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Acquisition Alert 2014-01 HHS Procurement Forecast Guidance

Acquisition Alert 2014-01

Date of Issuance: March 21, 2014

To:             Staff and Operating Division Heads
                  Staff and Operating Division Executive Officers
                  Head of Contracting Activities

From:        Angela Billups, Ph.D. - Senior Procurement Executive  /s/
                  Frank Baitman - Chief Information Officer /s/ 
                  Teresa Lewis - Director, Office of Small and Disadvantage Business Utilization  /s/

Subject: Annual Procurement Forecast– Guidance

Effective Date:  Immediately

1. References

2. Purpose

This Alert establishes guidance to assist the Department of Health and Human Services’ (HHS) Staff and Operating Divisions with the development of an Annual Procurement Forecasts, as required by the Federal Acquisition Regulation (FAR) and Section 501 of Public Law 100-656.

3. Applicability

This guidance applies to all HHS personnel responsible for significant aspects of planning future acquisitions of goods and services in an effective, responsible, and efficient manner. 

4. Responsibility

Defined roles and committed leadership enable HHS officials to make strategic decisions that achieve Department-wide acquisition outcomes; therefore, the responsibility to make acquisition decisions consistent with applicable laws has been appropriately delegated throughout the Department.  Procurement forecasting must start with the Department Program Managers, and their roles and responsibilities include developing requirements, leading integrated multifunctional project teams, and overseeing budgeting and governance processes, all of which are critical to ensuring compliance with Federal requirements to develop annual procurement forecasts.  OPDIV and STAFFDIV Executive Officers are responsible with ensuring their Annual Procurement Forecasts are completed timely and accurately.     

5. Definitions

Annual Procurement Forecast

The Annual Procurement Forecast is a projection of information which informs industry of HHS’ potential procurement opportunities with the goal of enhancing competition and increasing opportunities for small businesses.  The data in the forecast is for planning purposes only; it does not represent a pre-solicitation synopsis or constitute invitations for bid or request for proposals, nor is it a commitment by the Government to purchase the described goods and services. 

Acquisition Planning and Acquisition Plans

In accordance with (FAR) Subpart 2.1, Definitions and FAR Subpart 7.1, Acquisition Plans, acquisition planning is the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost.  It includes developing the overall strategy for managing the Department’s acquisition needs.  Information in the Annual Procurement Forecast will be used to develop HHS Acquisition Plans. 

Procurement Opportunities

For the purpose of the Annual Procurement Forecast, procurement opportunities:

  • Include all planned acquisitions of goods and services, in excess of $25,000, to be made under:
    • FAR Part 8, Required Sources of Supply (such as Blanket Purchase Agreements (BPA) and task or delivery orders under Federal Supply Schedules),
    • FAR Part 12, Acquisition of Commercial Items
    • FAR Part 16, Contract Type, (such as new contracts or Indefinite Delivery/Indefinite Quantity Contracts and Government-Wide Acquisition Contracts),
    • FAR Part 17, Special Contracting Methods (such as multi-year contracts), and
    • FAR Part 19, Small Business Programs.
  • Include all new Blanket Purchase Agreements (BPAs) to be established under FAR Part 13.303-2.
  • Exclude planned acquisitions of goods and service, regardless of dollar value, to be made under:
    • FAR Part 13.301, Government-wide commercial purchase card orders;
    • FAR Part 13.302, Purchase orders which do not meet the required threshold; and
  • Exclude planned acquisitions of goods and service, regardless of dollar value, to be made under FAR Part 18, Emergency Acquisitions.

Program and Project

As defined by Office of Management and Budget

Program - A group of assets that are planned and managed together to achieve an overall set of related outcomes - IT Investment is frequently used as a synonym for IT program. Directed and funded acquisitions that provide new, improved, or continuing systems or services in response to an approved need. Programs are divided into levels established to facilitate decision-making, execution, and compliance with statutory and regulatory requirements and may be composed of multiple projects, services contracts, interagency agreements, and other types of acquisitions. With a systems or services capability focus, programs usually tie together an agency’s higher-level programming and budgeting process with the agency strategic plan.

Project – A temporary endeavor undertaken to accomplish a unique product or service with a defined start and end point and specific objectives that, when attained, signify completion. Projects are undertaken for development, modernization, enhancement, disposal, or maintenance. Projects are composed of activities.  A planned acquisition undertaking with a definite beginning and clear termination point which produces a defined capability. A project is an individually planned, approved and managed basic building block related to a program.

