Part 10 - Market Research

10.000 Scope of part.

10.001 Policy.

10.002 Procedures.

10.003 Contract clause.

Parent topic: Federal Acquisition Regulation

10.000 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.