Best acquisition method and contract type to procure statement of work
When contracting for services it is government policy to use design-based acquisition methods
Figure 1. Complex requirements, particularly those unique to the Government, usually result in greater risk assumption by the Government. Cost-reimbursement [Cost plus]: In a cost-reimbursement contract the offeror provides a fixed fee, but also reimburses the contractor for labor, material, overhead, and administration costs. Prepare a Purchase Request, including product descriptions; priorities, allocations and allotments; architecture; government-furnished property or equipment or Government-Off-The-Shelf GOTS ; government-furnished information; information assurance and security considerations; and required delivery schedules. LSE provides technical resource estimates. For an example of this, see the Technology Development Phase in Figure 1. As a result, the systems engineering team is usually involved in establishing the technical outsourcing contract requirements, technical selection criteria, technical monitoring and control processes, and technical acceptance and integration processes. Document market research results and identify potential industry sources. As a requirement recurs or as quantity production begins, the cost risk should shift to the contractor, and a fixed-price contract should be considered. This marriage of architecture, engineering, and computer sciences is relatively new, but widely recognized. Understanding which practices in the best process produce such good results. Commercial organizations sometimes subcontract with other commercial organizations to provide missing expertise and to balance the ebb and flow of staffing needs.
Lead system engineer LSE provides program technical requirements. Relating Acquisition to Request for Proposal and Technical Attributes There are several formats for requesting proposals from offerors for building complex systems.
The contract type remains firm-fixed-price when used with these incentives. And perhaps most important, the facility users ' subjective satisfaction with both the acquisition process as well as the completed facility should be noted.
LSE provides technical resource estimates.
For example, potential bidders could be asked for their assessment of a proposed system's performance based on the maturity level of new and existing technologies. Outsource contracts: Outsourced contracts are used to obtain goods or services by contracting with an outside supplier.
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Offeror and Supplier Interactions There should be an environment of open communication prior to the formal source selection process. IT services: IT services provide capabilities that can enable an enterprise, application, or Web service solution. PM and LSE ensure the specific programmatic and technical needs are defined clearly e. Identify data requirements. With this type of contract the risks reside primarily with the offeror. If the contractor proposes extensive subcontracting, a contract type reflecting the actual risks to the prime contractor should be selected. The offeror and supplier need to clearly communicate the technical aspect of the program throughout the procurement process. It acts as the framework for planning, organizing, staffing, controlling, and leading a program, as well as for establishing the appropriate contract mechanisms. Price adjustments based on established prices should normally be restricted to industry-wide contingencies. Figure 1.
In essence, the acquisition strategy is a high-level business and technical management approach designed to achieve program objectives within specified resource constraints. Office of the Secretary of Defense.
This single price is sometimes referred to as low bid or lump sum. Slide rules have given way to calculators and computers.
In more complex acquisition the government uses two common approaches in contractor selection
The CII benchmarking program uses the following definitions and objectives: Benchmarking: A systematic process of measuring one's performance against results from recognized leaders for the purpose of determining best practices that lead to superior performance when adopted and utilized. Contractor risk usually decreases as the requirement is repetitively acquired. Redichek's cost for conducting the discipline interface design review is approximately 0. The contract type remains fixed-price with economic price adjustment when used with these incentives. Fifty percent of construction change orders result from errors in the design documents directly related to improper interfaces between design disciplines civil, structural, architectural, electrical, and mechanical. Indirect costs, the business impact costs discussed above, are highly variable and very difficult to estimate, but are potentially huge. These studies concluded that quality design yields buildings that perform well throughout their service lives NRC, The process of acquisition is defined by a series of phases during which technology is defined and matured into viable concepts.
Identify data requirements.
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