What is the initial action required after determining that a function will be contracted?

The initial action required after determining that a function will be contracted is to develop the requirements package. This step is essential because it defines what is needed from the contractor, including specific tasks, deliverables, performance standards, and any regulatory requirements. The requirements package serves as the foundation for the contracting process. It ensures that all stakeholders have a clear understanding of expectations and requirements, which is crucial for obtaining proposals that meet the organization's needs.

This initial package also helps in setting the scope of work, budget considerations, and timelines for completion. Once this document is established, further actions like conducting market analyses or soliciting bids can follow more effectively, as the information needed for those processes will be clearly defined.