Source: http://acqnotes.com/acqnote/acquisitions/market-research
Timestamp: 2020-01-28 09:22:42
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Market Research - AcqNotes
Market Research (FAR Part 10) is conducted to determine the availability of commercial products and services and to identify and evaluate market practices. It’s a continuous process of finding viable sources of goods and services to meet government requirements and is mandated for all acquisition programs. It’s conducted by key members of a programs Integrated Product Team (IPT) with the goal of pulling together the necessary market information to be analyzed so an informed decision can be achieved on how to satisfy a need. The results of market research and future plans for market research are included in a programs Acquisition Strategy.
“Market research is a continuous process for gathering data on product characteristics, suppliers’ capabilities, and the business practices/trends that surround them — plus the analysis of that data to make smart acquisition decisions.” (FAR 2.1)
Federal Acquisition Regulations (FAR) for Market Research
FAR Part 8 “Required Sources of Supplies and Services”: provides a list of potential sources in priority order that Program Managers/IPTs must go thru to conduct market research.
FAR Part 10 “Market Research”: prescribes policies and procedures for conducting market research to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services.
Market research is intended to determine and help: [1,3]
Determine if sources capable of satisfying the agency’s requirements exists
Determine the extent to which commercial items or nondevelopmental items could be used to meet agency requirements.
Determine the practices of firms engaged in producing, distributing, and supporting commercial items, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking
Identify the availability (if any) of commercially available solutions
Identify customary industry terms, conditions, and warranties
Understand distribution and logistics capabilities
Uncover historical acquisition information
Ensure maximum competition
Reveal pricing information
Ensure maximum practicable use of recovered materials (see Subpart 23.4) and promote energy conservation and efficiency
FAR Part 8 “Required Sources of Supplies and Services” provides a list of potential sources in priority order. Once you’ve satisfied that requirement, you can expand your search, preferably for a commercial off-the-shelf (COTS) solution or one which would require little modification to adapt, using various other means possible. These would include but not be limited to: [1]
Published Request for Information (RFI)
Conferences w/industry
STATUTORY. A stand-alone, Regulatory requirement at Materiel Development Decision (MDD). [1]
STATUTORY updates (as part of the ACQUISITION STRATEGY) required at Milestone A and the Development RFP Release Point; not required thereafter. Conducted to reduce the duplication of existing technologies and products, and to understand potential materiel solutions, technology maturity, and potential sources, to assure maximum participation of small business concerns, and possible strategies to acquire them. For programs responding to urgent needs, included in the Course of Action Approach at the Development Milestone. [1]
Defense Acquisition Guide (DAG) “Market Research”
FAR Part 10 requires the Acquisition Strategy include the results of completed market research and plans for future market research. (See also the JCIDS Manual ). Market research information provided in the Acquisition Strategy should be sufficient to satisfy the requirements of 10 USC 2366b. For the Milestone B certification, compliance with 10 USC 2377, 15 USC 644, WSARA Sec 202, other statute & Defense Federal Acquisition Regulations Supplement (DFARS) determines the outcome of the market strategy certification element. Market research should yield an understanding of potential material solutions, their technology maturity, and potential sources, and should suggest strategies for acquiring them.
Market research is a primary means of determining the availability and suitability of commercial items and the extent to which the interfaces for these items have broad market acceptance, standards-organization support, and stability. In addition, market research is important in seeking small business capabilities. Thorough market research needs to be performed to determine whether or not small businesses are capable of satisfying the requirements. Market research supports the acquisition planning and decision process, supplying technical and business information about commercial technology and industrial capabilities to arrive at the most suitable approach to acquiring, distributing and supporting supplies and services. Market research, tailored to program needs should continue throughout the acquisition process and during post-production support.
Available Sources (vendors)
Environmental Impact Considerations & Cert Requirements
Prevalent Business Practices
Technology Trends & Technology Insertion
Market and Pricing Issues, Terms & Conditions
Government’s Presence/ Leverage in the Market
Market Analysis, Conclusions and Recommendations
Market Research Techniques Used/Functional Involvement
Market Research “Gathering Information about Commercial Products and Services” SD-5
Market Research “A Guide for Contracting Officers” – July 2012
Market Research Report Guide for Improving Service Acquisitions – Mar 2017
Website: FAR Subpart 2.1 “Definitions”
Website: FAR Part 8 “Required Sources of Supplies and Services”
[3] Website: FAR Part 10 “Market Research”
Website: FAR Part12.202 “Market Research and Description of Agency Needs”
Website: DPAP Market Research/Market Intelligence