Seven Steps
to performance-based acquisition
    
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step 2


Describe the Problem

B ecause a clearer, performance-based picture of the acquisition should be the team's first consideration, it is not yet time to retrieve the requirement's former solicitation, search for templates, think about contract type or incentives, or decide on the contractor or the solution.

Planning for an acquisition should begin with business planning that focuses on the desired improvement. The first consideration is, what is the problem the agency needs to solve? What results are needed? Will it meet the organizational and mission objectives?

Changes made to the Federal Acquisition Regulation in 2006 emphasize that acquisition planning must encompass performance-based considerations. FAR 7.105 (Contents of written acquisition plans) specifically provides that "Acquisition plans for service contracts or orders must describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those methods." Moreover, the responsibility for performance-based strategies is tied back to program officials: "Agency program officials are responsible for accurately describing the need to be filled, or problem to be resolved, through service contracting in a manner that ensures full understanding and responsive performance by contractors and, in so doing, should obtain assistance from contracting officials, as needed. To the maximum extent practicable, the program officials shall describe the need to be filled using performance-based acquisition methods." [FAR 37.102(e)]

The Government Performance and Results Act of 1993 requires that agencies establish and "manage to" mission-related performance goals and objectives. It stands to reason that any significant, mission-critical acquisition should relate in some way to the Results Act objectives. Although many acquisitions do not make this link, performance-based acquisitions must make this connection to the agency's strategic plan and to employees' performance plans.

 
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