Mgmt - 350 Contract Administration

The Acquisition Process

How does government acquisition differ from private business one?

     According to R. Marshall, acquisition is “not thought of as a function but as a process that links customer needs with customer satisfaction.  This process should be viewed as a series of steps and activities for converting specific inputs into specific outputs.”  (Marshall, 2002).

      In the private sector, acquisition is more flexible and open to innovation.  One significant difference is that the public sector seems frightened to talk to suppliers, relying too much on the use of formal processes & arms length negotiations.  (Herbert, 2013)

Acquisition Management by R. Marshall Engelbeck, Management Concepts, pg. 41

http://spendmatters.com/uk/public-and-private-sector-procurement-what-do-you-think-of-the-differences/

Successful Acquisition Factors

What factors are critical for successful acquisition?

     Success in managing the stakeholder relationship is among the critical success factors.  The others are:

• Client acceptance
• Client consultation
• Top management support
• Acquisition plans and schedules
• Monitoring of feedback
• Communication and
• Troubleshooting

Acquisition Management by R. Marshall Engelbeck, Management Concepts, pg. 40

Acquisition Risks

Describe acquisition risks and the ways to control them

     Acquisition risks and the management of them cannot be completed until they are identified, analyzed, and characterized.  The following factors, which should be identified during risk analysis, are used to describe the characteristics of each risk:

• Description of the undesirable event
• Possible causes of the undesirable event
• Probability (cumulative) of occurrence of each cause
• Consequences of the undesirable event
• Time window during which action must be taken to deal with the risk
• Risk aversion strategy, along with milestones and responsibility

Acquisition Management by R. Marshall Engelbeck, Management Concepts, pg. 348

Acquisition Planning

Why is acquisition planning so important?

     Acquisition planning is important because it allows planners to determine if expectations are realistic; particularly the expectations of the requesting entities, which usually expect their requirements met on short notice and over a shorter period than the application of the corresponding procurement method allows.  It is also an opportunity for all stakeholders involved in the processes to meet in order to discuss particular procurement requirements. These stakeholders could be the requesting entity, end users, procurement department, technical experts, and even vendors to give relevant inputs on specific requirements.