Before you consider any particular techniques for acquiring systems or services, it is useful to understand the three major stages of an acquisition.

Understanding

The first stage is understanding. In the understanding stage, people work out a definition of the tasks that need to be done. Often, they develop an approach towards doing those tasks. Traditionally, the understanding stage has involved only the customer, who has produced a Statement of Requirements (SOR). The SOR has often been incorporated in an Invitation to Tender (ITT) or a Request for Proposals (RFP). With some acquisitions it may be more useful to involve the potential providers during the understanding stage. In the understanding stage, the initial work, in setting the scope of acquisition, is carried out by the customer. The customer and the provider then work together to produce a joint understanding of what needs to be done.

Agreement

The second stage is agreement. In the agreement stage, the customer and the provider agree how the approach will be implemented, and what obligations and responsibilities will be required of the two parties. Traditionally, the agreement stage has consisted of the customer sending out the ITT or RFP and getting Tenders or Proposals in return. A selection of a preferred supplier would then be made by the customer. The only real agreement would be the nomination of the preferred supplier. It may be useful to consider an alternative in which the customer and the provider continue to work together to prepare a joint agreement on the nature of the acquisition.

Contract

The third stage is the contract stage, in which the agreement becomes a formal contract for the supply of services to the customer by the provider. Traditionally, the contract stage has consisted of a full contract negotiation. With the alternative of involving the provider through the understanding and agreement stages, the main work in the contract stage will be transforming the joint agreement into a formal contract.