditions thus aiding the customer in the selection process. The adoption of best value therefore increases the level of competitiveness and efficiency associated with the acquisition process, thus creating an enabling environment for the selection of the best contractor.
Step 4
Understand the business environment
Understanding the business environment during the acquisition process is critical in that it increases awareness on the variety of factors capable of affecting the process of acquisition by the government. It includes an examination of factors within the contractor’s environment as well as those of the customer. Such factors include market conditions, political factors, the legal community, contract clauses, and sources of funding, apparent authority, and steps in the acquisition process as well as the internal organization for contract management among others.
Understanding the business environment enables the contracting team to determine how each of the factors within the business environment will influence the process of acquisition by the government and the contracting party in question. It therefore facilitates the design of possible adaptability measures with the view to increasing the government and contractor’s ability to manage and cope with different scenarios as may be dictated by the business environment. The best value in this case aids the contracting team in selecting the contractor with the ability to meet the individual customer specifications given the potential risks and fluctuations presented in the prevailing business environment.
Step 5
Developing the acquisition plan
Acquisition planning refers to the process of documenting the plan needed to manage the overall acquisition process. It includes a description of the duties and responsibilities of the concerned personnel, as well as the procedure for their individual coordination and integration. The plan indicates milestones affecting the decision making process and also other factors that have the capacity to influence the acquisition process. These include business, market, management, and technical factors among others.
The acquisition plan consists of a statement of background and objectives, and a plan of action for the intended acquisition. The process of acquisition planning establishes criteria for the evaluation of the contracting process, thus enabling the measurement of the overall acquisition process. It also facilitates the implementation of corrective action to eliminate any deviations from the intended course of operation. Best value standards, therefore facilitate the implementation of an acquisition process that meets the individual client specifications and requirements as required.
In conclusion, the process of acquisition contract management is highly essential in determining the success or failure of a specific acquisition process. It involves conforming to a series of steps established with the view to aiding the selection of efficient contractors with the ability to meet individual customer requirements as per contract specifications. Any contracting team should therefore ensure that it invests the relevant time and effort not only needed to guarantee the successful implementation of an acquisition plan, but also ensure that it delivers value to the intended customers.
