Overview
FAR Part 7 prescribes the policies and procedures for developing acquisition plans, conducting market research, and determining the most effective method of procurement. It establishes a framework for agencies to decide between commercial and government resources, lease versus purchase options for equipment, and ensures that "inherently governmental functions" remain performed by federal employees.
Key Rules
- Mandatory Planning: Agencies must perform acquisition planning and conduct market research for all acquisitions to promote the use of commercial products/services and maximize competition.
- Written Plan Requirements: While planning is required for all acquisitions, formal written plans are specifically mandated for cost-reimbursement contracts and other high-risk, complex, or high-dollar procurements based on agency-established thresholds.
- Life-Cycle Costing: Planners must consider the total cost of ownership, including acquisition, operation, support, and disposal, rather than just the initial purchase price.
- Small Business & Anti-Bundling: Agencies must structure requirements to facilitate small business participation and are strictly regulated regarding "bundling" or "consolidation" of requirements that might exclude small firms.
- Commercial Preference: The FAR mandates a preference for commercial products and services or non-developmental items to the maximum extent practicable.
- Inherently Governmental Functions: Contractors are prohibited from performing functions that are so intimately related to the public interest as to mandate performance by Government employees (e.g., the act of officially committing the government to a course of action).
Responsibilities
- Agency Head (or Designee): Responsible for prescribing internal planning procedures, setting thresholds for formal plans, and ensuring the agency complies with sustainability and competition mandates.
- The Planner (often the Program/Project Manager): Designated to lead a multi-disciplinary team (contracting, legal, fiscal, technical); responsible for drafting the plan, identifying risks, and reviewing/revising the plan at least annually.
- Contracting Officer (CO): Must concur with the acquisition plan, ensure the chosen contract type is justified/documented, designate a Contracting Officer’s Representative (COR) early, and ensure that requirements do not unfairly restrict competition.
- Small Business Specialist: Reviews acquisition strategies to identify and mitigate unnecessary bundling or consolidation that could harm small business opportunities.
- Requirements and Logistics Personnel: Tasked with avoiding "urgent" or unrealistic schedules and ensuring that performance standards are clearly defined and aligned with cost estimates.
Practical Implications
- Strategic Lead Times: In real-world scenarios, Part 7 emphasizes that planning should begin as soon as a need is identified. Procurement "emergencies" caused by a lack of planning do not justify waiving competition requirements.
- Risk Management: By requiring the discussion of "Trade-offs" and "Risks" (Technical, Cost, and Schedule) within the written plan, the FAR forces agencies to have a mitigation strategy before a solicitation is even released.
- Interagency Coordination: The rules regarding "Orders" (7.101) and "Interagency Acquisitions" require planners to check existing government-wide contracts (like GSA Schedules) before creating new standalone contracts, preventing redundant administrative costs.
- Avoidance of Scope Creep: The requirement to align the Statement of Work (SOW) with performance outcomes and cost estimates ensures that the government does not pay for features or services that do not directly fulfill the stated mission need.