6. Guidance

  • The Annual Procurement Forecast shall be prepared and approved by the OPDIV/STAFFDIV Executive Officer by September 1 of the year proceeding the fiscal year in which the procurement action will be initiated, with quarterly updates as appropriate. 
  • The Annual Procurement Forecast shall include:
    • Details of all Procurement Opportunities, as defined above, using the minimum standard data elements below. 
    • A summary list of all planned procurements to be made under FAR Parts 13.302, and 13.303-5.
    • Details of procurement actions proposed to be acquired under inter or intra agency agreements for assisted acquisitions, using the minimum standard data elements below.
  • The forecast is subject to the following stipulations:
    • Goods or services in the procurement forecast are expected to be solicited in the upcoming fiscal year, based on the best information available at the time.
    • All information in the Annual Procurement Forecast is subject to revision or cancellation.

7. Minimum Standard Data Required in Procurement Forecast Plan

  • Fiscal Year: Enter the applicable fiscal year the contract action will be awarded.
  • Staff/Operating Division (STAFFDIV/OPDIV): Specify the name.
  • Subcomponent: Specify the name of the STAFFDIV/OPDIV’s major subcomponent organization (such as an Institute, Center, Office, or Division) and lower tier organization, if applicable, that is the sponsor of the proposed procurements; using the full, unabbreviated, name of the organization.
  • Project/Program ID: Enter the identification number (project planning or other number to be determined by STAFFDIV/OPDIV) for the proposed procurement; this number will be used in the purchase request systems to track back to the procurement forecast plan.
  • NAICS Code: Specify the North American Industry Classification System (NAICS) code that best describes the principal nature of the good(s) or service(s) to be acquired,   see FAR Part 19.102.
  • Product or Service Code (PSC): Enter a Product or Service Code (PDF-328 pages).
  • Goods or Services Description: Descriptive title or brief description of the good(s) or service(s) to be acquired, avoiding abbreviations and internal jargon.
  • Related Acquisitions: Specify whether this acquisition is directly related to one or more acquisitions/investments/projects; and identify existing contract number(s) and associated period(s) of performance.   
  • Estimated Obligation Amount of Award: Specify the total amount to be obligated during the Fiscal Year covered by the Annual Procurement Forecast (e.g. the agency plans to award a contract with a base period and options, and $200,000 will be obligated for the base period).
  • Total Estimated Amount of the Contract: Specify the estimated total dollar value of the proposed acquisition (e.g. the agency plans to award a contract with a base period and options with the base period estimated at $200,000 and the options estimated at $600,000; the agency would state the total contract value as $800,000).
  • Action Type: Indicate whether the proposed acquisition is a new requirement, follow-on to an existing contract, option exercise, or other action.
  • Potential Contract Type:  Include if contract type has been considered otherwise leave blank.
  • Anticipated Acquisition Method: Specify the acquisition method for the proposed acquisition by entering one of the following:
    • 8(A) Sole Source
    • 8A Competed
    • Buy Indian
    • Economically Disadvantaged Women Owned Small Business
    • Fair Opportunity (for orders under existing contracts)
    • Full and Open
    • HUBZone Set-Aside
    • HUBZone Sole Source
    • Not Competed – Other Than Small
    • Not Competed – Small
    • Reserved for Small Business
    • Service Disabled Veteran Owned Small Business Sole Source
    • Service Disabled Veteran Owned Small Business Set-Aside
    • Small Business Set Aside – Partial
    • Small Business Set Aside – Total
    • Women Owned Small Business
    • To Be Determined (TBD).
  • Anticipated Period of Performance: Estimate the period of performance proposed for the acquisition to include option years if applicable.
  • Anticipated Place of Performance: City and State the performance is expected to occur or deliveries are expected to be sent.
  • Planned Award Date: Estimate the month and calendar year for award of the proposed acquisition. If the planned award date has not been determined, enter TBD.
  • Requiring Office/Program Office Point of Contact: Specify the name, telephone number, and e-mail address of the appropriate point of contact from the program office for the procurement forecast information.

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Content created by Assist. Sec./Financial Resources-Division of Acquisition
Content last reviewed on March 28, 2014