The Acquisition Strategy is a comprehensive plan that identifies and describes the acquisition approach that Program Management will follow to manage program risks and meet program objectives. The Acquisition Strategy guides program execution across the entire program life cycle and is updated at every major milestone and review. An approved strategy is reviewed and approved by the Milestone Decision Authority (MDA) at Milestone A and the Development RFP Decision Point. The acquisition strategy is then updated for MDA approval at Milestone B, Milestone C, and Full-Rate Production Decision (FRPD) review. [2]
Definition: The acquisition strategy is a comprehensive, integrated plan developed as part of acquisition planning activities. It describes the business, technical, and support strategies to manage program risks and meet program objectives. The strategy guides acquisition program execution across the entire program (or system) life cycle. It defines the relationship between the acquisition phases and work efforts, and key program events such as decision points, reviews, contract awards, test activities, production lot/delivery quantities, and operational deployment objectives. The strategy evolves over time and should continuously reflect the current status and desired endpoint of the program. [1]
The purpose of the acquisition strategy is to document the development approach of a program throughout its lifecycle to help guide the Program Manager and project stakeholders in their decision-making.
The Acquisition strategy should be developed before an organization undertakes any projects. The development of the acquisition approach that Program Management will follow to manage program risks and meet program objectives requires that the key project personnel understand the work to be performed and the relationships among the various parts of that work. Acquisition Strategy development requires contributions from leadership, program management, engineering personnel, technical experts, cost estimators, schedulers, and many other areas that impact a project outcome.
Using a template when developing an acquisition strategy offers numerous advantages. It provides a structured framework, ensuring all essential elements are covered. This saves time and effort, promotes project consistency, and enables seamless collaboration among team members. Additionally, templates help incorporate best practices and lessons learned from previous successful strategies, enhancing overall effectiveness.
The Program Manager, with the support of the PS manager (PSM), will include Product Support (PS) and supportability planning, tests, evaluations, and quality reviews in the acquisition strategy and the integrated master plan/schedule. The acquisition strategy is the basis of contract data requirement lists and should consider providing for planning for incremental quality reviews of vendor/original equipment manufacturer deliverables. The acquisition strategy and the PSS should include the transition plan from interim contractor support to organic, contractor logistics support, or a combination of both. Based on the results of the product support business case analysis (PS BCA), the acquisition strategy should clearly document sustainment and O&S cost risk management, and the cost to reduce risk, thereby providing cost transparency and traceability throughout the life cycle. [3]
The business approach detailed in the acquisition strategy should be designed to manage the risks associated with the product being acquired. It should fairly allocate risk between industry and the government. The approach will be based on a thorough understanding of the risks associated with the product being acquired (including security, FOCI, supply chain risks to acquisition, and industrial base concerns) and the steps that should be taken to reduce and manage that risk. The business approach should be based on market analysis that considers market capabilities and limitations. [3]
The contract type and incentive structure should be tailored to the program and designed to motivate the industry to perform in a manner that rewards the achievement of the government’s goals. The incentives in any contract strategy should be significant enough to clearly promote desired contractor behavior and outcomes that the government values while also being realistically attainable. When the risk is sufficiently reduced, PMs will consider the use of fixed-price contracts when the use of such contracts is cost-effective. [3]
The acquisition strategy will address how program management will create and sustain a competitive environment from program inception through sustainment. Program management should use competition at various levels to create competitive environments that encourage improved performance and cost control. Decisions made in the early phases of the acquisition process can either improve or reduce program management’s ability to maintain a competitive environment throughout the program life cycle. [3]
Strategies to be considered include competitive prototyping, dual sourcing, and a modular open systems approach that enables competition for upgrades, acquisition of complete technical data packages, and competition at the subsystem level. This also includes providing opportunities for small businesses and organizations employing those with disabilities. [3]
The services acquisition strategy describes the plan to achieve the goals set in the services acquisition. The services acquisition strategy document is called an Acquisition Plan when the total cost of contracts for the acquisition program is estimated to be equal to or greater than the threshold described in Subpart 207.103(d)(i)(B) of the DFARS. The services acquisition strategy contains sufficient detail to allow senior leadership and the S-CAT decision authority to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities, including affordability. [1]
Acquisition Strategies must be designed and developed with a Modular Open Systems Approach (MOSA) to the maximum extent practicable Pursuant to Section 2446a of Title 10, U.S.C. Program Managers are responsible for evaluating and implementing MOSA to the maximum extent in their programs. The Modular Open Systems Approach (MOSA) is an integrated business and technical strategy for the assessment and implementation of open systems in the DoD. An open system is a system that employs modular design tenets, uses widely supported and consensus-based standards for its key Interfaces, and is subject to Validation and Verification, including Test and Evaluation, to ensure the openness of its key interfaces.
The acquisition strategy is reviewed and approved by the Milestone Decision Authority (MDA) at Milestone A and the Development RFP Decision Point. The acquisition strategy is then updated for MDA approval at Milestone B, Milestone C, and Full-Rate Production Decision (FRPD) review. [2]
