# DLAD PGI PART 7 – ACQUISITION PLANNING

- DLAD PGI PART 7 – ACQUISITION PLANNING

- PGI SUBPART 7.1 – ACQUISITION PLANS

- PGI 7.104-90 [Reserved.]
- PGI 7.104-91 [Reserved.]
- PGI 7.105-90 Contents of written acquisition plans.

DLAD PGI PART 7 – ACQUISITION PLANNING

PGI SUBPART 7.1 – ACQUISITION PLANS

(Revised February 14, 2013 through PROCLTR 2013-24)

PGI 7.104-90 [Reserved.]

PGI 7.104-91 [Reserved.]

PGI 7.105-90 Contents of written acquisition plans.

Paragraphs conform with and supplement the guidance at FAR 7.105 and DFARS 207.105. An acquisition plan shall be prepared in accordance with FAR 7.105, DFARS 207.105, and this section of the DLAD. The format and detail provided in the acquisition plan should be commensurate with the complexity and dollar value of the acquisition. Follow the outline provided at FAR 7.105 in preparing an acquisition plan.

(a) Acquisition background and objectives.

(1) Statement of need. The statement of need shall include:

(i) The nomenclature, a brief nontechnical description, and general statement of use or purpose the acquisition is intended to satisfy.

(ii) Identification of requiring activity.

(iii) A statement as to whether or not the supplies are stocked.

(iv) The technical and contractual history.

(A) The history shall include a description of efforts to:

(1) Facilitate the use of commercial items (e.g., removing unnecessarily restrictive features of requirements documents).

(2) Obtain/acquire/develop a complete technical data package free of proprietary rights suitable for full and open competition; or

(3) Have restrictive features of specifications removed; and/or

(4) Develop a clear, unambiguous statement of work.

(B) Contract performance history for the same or similar supplies or services, e.g., name(s) of contractors(s), type of contracts, dollar value, degree of competition, contract clearance approval level (DLA 1.690-3), award date, unit price, contractor size status, contractor performance history (including delivery and quality performance) and significant problems encountered (e.g., customer complaints, contract disputes or protests, or Congressional inquiries).

(v) For acquisition of services greater than $10 million, the plan must include a statement that the requirement has been reviewed and validated at the appropriate level in accordance with Section 863 of Public Law 111-383 (2011 National Defense Authorization Act (NDAA)).

(2) [Reserved.]

(3) Cost. Provide the estimated dollar value of the acquisition including all options, S&S requirements, the quantity proposed to be acquired, and the anticipated unit prices.

(4) Capability or performance.

(i) Discuss the basis for the decision to use the requirements document(s) being used for this acquisition and provide a copy of or reference the requirements document(s) to be used.

(ii) Discuss commercial equivalency.

(iii) If interim requirements documents descriptions are proposed, provide estimated completion date and any pertinent industry comments to date.

(iv) Discuss previous problems with requirements document(s) and efforts made to resolve those problems.

(5) Delivery or performance-period requirements.

(i) Provide estimates of production lead times.

(ii) Describe whether supplies or services are required by specified times to support other supplies, services, systems, or program requirements.

(iii) Describe management considerations of the supplies, as appropriate, e.g., depot capabilities, stock rotational requirements, and shelf life.

(iv) Describe production surveillance reporting requirements.

(v) If the acquisition is subject to FAR Subpart 17.1, Multi-year Contracting (e.g., it is structured with a base and/or option period of performance greater than one year that includes more than one year’s worth of requirements in that base and/or option and is neither IDIQ nor fully-funded), describe the results of the analyses required by FAR 17.105-1(b) and DFARS 217.170(a) and 217.171 or 217.172, as applicable.

(b) Plan of action.

(1) Sources.

(i)(A)(1) Discuss the nature, extent, and results of the market survey and any market research performed or requested in support of the acquisition strategy developed.

(2) Include an analysis, coordinated with the appropriate legal office, of whether the requirements of 10 USC 2461 and/or OMB Circular A-76 are applicable to the procurement. Include the specific reasons that these requirements are or are not applicable. Detailed factual and legal analysis may be required to determine whether the requirements apply, especially in cases where the requirement involves supplementation of or replacement of tasks currently performed by Government personnel or within the mission of a Government organization.

(3) Include an analysis, coordinated with the appropriate legal office, of whether bundling or consolidation are applicable to the procurement.

(4) For LTCs, confirm that market research was conducted to determine availability of surplus material; and that, if market research indicated all or a portion of the recommended buy (RB) quantity of an item was available as surplus material, the RB quantity for that item was reduced by the quantity that was available as surplus and the quantity removed from the LTC was acquired separately, using whatever procedures were appropriate to the circumstances (e.g., competitive solicitation, emergency support procedures for high priority requirements, etc.)

