2024: The FAR, Federal Acquisition Regulations - Part 7

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2024 Webinar Series
THE FAR
THE FAR – PART 7

2024 Webinar Series
THE FAR
FAR PART #7:
Acquisition Planning
SPEAKER: Joshua Duvall
FIRM: Maynard Nexsen
EMAIL: jduvall@maynardnexsen.com

FAR PART 7
Link:
https://acquisition.gov/content/part-7-acquisition-planning
February 16, 2024

Quick Introduction/Disclaimer
• FAR Part 7 is voluminous––webinar will not cover everything!
• general procedures, written acquisition plans, “high level”
• consolidation, bundling, substantial bundling, notifications
• Webinar is not legal advice and presenter not speaking for or on behalf of
any private company or government agency
• If you need legal advice for a specific legal matter, contact an attorney

FAR Part 7 – Acquisition Planning; Introduction
• Generally ensures that agencies conduct acquisitions in a timely manner
and in accordance with law and regulation
• Acquisition planning is designed to “integrate the efforts of all personnel”
in the acquisition process (i.e., stakeholder commitment)
• Ultimately ensures that agency needs are met and that the goods and
services are being procured fit agency needs

FAR 2.101 – Definitions
Acquisition means the acquiring by contract with appropriated funds of
supplies or services (including construction) by and for the use of the
Federal Government through purchase or lease, whether the supplies or
services are already in existence or must be created, developed,
demonstrated, and evaluated. Acquisition begins at the point when agency
needs are established and includes the description of requirements to
satisfy agency needs, solicitation and selection of sources, award of
contracts, contract financing, contract performance, contract administration,
and those technical and management functions directly related to the
process of fulfilling agency needs by contract.

FAR 7.102 – Policy
Agencies are required to perform acquisition planning and conduct market
research (FAR Part 10) for all acquisitions to promote and provide:
1) commercial items meet agency needs,
2) full and open competition, FAR Part 6, or when it is not required,
3) selection of appropriate contract type, FAR Part 16, and
4) appropriate use of existing contracts

FAR 7.103 – Agency Head Responsibilities
Agency Head Shall prescribe procedures for the following –
• Promoting full and open competition
• Encouraging offerors to supply commercial items
• Ensuring that the SOW is “closely aligned with performance outcomes
and cost estimates”
• Designating planners for acquisitions
• Reviewing and approving acquisition plans (incl., bundling)

FAR 7.103 – Agency Head Responsibilities
Agency Head Shall prescribe procedures for the following –
• Ensuring that knowledge gained from prior acquisitions is used to further
refine requirements and acquisition strategies
• Ensuring that planners, to the maximum extent practicable
• structure requirements to facilitate small business competition
• avoid unnecessary and unjustified bundling that precludes
• small business participation as contractors

FAR 7.104 – General Procedures
• Acquisition planning begins “as soon as the agency need is identified”
• Planner shall form a team “consisting of all those who will be responsible
for significant aspects of the acquisition, such as contracting, fiscal, legal,
and technical personnel”
• Planner shall coordinate with and secure the concurrence of the
contracting officer

FAR 7.104 – General Procedures
• Planner shall coordinate with small business specialist where acquisition
plan involves substantial bundling (FAR 7.105) unless it is set-aside for
small business under FAR Part 19
• The small business specialist shall notify agency OSDBU if the strategy
involves:
• bundling that is unnecessary or unjustified
• bundled or consolidated requirements not identified as such by the
agency (FAR 7.107)

FAR 7.105 – Contents of Written Acquisition Plans
Acquisition Background and Objectives (8 elements)
• Plan must address technical, business, management, other significant considerations
• statement of need and summarize the technical, contract history of the acquisition
• state all applicable conditions, such as cost, schedule, and performance
constraints
• Set forth the established cost goals
• Specify performance standards of the services being procured and how they are
related to the agency’s need
• Discuss expected consequences of trade-offs of cost, performance and schedule
goals
• Discuss technical, cost, and schedule risks

FAR 7.105 – Contents of Written Acquisition Plans
Plan of Action (22 elements)
• Indicate prospective sources that can meet the agency’s need & consideration of
small business
• Include consideration of the impact of consolidation or bundling on SB
• Address extent and results of market research
• Competition and contract type
• Source selection procedures
• Acquisition considerations
• Budgeting or funding; contractor vs. government performance
• Logistics
• Security considerations (cybersecurity)

FAR 7.107 – Additional Requirements for Consolidation
Bundling, and Substantial Bundling
FAR 7.107-1 –
• If the requirement is considered both consolidated and bundled, the
agency must follow FAR 7.107-3, 7.107-4, and 7.107-5.

