The DOD Acquisition Process: Understanding the Adaptive Acquisition Framework

#010 Where do Business Development & Capture Activities Fit in?

Let’s discuss the link between Business Development (BD) and Capture Management to the government acquisition process. Specifically, we are going to focus on Department of Defense(DOD) Services Contracts. DoDI 5000.74 defines services contracts as “To acquire services from the private sector including knowledge-based, construction, electronics and communications, equipment, facilities, product support, logistics, medical, research and development, and transportation services”.

In FY21, ending September 2022, the DOD provided a report noting “$398.7 billion (71 percent) were spent on contracts for products and services”. To narrow this down a bit further, in FY18 (ending Sept 2019) the government stated “49.0% of the Department’s contract spend, or $123.9 billion, was spent on acquiring services”.

Defense Acquisition of Services Utilizes a Specific Pathway

DoD uses several “Pathways” or acquisition processes to acquire major programs such as major equipment or systems, prototyping new technology, or multi-year services contracts. The diagram below is the current paths known as the “Adaptive Acquisition Framework” by the Defense Acquisition University (DAU). The DAU provides a a knowledge base to educate government program management and acquisition professionals who will be acquiring and executing alongside you in the future. We are going to focus on Professional Services.

This pathway is intended to identify the required services, research the potential contractors, contract for the services, and manage performance.  The seven steps of the pathway are grouped into three phases: Plan, Develop, and Execute.

For in-depth details, I’ve provided links to each step which includes details and video explanations.

Phase 1: Plan

Step 1: Form the team. This includes establishing a team charter, government stakeholder analysis, communications plan, and a project plan.

Step 2: Review Current Strategy. This includes creation of a requirements traceability matrix to identify who owns the requirements and track program growth, responsibility matrix, and risk register.

Step 3: Market Research. The government views Market Research ((also know as a Sources Sought or Request for Information (RFI)) as essential for developing an effective acquisition strategy. It not only helps the Procuring Contracting Officer(PCO) determine how to structure performance requirements but also keeps up with the ever-changing service methods and companies. The Market Research Report is generated to support the acquisition strategy development.

Phase 2: Develop

Step 4: Requirements Definition. During this step the acquisition and program management team will complete risk analysis, Independent Government Cost Estimate (IGCE), Performance Work Statement (PWS), Statement of Objectives (SOO). Quality Assurance Surveillance Plan (QASP) and Source Selection Plan (SSP).

Step 5: Acquisition Strategy. This step determines the business arrangement (type of contract and incentive arrangement) that will exist between the government and the contractor, source selection approach (best value continuum, etc), Evaluation Factors, Acquisition Plan(set-aside, Sam.gov, GSA vehicle, agency vehicle) and Source Selection Plan. In cases where a project has been running long term and effective, many times the government will not change the current strategy. As an example, if the program is SDVOSB and FFP, it is likely to stay SDVOSB and FFP so that the government meets is set-aside goals and reduces risk.

Phase 3: Execute

Step 6: Execute the Strategy. The Solicitation or Request for Proposal (RFP) is released, technical proposal evaluations, award the contract, debrief unsuccessful offerors, finalize the Quality Assurance Surveillance Plan (QASP), and conduct the post award conference

Step 7: Performance Management. Managing the performance during the life of the contract and delivery of the services to the customer. This step is executed alongside the Contracting Officers Representative (COR) using the QASP, to make sure the performance results meet performance standards in the contract. “It must be remembered that the contractor, not the government, is responsible for quality control and meeting the contract standards.”

Correlating BD and Capture to the Seven Steps

Let’s take a moment to refresh ourselves on BD & Capture Management.

The BD lead or manager is focused on the identification or exploratory phase. The individual is charged with discovery and qualifying new business opportunities that align the company’s strategic market focus and customer access. Once the BD Manager has fulfilled their responsibilities, qualified the opportunity, and gained Gate One approvals, the Capture Manager takes over.

The Capture Manager plays a critical role in ensuring effective communication with customers throughout the entire capture & proposal process, including adhering to the prospect opportunity requirements. They are responsible for strategizing and executing the capture plan to include developing the gap analysis. The Capture Manager refines customer issues, needs, hot buttons, and discriminators through the proposal planning process; conducts competitive analysis; builds the team(partners); and executes gate reviews 2-5 (as applicable per your policy).

The BD lead and Capture Manager likely will overlap into various steps, depending on how far back in the planning process the potential opportunity is identified and qualified.

For small businesses, usually the first time they hear about an opportunity is after a federal agency releases their quarterly or annual forecast(Step 1 or 2). Not all forecasts are accurate, and the opportunity may not appear on the forecast. Unless you are actively seeking opportunities at the specific agency, you may not identify the opportunity until Market Research phase (Step 3). From a small business perspective, an effective response to the market research may be the best way to conduct capture and shape the acquisition strategy. Customer engagement and follow up is essential, please see our newsletter on engaging the government.

Industry professionals consider the Shipley Business Development Lifecycle to be the foundational process. Companies have developed modified versions to meet their processes and needs. The 96 steps are aligned to the government approach shown above. It’s important to note, the current Shipley model is resource intensive and designed for large teams. From a small business perspective, it is important to understand the time and steps the LB you are working with may be executing. As you continue developing your personal knowledge or company’s process, please feel free to reach out! Always happy to discuss best practices and see how we can work together.