Agencies Established Different Requirements and Levels of Oversight for Acquisition Planning

HHS, DHS, NASA, and USAID established policies that set different  requirements and levels of oversight for acquisition planning to balance  oversight with time and administrative burden. In particular, HHS, DHS,  and NASA each require written acquisition plans that align closely with  the elements defined in the FAR. Guidance at  all four agencies state that cost estimates and requirements documents  should be prepared during acquisition planning, and DHS and NASA  guidance include the consideration of lessons learned from previous  contracts as part of acquisition planning. Agencies Have Different Requirements for Reviewing and Approving Acquisition Planning Documents

Agencies’ requirements for who must review and approve acquisition  planning documents vary, particularly for written acquisition plans. Agencies Missed Opportunities to Build Strong Foundations for Services Contracts

Agencies did not always use the acquisition planning process to the  fullest extent possible to develop a strong foundation for the contracts we  reviewed, but some have identified ways to encourage improved  acquisition planning. We found that important planning steps were not  performed at all, could have been used more fully to improve acquisition  planning, or were not documented for future use. In particular, we  found that agencies faced challenges defining their needs, documented  cost estimates to varying degrees, and documented lessons learned to a  limited extent. We identified several practices agencies use to support  program staff with acquisition planning activities, including hiring  personnel who specialize in procurement business issues and cost and  price analysis, and providing detailed templates to assist in preparing key  documents. Agencies Have Not Established Time Frames for When Program Offices Should Begin Acquisition Planning

Most agency components have established expected time frames for the  last phase of acquisition planning—beginning when the program and  contracting offices finalize a request for contract package. However, none  of the agency components have measured and described in guidance the  time needed for program offices to develop and obtain approvals of key  acquisition planning documents—including statements of work, cost  estimates, and written acquisition plans, if required—during the pre- solicitation phase, which serves as the foundation for the acquisition  process. Agencies have also not measured the time needed during the  procurement request phase to finalize these documents in collaboration  with contracting offices. To take fuller advantage of important acquisition planning elements and  to ensure that information is available for future use, we recommend that  the Secretaries of HHS and DHS and the Administrators of NASA and  USAID direct their procurement offices to ensure that agency and  component guidance clearly define the role of cost estimating and  incorporating lessons learned in acquisition planning, as well as specific  requirements for what should be included in documenting these elements  in the contract file. Appendix I: Scope and Methodology

The objectives of this review were to assess (1) the extent to which  agencies have developed policies and procedures related to acquisition  planning; (2) how agencies have carried out acquisition planning in the  areas of requirements definition, cost estimates, and lesson learned in  selected cases; and (3) the extent to which agencies’ guidance provides  time frames for when to begin and how long acquisition planning activities  should take. four civilian agencies that obligated the most on these types of  services in fiscal year 2009: the Department of Health and Human  Services (HHS), the Department of Homeland Security (DHS),  National Aeronautics and Space Administration (NASA), and the U.S.  Agency for International Development (USAID). Management Comments:  USAID concurs.
Why GAO Did This Study

Civilian agencies obligated over $135 billion in fiscal year 2010 for services --80 percent of total civilian spending on contracts. Services acquisitions have suffered from inadequate planning, which can put budget, schedule, and quality at risk. GAO was asked to examine how civilian agencies conduct acquisition planning for services contracts and assessed (1) the extent to which agencies have developed policies and procedures for acquisition planning, (2) how agencies have carried out acquisition planning, and (3) the extent to which agencies' guidance identifies when to begin and how long acquisition planning should take. GAO reviewed acquisition planning at the four civilian agencies with the most spending on professional, administrative, and management support services. GAO also reviewed Federal Acquisition Regulation (FAR) provisions; agency regulations and guidance; and 24 selected contracts; and interviewed agency officials.

What GAO Found

The Departments of Health and Human Services (HHS) and Homeland Security (DHS), the National Aeronautics and Space Administration (NASA), and the U.S. Agency for International Development (USAID) have established policies that set different requirements and levels of oversight for acquisition planning. Acquisition planning elements--including written acquisition plans, requirements development, cost estimation, and incorporation of lessons learned--are critical to the process. HHS, DHS, and NASA require written acquisition plans that align closely with elements defined in the FAR--USAID does not. All four agencies' guidance include preparing cost estimates and requirements documents during acquisition planning, and DHS and NASA guidance include the consideration of lessons learned from previous contracts in acquisition planning. Agencies' requirements for oversight vary, including who reviews and approves acquisition planning documents. Agencies did not always take full advantage of acquisition planning to develop a strong foundation for the contracts GAO reviewed, but some have identified ways to encourage improved acquisition planning. Key planning steps were not performed, could have been better used to improve acquisition planning, or were not documented for future use. In particular, GAO found that agencies faced challenges defining their needs, documented cost estimates to varying degrees, and documented lessons learned to a limited extent. GAO identified several practices agencies use to support program staff with acquisition planning, including hiring personnel who specialize in procurement business issues and cost and price analysis and providing templates to assist in preparing key documents. Most agency components have established time frames for the last phase of acquisition planning--beginning when the program and contracting offices finalize a request for contract package. None of the agency components, however, have measured and provided guidance on the time frames needed for program offices to develop and obtain approvals of key acquisition planning documents during the pre-solicitation phase--which serves as the foundation for the acquisition process--or to finalize these documents in collaboration with contracting offices during the procurement request phase.

What GAO Recommends

GAO recommends that USAID establish requirements for written acquisition plans and that each agency enhance guidance for cost estimating and lessons learned; DHS, NASA, and USAID concurred. GAO also recommends that each agency establish time frames for pre-solicitation activities. NASA and USAID generally concurred but DHS did not, noting that existing policy states that planning should begin as soon as a need is identified. GAO clarified its recommendation to emphasize pre-solicitation planning activities. HHS had no comments.