(B)(1) Confirm that business rules for LTCs were followed (see procurement business rule or job aid for long term contracting, which can be accessed at the online-help through the enterprise business system (EBS) portal. )

(2) Based on market research conducted in accordance with FAR and DLAD Part 10, Market Research, state whether the acquisition will be conducted under FAR Part 12, Acquisition of Commercial Items, and provide the basis for that determination.

(3) Conduct and report the results of bundling or consolidation analysis, as appropriate; see sections 7.107, 7.170, and Part 10.

(ii) Discuss the] applicability of socioeconomic requirements, e.g., small business set-asides, 8(a), small disadvantaged business (SDB), historically underutilized business zone (HUBZone), service-disabled veteran-owned small business (SDVOSB), economically disadvantaged women-owned small business (EDWOSB), or historically black colleges/universities or minority institutions (HBCUs/MIs), and results of discussions with small business representatives, including any conclusions as to whether the proposed action constitutes a bundling or consolidation of contract requirements, and whether bundling or consolidation analysis has been or will be conducted. If no set-aside is possible, discuss why, and state if there are any actions being pursued to allow a set-aside for future procurements.

(iii) Also consider use of such mandatory sources as AbilityOne qualified agencies.

(2) Competition.

(i) Discuss alternative supplies, services, systems or programs which could be acquired using full and open competition if use of full and open competition is not planned. If appropriate, discuss the tradeoffs of use of such substitutes in terms of price differences, quality, and acquisition and production lead time. Discuss alternative acquisition strategies which have been considered or could be used to provide for increased competition.

(A) Describe the activity competition advocate's (see FAR 6.5) actions to date relative to the supplies/services proposed to be acquired including a description of efforts to have restrictive aspects of specifications, technical data, or statements of work revised/deleted; summarize discussions with the military departments, or other requiring activity, and industry relative to alternatives to increase competition.

(1) Discuss the feasibility of use of full and open competition with exclusion of a source to establish an alternative source or sources (FAR 6.202(a)).

(B) Describe strategies for developing/achieving competition for current and future acquisitions.

(C) Identify sources to be solicited. Discuss efforts/plans for developing or locating additional sources, including discussions with industry, trade associations, use of presolicitation notices, and advance notices on Federal Business Opportunities (FedBizOpps).

(D) Include the activity competition advocate's comments on the plan.

(3) Contract type selection. The acquisition plan shall identify any proposed use of time and material (T&M) or labor hour (LH) Contract Line Item Numbers (LINS), contracts, or task orders. The monitoring and reporting requirement is found in 16.601-90. When discussing contract type selection, address any use of T&M/LH CLINS or contract type and clearly show why no other contract type can suffice for the requirement. Discuss strategy to migrate T&M/LH use to other contract types and contract administration measures for mitigating risk.

(4) [Reserved.]

(5) Acquisition considerations.

(i) Discussion of previous acquisition strategy reviews.

(ii) Discuss any pertinent foreign purchase/sales matters.

(iii) Discuss applicability of progress payments, economic price adjustments, bid guarantees, or performance bonds.

(6) Budgeting and funding. Describe the type of funds, which are proposed to be used for the acquisition, including any relevant limitations on use of such funds.

(7) through (10) [Reserved.]

(11) Management information requirements. Discussion of performance metrics, and the points of contact for monitoring contract performance.

(12) and (13) [Reserved.]

(14) Logistics considerations.

(i) Depot, inventory control point (ICP), DCMA, and military service component impact statement. As part of the acquisition plan, attach copies of depot, DLA ICP, DCMA, and military service component impact statement(s) which address the downstream effects of implementing prime vendor arrangements, direct vendor delivery (DVD), vendor managed inventory, or any other strategy that affects traditional depot functions, or workload/resources at DLA ICPs, DCMA organizations, or military service components.

(A) If possible, this effect should be quantified in terms of the number of national stock numbers (NSNs) that will no longer be processed by the depots, the amount of storage space that will become available for other uses, and the timeframe over which these items will no longer be shipped to depots (show number of NSNs for each time period). The decision to convert to DVD should be explained as being economically sound for the ICP/Agency (including quantitative justification), or required as a performance objective of the acquisition and resultant contract, (e.g., because the customers delivery requirements dictate DVD support), or as contributing to Agency success in achieving goals set by Congress, the Office of the Secretary of Defense (OSD), or other policy-making entities.

(B) Additionally, acquisition plans should list any federal supply classes (FSCs) or NSNs included in the proposed contracting instrument that are assigned for management by an ICP other than the one executing the contract, and provide documentation that the other DLA center(s) is/are aware of the proposed contract coverage, timetable, and inventory drawdown. An explanation of the reasons for including the NSNs in the proposed contract should be provided. Plans should also address whether center resource managers and union representatives have been apprised of any potential workforce implications. Acquisition plans should address/include plans for accommodating any potential workforce impact (e.g., retraining).