FAR 7.107 – Additional Requirements for Consolidation, Bundling,
and Substantial Bundling
FAR 7.107-2 – Consolidation
• Because of the potential impact on small business participation,
before conducting an acquisition that is a consolidation of
requirements with an estimated total dollar value exceeding $2
million, the senior procurement executive or chief acquisition officer
shall make a written determination that the consolidation is
necessary and justified in accordance with 15 U.S.C. 657q, after
ensuring that –

• Market research has been conducted
• Alternative approaches that would involve lesser degree of
consolidation have been identified
• The determination is coordinated with the OSDBU or OSBP
• Any negative impact by the acquisition strategy on contracting with
small business concerns has been identified
• Steps are taken to include small business concerns in the acquisition
strategy

• May be necessary and justified if the benefits of the acquisition would
substantially exceed the benefits that would be derived from each of
the alternative contracting approaches identified under paragraph
(a)(2) of this subsection, including benefits that are quantifiable in
dollar amounts as well as any other specifically identified benefits
• Benefits include cost savings, quality improvements, reduction in
acquisition cycle times, better terms/conditions, other benefits

• Benefits that are quantifiable in dollar amounts are substantial if
individually, in combination, or in the aggregate the anticipated financial
benefits are equivalent to –
• 10% of the estimated contract/order if the value is $94M or less
• 5% of the estimated contract/order value or $9.4M, whichever is
greater, if the value exceeds $94M
• Benefits that are not quantifiable in dollar amounts shall be specifically
identified and otherwise quantified

FAR 7.107-3 – Bundling
Bundling may provide substantial benefits to the Government
• Because of the potential impact on small business participation, before
conducting an acquisition strategy that involves bundling, the agency shall
make a written determination that the bundling is necessary and justified
in accordance with 15 U.S.C. 644(e)
• Considered “necessary and justified” if the agency would obtain
measurably substantial benefits as compared to meeting its agency's
requirements through separate smaller contracts or orders

Agency shall quantify the specific benefits identified through the use of
market research and other techniques to explain how their impact would be
measurably substantial (see 10.001(a)(2)(iv) and (a)(3)(vii)). Benefits may
include, but not limited to:
• cost savings,
• price reduction,
• quality improvements,
• reduced acquisition cycle times,
• better terms/conditions

Benefits are “measurably substantial” if individually, in combination, or in the
aggregate the anticipated financial benefits are equivalent to –
• 10% of the estimated contract/order if the value is $94M or less
• 5% of the estimated contract/order value or $9.4M, whichever is greater, if
the value exceeds $94M
Reduction of admin/personnel costs is not sufficient unless the cost savings
are expected to be at least 10% of the contract/order value

FAR 7.107-4 – Substantial Bundling
Substantial bundling is any bundling that results in a contract or task or
delivery order with an estimated value of —
• $8M or more for the Department of Defense;
• $6M or more for the National Aeronautics and Space Administration, the
General Services Administration, and the Department of Energy; or
• $2.5M or more for all other agencies

In addition to addressing the requirements for bundling (see 7.107-3), when
the proposed acquisition strategy involves substantial bundling, the agency
shall document in its strategy—
• Specific benefits anticipated to be derived
• An assessment of the specific impediments to participation by small
business concerns as contractors

• Actions designed to maximize small business participation as contractors,
including provisions that encourage small business teaming
• Actions designed to maximize small business participation as
subcontractors
• The determination that the anticipated benefits of the proposed bundled
contract or order justify its use
• Alternative strategies that would reduce or minimize the scope of the
bundling, and the rationale for not choosing those alternatives

FAR 7.107-5 – Notifications
Notifications to current small business contractors of agency's intent to
bundle
• CO shall notify each small business performing a contract that it intends
to bundle the requirement at least 30 days prior to the issuance of the
solicitation for the bundled requirement
• Include name, number and address of the applicable SBA PCR or the
SBA Office of Government Contracting Area Office serving the area in
which the buying activity is located

Notifications to public of rationale for bundled requirement
• The agency shall publish on its website a list and rationale for any bundled
requirement for which the agency solicited offers or issued an award. The
notification shall be made within 30 days of the agency's data certification
regarding the validity and verification of data entered in the Federal
Procurement Data System to the Office of Federal Procurement Policy
(see FAR 4.604)

Notifications to SBA of follow-on bundled or consolidated requirements
• For each follow-on bundled or consolidated requirement, the contracting
officer shall obtain the following from the requiring activity and notify the
SBA PCR no later than 30 days prior to issuance of the solicitation:
• Amount of savings and benefits, whether savings or benefits will continue
to be realized, greater savings if procurement divided

Notifications to SBA of follow-on bundled or consolidated requirements
• For each follow-on bundled or consolidated requirement, the contracting
officer shall obtain the following from the requiring activity and notify the
SBA PCR no later than 30 days prior to issuance of the solicitation:
• amount of savings and benefits, whether savings or benefits will continue
to be realized, greater savings if procurement divided

FAR 7.106 – Additional Requirements for Major Systems
FAR Subpart 7.2 – Planning for Purchase of Supplies in Economic
Quantities
FAR Subpart 7.3 – Contractor vs. Government Performance
• Inherently governmental functions
FAR Subpart 7.4 – Equipment Lease or Purchase
• Length time use, financial/operating advantage, rental v. purchase price,
maintenance
FAR Subpart 7.5 – Inherently Governmental Functions
• Determine what supply or services are to be acquired, participate/vote SSEB,
member performance evaluation board, contract awards and administration,
terminating contracts, criminal investigations, control intelligence and counter-intel

2024 Webinar Series
THE FAR
THANK YOU FOR ATTENDING!
FAR PART #7:
SPEAKER: Joshua Duvall
FIRM: Maynard Nexsen
EMAIL: jduvall@maynardnexsen.com

2024 Webinar Series
THE FAR
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The FAR:
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2024: The FAR, Federal Acquisition Regulations - Part 7

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2024: The FAR, Federal Acquisition Regulations - Part 7