Government spending has become a political football, and with budget cuts and sequestration, there is greater pressure to spend taxpayer dollars in the most cost effective way and to be able to prove that we are doing so. It seems like a daunting challenge, as more scrutiny has been placed on Federal programs that are competing for the limited funds in decreasing Department budgets.
Is it really that difficult to justify and obtain the funding that has become harder to acquire? With rigorous financial analysis and accurate reporting, this challenge becomes less of an obstacle.
Financial analysis throughout the entire acquisition lifecycle is one of the best practices for ensuring and providing proof of cost efficiency. Federal Government acquisitions use frameworks and processes that leverage several financial tools put in place to maximize the value procured from the solution while decreasing the risk of wasted resources, and ensuring that the best alternative is selected.
In part 1 of a two-part series, I’ll describe the financial analysis tools at the disposal of Federal programs for in-depth analysis, planning, reporting and tracking, to reduce risks and promote success in the conduct of acquisitions. In part 2, I’ll discuss three specific frameworks. [Read more...]