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                            Part 10 - Market Research
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Part 10 - Market ResearchPart 10 - Market Research       10.000 Scope of part.                                          10.001 Policy.                                          10.002 Procedures.                                          10.003 Contract clause.    **Parent topic:**  Federal Acquisition Regulation10.000 Scope of part.       This part prescribes policies and procedures for conducting market research to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services. This part implements the requirements of   41 U.S.C. 3306(a)(1),   41 U.S. C. 3307,                   10 U.S.C. 3453, and   6 U. S.C. 796.10.001 Policy.       (a) Agencies shall—                                                         (1) Ensure that legitimate needs are identified and trade-offs evaluated to acquire items that meet those needs;                                                            (2) Conduct market research appropriate to the circumstances–                                                                           (i) Before developing new requirements documents for an acquisition by that agency;                                                                              (ii) Before soliciting offers for acquisitions with an estimated value in excess of the simplified acquisition threshold;                                                                              (iii) Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost;                                                                              (iv) Before soliciting offers for acquisitions that could lead to consolidation or bundling (  15 U.S.C.644(e)(2)(A)) and   15 U.S.C. 657q);                                                                              (v) Before awarding a task or delivery order under an indefinite-delivery/indefinite-quantity (ID/IQ) contract (*e.g.*, GWACs, MACs) for other than a commercial product or commercial service in excess of the simplified acquisition threshold (  10 U.S.C. 3453(c)); and                                                                              (vi) On an ongoing basis, take advantage (to the maximum extent practicable) of commercially available market research methods in order to effectively identify the capabilities of small businesses and new entrants into Federal contracting that are available in the marketplace for meeting the requirements of the agency in furtherance of-                                                                                             (A) A contingency operation or defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; and                                                                                                (B) Disaster relief to include debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief activities (See  26.205); and                                                                                                                                                                      (3) Use the results of market research to–                                                                           (i) Determine if sources capable of satisfying the agency’s requirements exist;                                                                              (ii) Determine if commercial products or commercial services, or, to the extent commercial products suitable to meet the agency’s needs are not available, nondevelopmental items are available that-                                                                                             (A) Meet the agency’s requirements;                                                                                                (B) Could be modified to meet the agency’s requirements; or                                                                                                (C) Could meet the agency’s requirements if those requirements were modified to a reasonable extent;                                                                                                                                         (iii) Determine the extent to which commercial products, or nondevelopmental items could be incorporated at the component level;                                                                              (iv) Determine the practices of firms engaged in producing, distributing, and supporting commercial products or commercial services, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking;                                                                              (v) Ensure maximum practicable use of recovered materials (see  subpart  23.4) and promote energy conservation and efficiency;                                                                              (vi) Determine whether consolidation is necessary and justified (see  7.107-2) (  15 U.S.C. 657q);                                                                              (vii) Determine whether bundling is necessary and justified (see  7.107-3) (  15 U.S.C.644(e)(2)(A));                                                                              (viii) Determine whether the acquisition should utilize any of the small business programs in accordance with  part  19; and                                                                              (ix) Assess the availability of supplies or services that meet all or part of the applicable information and communication technology accessibility standards at   36 CFR 1194.1 (see  subpart  39.2).                                                                                                                            (b) When conducting market research, agencies should not request potential sources to submit more than the minimum information necessary.                                          (c) If an agency contemplates consolidation or bundling, the agency—                                                         (1) When performing market research, should consult with the agency small business specialist and the local Small Business Administration procurement center representative (PCR). If a PCR is not assigned, see  19.402(a); and                                                            (2) Shall notify any affected incumbent small business concerns of the Government's intention to bundle the requirement and how small business concerns may contact the appropriate Small Business Administration procurement center representative (see  7.107-5(a)).                                                                             (d)                   See  10.003 for the requirement for a prime contractor to perform market research in contracts in excess of $6 million, other than contracts for the acquisition of commercial products or commercial services (section 826 of Pub. L. 110-181).10.002 Procedures.       (a) Acquisitions begin with a description of the Government’s needs stated in terms sufficient to allow conduct of market research.                                          (b) Market research is then conducted to determine if commercial products, commercial services, or nondevelopmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs.                                                         (1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant. Market research involves obtaining information specific to the product or service being acquired and should include-                                                                           (i) Whether the Government’s needs can be met by-                                                                                             (A)                                     Products or services of a type customarily available in the commercial marketplace;                                                                                                (B)                                     Products or services of a type customarily available in the commercial marketplace with modifications; or                                                                                                (C)                                     Products or services used exclusively for governmental purposes;                                                                                                                                         (ii) Customary practices regarding customizing, modifying or tailoring of products or services to meet customer needs and associated costs;                                                                              (iii) Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made;                                                                              (iv) The requirements of any laws and regulations unique to the item being acquired;                                                                              (v) The availability of items that contain recovered materials and items that are energy efficient;                                                                              (vi) The distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and                                                                              (vii) Whether the Government's needs can be met by small business concerns that will likely submit a competitive offer at fair market prices (see  part  19).                                                                                                           (2) Techniques for conducting market research may include any or all of the following:                                                                           (i) Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements.                                                                              (ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements.                                                                              (iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications.                                                                              (iv) Querying the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies available at   https://www.contractdirectory.gov/contractdirectory/ and other Government and commercial databases that provide information relevant to agency acquisitions.                                                                              (v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers.                                                                              (vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources.                                                                              (vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.                                                                              (viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.                                                                              (ix) Reviewing systems such as the System for Award Management, the Federal Procurement Data System, and the Small Business Administration's Dynamic Small Business Search.                                                                                                                            (c) If market research indicates commercial products, commercial services, or nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with  10.001(a)(3)(ii) and determine whether the need can be restated to permit commercial products, commercial services, or nondevelopmental items to satisfy the agency’s needs.                                          (d)                                                         (1) If market research establishes that the Government’s need may be met by a type of product or service customarily available in the commercial marketplace that would meet the definition of a commercial product or commercial service at  subpart  2.1, the contracting officer shall solicit and award any resultant contract using the policies and procedures in  part  12.                                                            (2) If market research establishes that the Government’s need cannot be met by a type of item or service customarily available in the marketplace,  part  12 shall not be used. When publication of the notice at  5.201 is required, the contracting officer shall include a notice to prospective offerors that the Government does not intend to use  part  12 for the acquisition.                                                                             (e) The head of the agency shall document the results of market research in a manner appropriate to the size and complexity of the acquisition.10.003           Contract clause.       The contracting officer shall insert the clause at  52.210-1, Market Research, in solicitations and contracts over $6 million, other than solicitations and contracts for the acquisition of commercial products or commercial services.
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