Mgmt – 350 Contract Administration
The Acquisition ProcessHow 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
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 eventPossible causes of the undesirable eventProbability (cumulative) of occurrence of each causeConsequences of the undesirable eventTime window during which action must be taken to deal with the riskRisk aversion strategy, along with milestones and responsibilityAcquisition Management by R. Marshall Engelbeck, Management Concepts, pg. 348Acquisition PlanningWhy 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.