Seven Steps
to performance-based acquisition
    
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step 2

DESCRIBE THE PROBLEM THAT NEEDS SOLVING
Develop the Need Statement.

Defining the need in a concise narrative statement serves multiple purposes for the acquisition. First, it allows an effective dialog to begin with the market research participants. It conveys the initial message to those sources as to what the agency or organization is trying to accomplish. It becomes the foundation for subsequently building the Statement of Objectives (SOO) or Performance Work Statement (PWS) once market research is complete. It also sets the tone throughout the process for the IPT to precisely focus on solving the problem from initial conception all the way through to the post-award performance-based management (PBM) environment. So it is of utmost importance to "get it right" at the start. While contractors can provide assistance to the Government in many areas associated with acquiring goods or services, the Government must be able to define its objectives.

The following are best practices in developing the need statement

  • Use a team-based approach
  • Ensure the team is made up of program, customer, and other stakeholder staff
  • Employ a facilitator



  • Stay strategic: Focus constantly upwards to the highest level objectives and achieving the agency mission rather than getting bogged down in specific details or approaches
  • Relate the activities to the agency strategic plan
  • Validate throughout the agency
  • Determine current level of performance to establish baseline. This is sometimes expressed as current costs.

Apply this checklist: Does the Need Statement:

  • Succinctly identify the agency problem that needs to be solved?
  • Clearly state the results or outcomes required to solve the problem?
  • Identify the specific agency goals and objectives to be met?
  • Convey a clear vision for success?
  • Link to the agency's strategic plan?

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