government agencies
There are more than 1,500 federal government buying offices
The U.S. federal government is the biggest buyer of supplies and services in the world
More than 14 million procurement actions occur
every fiscal year
More than $195 billion is appropriated every fiscal year
Procurement Actions
Of all federal government procurements….
Small purchases (those under $25,000) have made up more than 50%
Orders (issued per existing task order contracts, basic ordering agreements, and so on) have made up more than 30%
New contracts (those over $25,000) have made up less than 1%
Department of Defense (DOD)
Procurements
DOD has spent more than $115 billion each
year during the past five fiscal years
Which DOD departments spend the most?
Air Force
Navy
Army
Defense Logistics Agency (DLA)
The Federal Acquisition Process
Preaward Phase
Needs Recognition
Award Phase
Contract
Award
Postaward Phase
Contract
Administration
Acquisition
Planning
Solicitation/
Evaluation
Contract Budgeting and Funding
Key Terms and Concepts
Authorization
Appropriation
Apportionment
Allocation and allotment
Administrative commitment
Obligation and expenditure
Authorization and Appropriation
Congressional functions
Provide approval and funding
Strict limits on government acquisition
Annual appropriations (one year money)
Multiyear appropriations (color of money)
No-year appropriations (unlimited)
Anti-Deficiency Act (prohibits an agency from committing money they do not have)
Apportionment
Office of Management and Budget (OMB)
function (distribution function)
Time period distribution to agencies
Limit on obligations
Controls rate of expenditure
Allocation and Allotment
Agency functions
Limits on obligations
Administrative control and expenditures
Administrative Commitment
Agency budget office function
Sets funds aside for procurement
Ensures availability of funds
Anticipates obligation
Obligation
Appropriated funds
Legally binding commitment to spend
Function of contracting officer
Accomplished by contract award
Full funding
Incremental funding
The Federal Acquisition Regulations (FAR)
Federal Statutes and Regulations
No single procurement law
Governed by many laws
Laws in United States Code (USC)
Laws implemented by regulations
Code of Federal Regulations (CFR)
Federal Register (FR) (announcements of changes to the FAR)
FAR 1.102-4(e)
The FAR outlines procurement policies and procedures that are used by members of the
Acquisition Team. If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law
(statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited. Rather, absence of direction should be interpreted as permitting the Team to be innovative and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Competition Requirements
Policies
Full and open competition
Full and open after exclusions
Other than full and open competition (required by law to write a justification)
Competitive procedures
Justification and approval
Public notice
Full and Open Competition
All responsible sources may compete
Competitive procedures
Sealed bidding
Competitive negotiation
Architect-engineer selections
Research and development (R&D) announcements/reviews Multiple-award schedules
Full and Open Competition After Exclusions
To establish or maintain sources
Requires documentation
Requires approval of agency head
Set-asides
Small business
Section 8(a)
Other Than Full and Open Competition
Only one responsible source
Unusual and compelling urgency
Mobilization or R&D capability
International agreement
Authorized or required by statute
National Security
Public
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