Why is acquisition planning so important?
It is a requirement of the Federal Acquisition Regulation (FAR) Part 7 that the companies that are involved in the acquisition processes must perform a proper planning and market research (“Part 7—Acquisition Planning”, 2016). So, as a starter, I would like to emphasize the importance of the planning of the acquisition due to its legal requirement. Acquisition planning is also important as the companies that are trying to acquire contracts needs to know their capabilities before that can get the project. They must properly compare their capabilities with what is required in the TORs and apply only to those projects that they are sure to complete successfully within the allocated time. There could be penalties for not successfully completing the acquired projects on time. Also there is a need to ensure that the legal needs are identified and evaluated so that there is no legal violation.
Acquisition planning would provide useful help in understanding the conditions that are set by the government. It would also help in understanding the costs, schedules and other performing constraints. The acquisition planning would provide an opportunity to do a market research and make a comparison with the competitors. This market research would be useful in producing a proposal that could provide a competitor’s edge in the acquisition of projects.
Companies may lease of purchase different equipment while carrying out a projects. The acquisition planning would provide an overview of what equipment is required and what would be economical, leasing or purchasing the equipment. Acquisition planning could also help in identifying the availability of different equipment and their replacement if not available in the market.