(C) Plans should include an assessment of potential impact to Military Service component(s) and verification that the Service has been apprised of this potential impact.

(ii) Describe requirements for use of, or plans to use, qualified products lists, qualified manufacturers lists, or other qualification requirements (see FAR and DLAD Subpart 9.2). Provide the number of products/sources on such lists. Describe plans for qualifying additional products/sources. Discuss methods to be used to determine quality/compliance with requirements, e.g., first article test requirements, production test, in-process surveillance, inspection and acceptance criteria, or any other special test requirement. Discuss alternatives to the above and criteria for waiving same. Describe production surveillance and any production progress reporting requirements. Describe any requirements for certification, licensing, or approval by Government control agencies. Discuss any use of certificate of conformance or certificate of quality compliance.

(iii) Explain the nature of relevant patents, copyrights, or proprietary data. Identify plans to acquire rights to data.

(15) Government-furnished property.

(i) Discuss the rationale for use of any Government-furnished material.

(ii) Contractor use of Government supply sources. For contractor(s) authorized use of DLA-managed supply sources, describe the diversion control mechanism(s) in place to ensure access is limited to authorized items in authorized quantities, and contractor use of DLA supplies is proper. (See 51.102(f)(1).)

(16) [Reserved.]

(17) Environmental and energy conservation objectives. Discuss sustainability considerations. Indicate if the proposed action is subject to the 95 percent sustainability requirements for new contract actions for the supply of products and the acquisition of services in accordance with DOD Strategic Sustainability Performance Plan (SSPP), Executive Orders 13423 and 13514, and FAR 23.103. If an exemption exists for the proposed contract action in accordance with FAR 23.103, please indicate this in the acquisition plan.

(18) [Reserved.]

(19) Contract administration. Plans should include an assessment of potential impact to DCMA workload and identify the milestone date by which DCMA will be apprised of this potential impact (e.g., no need for quality assurance representatives (QARs) where there was previous need, no DD250s to be processed for acceptance). This date should allow DCMA sufficient time to plan for any resource impact.

(20) Other considerations.

(i) [Reserved.]

(ii) –(iii) Explain how the acquisition addresses definition of S&S requirements, the contractor’s development of capability to meet S&S requirements, and ability to test (i.e., validate) that S&S capability. Provide the basis for development of the surge and/or sustainment requirements. If S&S requirements are not included, provide basis for their exclusion, and identify the alternative means of obtaining surge and/or sustainment capability. Identify potential need for industrial preparedness funds for S&S solutions, the approach for handling S&S investments at the end of the contract, and whether the surge investments will be considered Government property. If S&S items will be added after award of the contract, address definition of S&S requirements, contractor’s assessment of S&S capability, and S&S testing for the added items. Provide all language concerning S&S to be used in soliciting concepts or proposals (i.e., broad agency announcement (BAA), addendum to the BAA, and request for proposal (RFP).

(iv) – (vii) [Reserved.]

(viii)(A) Describe phase-out and disposition plans for any current or due-in stocks for supplies being replaced.

(B) Include projected annual requirements, stock levels planned, feasible alternatives to those levels, and acquisition cycle. Describe mobilization requirements, if applicable. (See Subpart 17.93.)

(ix) [Reserved.]

(x) A business case analysis (BCA) will be developed in accordance with the guidelines set forth in DLA Instruction 2101, Acquisition Business Case Analysis, and shall accompany the acquisition plan. Approval thresholds for acquisition-related BCAs are addressed in 1.690 and also referred to in Subpart 37.5 for the acquisition of services. Although the BCA and the bundling or consolidation benefit analysis required in 7.107 and 7.170 are not synonymous, the quantitative analysis in the BCA generally can be used in the determination of benefits accruing from the bundling or consolidating of contract requirements. When the BCA is used in this manner, the data pertaining specifically to bundling or consolidation should be extracted from the overall BCA and provided as a separate document in support of the justification to bundle or consolidate the requirements, unless the information cannot be fully understood without providing the entire BCA.

(21) In planning milestones, all procurements shall not exceed one year from time of issuance of the solicitation or request for proposal until contract award. (See 1.690-4(a)(3) for required reporting if award time is exceeded.)

(c) Streamlined acquisition plan (SAP) format.

(1) Acquisitions between the SAT and $10 million generally are less complex in nature. Since there are many ways to acquire the required products and services sought, planning is imperative, but planning for acquisitions with a dollar value above the SAT to $10 million may not require as much detail as more complex acquisitions. The SAP format below is recommended and not mandatory. The plan may be modified as required to meet specific contracting requirements.

