Overview
FAR 7.101 provides foundational terminology essential for acquisition planning, establishing a common vocabulary for managing system requirements, total ownership costs, and administrative responsibilities.
Key Rules
- Acquisition Streamlining: Focuses on resource efficiency by ensuring solicitations and contracts contain only necessary, cost-effective requirements at the appropriate stage of the acquisition cycle.
- Life-cycle Cost: Defines the total government expenditure for an item, encompassing acquisition, operation, support, and disposal costs (cradle-to-grave).
- Order: Specifically refers to orders placed under Federal Supply Schedules (FSS) or interagency vehicles like Governmentwide Acquisition Contracts (GWACs) and Multi-agency Contracts (MACs).
- Planner: Identifies the specific individual or office accountable for the acquisition planning function, regardless of whether a formal written plan is regulatory required.
Practical Implications
- Total Cost of Ownership: Agencies must look beyond the initial purchase price and evaluate long-term maintenance and disposal costs when determining the best value for the government.
- Accountability: By defining the "Planner," the FAR ensures there is a designated point of contact responsible for the strategy and requirements-vetting process, which helps prevent "requirements creep" through streamlining efforts.