Theme: Acquisition Streamlining

Read:

The Federal Acquisition Regulation (FAR)http://farsite.hill.af.mil/vffara.htm
Part 12 Acquisition of Commercial Items
Part 13 Simplified Acquisition Procedures

Commercial Item Acquisition Commercial and Non-Developmental Itemshttps://learn.umuc.edu/content/enforced/115100-M_001016-01-2158/Commercial%20or%20Non-

Developmental%20Item%20Acquisition%20Strategy%20by%20Paul%20Gutierrez.pdf?_&d2lSessionVal=Be5RxR4YV5LNOqg6Z6v1iS3N9&ou=115100

Common Commercial Practices

In contrast to government procurement, you will be hard pressed to find precedents for the Supreme Court's intervention in commercial contract matters, nor would the apparatus of the federal government be called into action to resolve a dispute. Nonetheless, commercial practices also aim at maintaining the buyer's and seller's honesty and integrity. We can summarize commercial procurement practice as a multistep procedure that includes many of the same requirements as the government practice, such as needs identification, proposal solicitation, evaluation, source selection, contract formation, and finally contract performance and closeout.

You might ask what is at stake for a private enterprise that it should create for itself a standard high enough to rival that of the government. For private firms, the issues of credibility and reputation are important factors, because they too wish to maintain a supplier base (just as the Defense Department may wish to maintain an adequate industrial base). And firms may require close supplier relations to ensure adequate supplies, low prices, and a cooperative marketplace in which to deal.

Some conflict is probably inevitable from time to time, but the parties would prefer to have some history of amicable relations in their dealings with suppliers and customers. One key step in that relationship is to make certain that each party is fully prepared to enter into a contract and to fulfill its obligations. Just as the government is obliged to avoid deficiencies in its contracting procedures, parties to a commercial contract guard against any accusation of anticipatory repudiation, or the idea that one party to the contract knew at the time of signing that it would not be able to fulfill all of the contract's terms.

Complete:

Participate in week 4 learning activities - Initial response due by Thursday, follow up response due by Sunday.

Learning Activity #1

COTS and other non-developmental purchases are favored and encouraged by the Government acquisition offices. What are the advantages and disadvantages of this type of contracting?

Learning Activity #2

The Government Purchase Card program has greatly expanded. The Agency/Organization Program Coordinator (A/OPC), Approving Official (AO) and Cardholder (CO) are all critical players. Read the Treasury Financial Manual 4-4500 TFM 4-4500 then discuss their roles and responsibilities.