Table 1. Template - Streamlined Acquisition Plan (SAP)

(Acquisitions greater than the Simplified Acquisition Threshold up to $10 Million)

For Official Use Only Source Selection Information -- See FAR 2.101 and 3.104 (Complete and select the box that is appropriate for the acquisition situation) Date: Contracting office:       Buyer name: Requiring activity:       Voice (DSN): Project title:       Fax (DSN): Supply criticality: Acquisition specialist’s/buyer’s e-mail address: Purchase request (PR) or control number: ☐ Construction ☐ Service ☐ Supply ☐ Research and development (R&D) a. Product Service Code: (Specify for services) b. Services Portfolio Category: (Specify for services) I. Brief description of requirement (FAR 7.105(a)(1) a. Government estimate: $       (include all options and surge values) b. Period of performance       (include options) c. Delivery schedule: II. Proposed acquisition approach a. Extent of competition: ☐ Full and open competition ☐ Other than full and open competition* * FAR 6.3 authority (Specify): ☐ Full and open after exclusion of sources ☐ Competitive non-DoD ☐ Mandatory use policy, including waivers (e.g., under Part 8) ☐ Limited sources (e.g. under Part 8.405-6): b. Small business set-aside: (See FAR Part 19) ☐ Competitive small business set-aside (SBSA) ☐ Competitive 8a ☐ Sole source 8a ☐ Service Disabled Veteran Owned Small Business (SDVOSB) Set-Aside ☐ SDVOSB sole source ☐ Historically underutilized business zone (HubZone) Sole Source ☐ HubZone set-aside ☐ Small disadvantaged women owned business (SDWOB) ☐ Economically disadvantaged women owned small business (EDWOSB) ☐ Historically Black colleges and universities / minority institutions (HBCU/MI) ☐ Not applicable (NA) (If acquisition is unrestricted) ☐Other (Specify): c. Procedures: (Check all that apply) ☐ FAR 8.404 (GSA/Non-DoD Competitive) ☐ FAR 12 Commercial Items ☐ FAR 13 Simplified Acquisition Procedures ☐ FAR 14 Sealed Bidding ☐ FAR 15 Negotiation ☐ FAR 36 Construction and Architect and Engineer (A&E) and design build d. Contracting method ☐ Invitation for bid (IFB) ☐ Competitive request for proposal (RFP) ☐ Sole source RFP ☐ Other (fill-in) e. Basis of award: ☐ Sealed bid – Part 14 ☐ Negotiation – Part 15 ☐ Lowest price technically acceptable ☐ Performance price trade-off without technical factors/proposal ☐ Performance price trade-off with technical factors/proposal ☐ Full trade off source selection (an acquisition plan is highly recommended) ☐ General Services Administration (GSA)/non-DoD competitive ☐ Other (explain): Identify evaluation factors: f. Contract type (Check all that apply): ☐ Fixed-price ☐ Time and material/labor hour agreements ☐ Economic price adjustment ☐ Incentive ☐ Award fee ☐ Cost-reimbursement ☐ Redetermination ☐ Indefinite delivery contract (IDC) ☐ Multiply Award ☐ Single Award (Provide rationale why single award) ☐ Other (Specify): g. Sustainability: ☐ Contains sustainability requirements. ☐ Sustainability exception applies: (Specify) ☐ Sustainability requirements waived, approved by: (Specify) h. Other considerations (Check all that apply): ☐ Progress payment ☐ Warranty ☐ First article test (FAT) ☐ Government furnished property(GFP) / Government furnished material (GFM) / Government furnished equipment (GFE) involved ☐ Other (specify). Other items/considerations may include, Non-Economy Act or Economy Act assisted acquisitions and use of reverse auction) III. Prior procurement history: (If applicable) IV. Market research: (Discuss the purpose, nature, extent, involved personnel/offices and results/status, commerciality, and estimated completion date of any market research initiated/to be initiated in support of the instant purchase request or anticipated future requirements (see also FAR, DFARS, and DLAD Parts 10, 11, ) V. Problems /risk/vulnerabilities (See DLAD 7.105-90) VI. Projected key milestone dates: Receive purchase request (PR): Issue solicitation: Receive bids/offers: Complete evaluations: Award contract: Contract start: _____________________________________________________ Acquisition specialist or buyer name and signature, date _________________________________ ____ Contracting Officer Name and Signature Date VII. Approvals: ** The following section is to be completed by reviewer/approving official. ** Reviewer’s name:       Reviewer’s DSN/ phone number: Reviewer’s e-mail: ☐ Streamlined acquisition plan (SAP) approved as submitted ☐ SAP conditionally approved subject to comments below ☐ SAP disapproved (reviewers are required to include comments below) ☐ Requirement has been reviewed and validated by (specify): Reviewer’s comments: Reviewer’s signature: ______________________ ** The following section is to be completed by the small business specialist when required** ☐ Small business specialist coordination _____________________________ Small business specialist's comments: ** The following section is to be completed by the competition advocate when required** ☐ Competition Advocate coordination _____________________________ Competition advocate’s comments: