The Acquisition Handbook

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Through Life Management Plan (TLMP)It should bring all aspects of the project together into a single planning and information focalpoint for stakeholders, (including industry at the appropriate stages in both the procurementand in-service stages of the lifecycle) providing a gateway into the detailed project information asindicated by the figure below. So it becomes a primary decision support tool.OtherstakeholdersIPTTLMPCustomers and UsersIndustryProject ‘Knowledge Base’ with related documents andsub-plans, for use in planning and decision making.A typical TLMP should include, but not be limited to, the following topics:1. Project Mission & Objectives2. Stakeholders3. Strategies4. Method5. Whole Life Costs and Resources6. Evaluation of SuccessThis framework is pitched so as to provide a context to all aspects of the project and its lifeand should therefore have wide utility.12
Whole Life Costs and Cost Of OwnershipWhole Life Costs and Cost Of Ownership (WLC and COO)Smart <strong>Acquisition</strong> includes the need to examine critically the Whole Life Costs and Cost ofOwnership of defence equipment. In order to ensure that investment decisions take full accountof the support implications of procurement, a better understanding of the costs associated withoperating, maintaining and disposal of the equipment is essential. Whole Life Costing includesthe management of costs associated with all phases of the CADMID cycle. Costs associated withthe In-Service stage of an equipment’s life are described as the Costs of Ownership.Whole Life Costs and Costs of Ownership profiles, established early and refined throughout thelife of a project, will be used to inform decision making and thereby contribute directly to theoptimisation of military output.Whole Life Costing is the continuous process of forecasting, recording and managing coststhroughout the life of an equipment with the specific aim of optimising its whole life costs andmilitary output.Cost Of Ownership is an annualisedrepresentation of the resources consumeddirectly in the procurement, operation,training, support and maintenance ofmilitary equipment at all stages of its life. Itworks in the same resourcecurrency as the Short Term Plan (STP) andemploys similar costing techniquesto those employed in Output Costing.COO is the costed element of the TLMP.Whole Life Costing and Cost Of Ownershipare an integral part of the Through LifeManagement Planning Process. By establishinga clear linkage between theEquipment Plan cash requirement and thefuture STP resource provision, an IPT and itsmajor stakeholders are able to identify, andhence develop strategies to manage, futureresource peaks. Longer-term initiatives canbe considered and agreed between stakeholdersbased on the corporate objective ofreducing annual Cost Of Ownership totals.13
Page 1: The Acquisition HandbookEdition 4 -
Page 4 and 5: ContentsWhat is this handbook for?
Page 6 and 7: The aim of Smart AcquisitionWhat is
Page 8 and 9: The Acquisition CycleWhat are the m
Page 10 and 11: Smart RequirementsSmart Requirement
Page 12 and 13: Smart Requirementsupgrade, and prog
Page 14 and 15: The Requirement SetConceptually, th
Page 18 and 19: Whole Life Costs and Cost Of Owners
Page 20 and 21: ApprovalsEquipment projects are div
Page 22 and 23: Acceptance and ISDendorse. Thereaft
Page 24 and 25: Measures and Targets and Indicators
Page 26 and 27: Public/Private PartnershipPublic/Pr
Page 28 and 29: Team Working with IndustryPFI will
Page 30 and 31: Team Working with IndustryMOD beyon
Page 32 and 33: Business Tools for AcquisitionIPT/P
Page 34: The Customers and the IPT• Requir
Page 37 and 38: Who is in the IPT?(“dotted lines
Page 39 and 40: Core, Associate and Attached IPT Me
Page 41 and 42: The Acquisition Stream (AS)The AS w
Page 43 and 44: Acquisition Competence Framework (A
Page 45 and 46: Performance ManagementSmall Project
Page 47 and 48: Acquisition Training CellAcquisitio
Page 49 and 50: Electronic VersionThis handbook is
Page 51 and 52: Jargon BusterAssociate IPT MemberAn
Page 53 and 54: Jargon BusterDemonstration StageThe
Page 55 and 56: Jargon BusterKey User Requirements
Page 57: Jargon BusterSystem AcceptanceThe f

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