34.002
Policy
Agencies must acquire major systems by promoting innovation and sustaining competition, focusing on mission-based needs rather than prescribing specific solutions.
Overview
FAR 34.002 establishes the core policy for acquiring major systems, emphasizing the need for agencies to pursue acquisitions that are effective, economical, and timely. The regulation requires agencies to foster innovation and ensure full and open competition, particularly during the early stages of major system development. Agencies must articulate their needs based on mission objectives rather than prescribing specific solutions, and they must dedicate resources and management attention to the initial phases of major programs. Additionally, agencies are directed to maintain competition among alternative system concepts and sources for as long as it remains advantageous.
Key Rules
- Promote Innovation and Competition
- Agencies must encourage innovation and full and open competition, especially in the development of major system concepts, as required by FAR Part 6.
- Mission-Based Requirements
- Agency needs and acquisition objectives should be defined in terms of the agency’s mission, not by specifying particular systems.
- Focus on Early Program Stages
- Agencies should allocate resources and management attention to the initial stages of major system programs.
- Sustain Competition
- Agencies must maintain effective competition between alternative system concepts and sources for as long as it is beneficial.
Responsibilities
- Contracting Officers: Ensure solicitations and acquisitions for major systems are structured to promote innovation and competition, and that requirements are mission-based.
- Contractors: Respond to mission-based requirements and participate in competitive processes.
- Agencies: Oversee acquisition strategies, dedicate resources to early program stages, and sustain competition throughout the acquisition lifecycle.
Practical Implications
- This policy aims to prevent agencies from prematurely locking into specific solutions, thereby encouraging innovation and cost-effectiveness.
- Contractors should expect requirements to be broad and mission-focused, with opportunities for competition at multiple stages.
- Common pitfalls include overly prescriptive requirements and insufficient competition, which can lead to higher costs and less effective solutions.