# Presentation: 814004

## Market Research Primer

- Juanita Williams
- Chief, Procurement Operations Division, OPPM
- David J. Shea
- Chief, Procurement Policy Division, OPPM
- July 10, 2003

## Increasing the Odds of Competitive Sourcing Success

- Understanding what industry can offer is critical to a successful competitive sourcing effort
- Doing market research is similar to a quality house painting job – preparation is the key.  Absent it, significant problems are likely in managing the contractor/MEO
- Awarding to the MEO or contractor is just the beginning --NOT THE END—of competitive sourcing

## Welcome to the Acquisition Workforce

- Entry level positions in the General Schedule Contracting series (GS-1102)
- Senior positions in the General Contracting Series (GS-1102)
- All positions in the General Schedule Purchasing Series (GS-1105)
- _Positions in other General Schedule series in which significant acquisition-related functions are performed_
- Source:  Federal Acquisition Reform Act of 1995

## The Grieving Process(or, I just learned I’m part of the acquisition process)

- According to Dr. Elisabeth Kubler-Ross, the grieving process encompasses the following:
- Denial
- Anger
- Bargaining
- Depression
- Acceptance

## Policy

- Federal Acquisition Regulation (FAR) Part 10 (48 CFR Part 10)
- “Agencies must:
- Ensure legitimate needs are identified and trade-offs evaluated to acquire items that meet those needs;
- Conduct market research appropriate to the circumstances –
- Before developing new requirements documents for an acquisition by that agency”

## Policy (Continued)

- Agencies must use the results of market research to –
- Determine if sources capable of satisfying the agency’s requirement exist;
- Determine the practices of firms engaged in producing, distributing, and supporting commercial items (and services), such as terms for warranties, buyer financing, maintenance and packaging, and marking
- For services, what are industry practices?  For example, how does industry describe and price its services?  What are performance benchmarks? What performance measures are used?  What performance reports are used?
- CAUTION:  Be aware of contract bundling situations/small business issues!

## How Does this Fit Into the A-76 Process?

- Thorough market research is essential in developing a Performance Work Statement (PWS)/Statement Of Objectives (SOO) and related performance measure and incentives
- New A-76 circular is moving in direction recommended by Commercial Activities Panel – making process more “FAR-like”

## Procedures

- The extent of market research will vary, depending upon such factors as: urgency, estimated dollar value, complexity, and past experience
- Involve your contracting staff early in the process
- Tailor what you do to the requirement you are addressing

## Techniques(FAR 10.002)

- Contacting knowledgeable individuals in Government and industry regarding market capabilities
- Think in terms of outcomes, not process – PWS/SOO, not Statements of Work
- Reviewing the results of recent market research undertaken to meet similar or identical requirements
- Issuing Requests for Information (RFI) or Requests for Comment (RFCs) in FedBizOps

## Techniques(Continued)(FAR 10.002)

- Participating in interactive, on-line communication with industry, acquisition personnel and customers
- Obtaining source lists of similar services from other contracting activities or agencies, trade associations, or other sources
- Publishing formal requests for information in appropriate technical or scientific journals or business publications

## Techniques(Continued)(FAR 10.002)

- Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on line (for example, GSA E-schedules Library, etc.)
- Conducting interchange meetings or holding pre-solicitation conferences to involve potential offerors early in the acquisition process
- NOTE:  Agencies should document the results of market research in a manner appropriate to the size and complexity of the acquisition

## Exchanges with Industry Before Receipt of Proposals(FAR 15.201)

- Exchanges of information among all interested parties, from the earliest identification of a requirement through receipt of proposals, are encouraged
- Techniques:
- Industry or small business conferences
- Public Hearings
- Market Research
- One-on-One meetings
- Site visits
- Advisory Multi-Step Process (FAR 15.202)
- NOTE:  After solicitation release, the Contracting Officer must be the focal point of any exchange with potential offerors

## Exchanges with Industry Before Receipt of Proposals(FAR 15.201) (Continued)

- Cautions:
- Maintain “level playing field” – Procurement Integrity and Standards of Conduct requirement apply
- Don’t release sensitive Government information or proprietary vendor information
- Beware organizational conflicts of interest and unauthorized commitments!
- When in doubt; consult w/Contracting Officer

## Reality/Challenges

- Integrated Product Teams (IPTs)?
- Less than 1,000 full time procurement personnel in USDA (approx. 50% 1102/50% 1105)
- Budgets
- Developing genuine Performance Work Statements
- What performance measures to use?
- Monitoring contractor or MEO performance
- Financial incentives (positive & negative)
- Evaluating proposals

## Resources

- NASA Market Research Guide
- 7 Steps to Performance Based Service Contracting
- GSA E-Schedules Library
- Industry Association Websites
- Other Government Agencies

## Internet Tools/Sites

- www.usda.gov/procurement
- www.hq.nasa.gov/office/procurement/ market.html
- _[www.arnet.gov/Library/PreSolicit/](http://www.arnet.gov/Library/PreSolicit/)_
-    presolicit.html
- _[www.acq-ref.navy.mil/tools/](http://www.acq-ref.navy.mil/tools/)_
-     marketresearch/index.html
- Note:  check out _[www.Pro-Net.gov](http://www.pro-net.gov/)_ for potential small business sources; also, USDA Office of Small and Disadvantaged Business Utilization, (202) 720-7117

## Questions?

- Thanks for your time and attention.
- Questions:
- Juanita Williams: (202) 401-3379 or juanita.williams@usda.gov
- David Shea: (202) 720-6206 or _[david.shea@usda.gov](mailto:david.shea@usda.gov)_; also, joe.taylor@usda.gov