FAR Part 10

Question 1

Part 10 - Market Research

FAR Part 10 - Market Research: Policy

10.000 Scope of Part

Answer 1

Prescribes policies and procedures for conducting market research to determine the most suitable approach for acquiring, distributing, and supporting supplies and services (FAR 10.000).

mplements 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 (FAR 10.000).

Question 2

Part 10 - Market Research

FAR Part 10 - Market Research: Policy

10.001Policy
Agencies must:

Answer 2

1. Identify legitimate needs and evaluate trade-offs to acquire items that meet those needs (FAR
   10.001(a)(1)).

2.Conduct market research appropriate to the circumstances before developing newr equirements, soliciting offers, and awarding task or delivery orders under ID/IQ contracts (FAR 10.001(a)(2)).

3.Use commercially available market research methods to identify the capabilities of small businesses and new entrants (FAR 10.001(a)(2)(vi)).

Question 3

Part 10 - Market Research

10.001Policy
Agencies must:

Use market research results to:

Answer 3

Identify sources capable of satisfying the agency’s requirements (FAR 10.001(a)(3)(i)).

Determine the availability of commercial products/services or nondevelopmental items (FAR
10.001(a)(3)(ii)).

Ensure sustainable products and services are considered (FAR 10.001(a)(3)(v)).

Justify consolidation or bundling (FAR 10.001(a)(3)(vi)-(vii)).

Assess small business program utilization (FAR 10.001(a)(3)(viii)).

Evaluate information and communication technology accessibility standards (FAR 10.001(a)(3)(ix)).

Question 4

Part 10 - Market Research

10.001Policy

Agencies should minimize

Answer 4

information requests to potential sources to no more than necessary (FAR 10.001(b)).

Question 5

Part 10 - Market Research

10.001Policy

Agencies contemplating consolidation or bundling must

Answer 5

consult with small business specialists and notify affected small businesses (FAR 10.001(c)).

Question 6

FAR Part 10 - Market Research: Procedures
10.002 Procedures

Answer 6

Acquisitions begin with a clear description of the Government’s needs to allow effective market research (FAR 10.002(a)).

Question 7

Conduct market research to determine if needs can be met by:

Answer 7

Commercial products/services (FAR 10.002(b)(1)(i)(A)).

Modified commercial products/services (FAR 10.002(b)(1)(i)(B)).

Products/services used exclusively for governmental purposes (FAR 10.002(b)(1)(i)(C)).

Question 8

Techniques for market research include:

Answer 8

Consulting knowledgeable individuals (FAR 10.002(b)(2)(i)).

Reviewing recent market research (FAR 10.002(b)(2)(ii)).

Publishing formal requests for information (FAR 10.002(b)(2)(iii)).

Querying Government and commercial databases (FAR 10.002(b)(2)(iv)). o Participating in online communication (FAR 10.002(b)(2)(v)).

Reviewing catalogs and product literature (FAR 10.002(b)(2)(vii)).

Holding presolicitation conferences (FAR 10.002(b)(2)(viii)).

Reevaluate needs if commercial products/services are not available (FAR 10.002(c)).

Use part 12 policies if needs can be met by commercial products/services (FAR 10.002(d)(1)).

Document market research results appropriately (FAR 10.002(e)).

Question 9

The purpose of market research is

Answer 9

to ensure that the government uses the most appropriate
approach for acquiring, distributing, and supporting supplies and services.

Question 10

Market research is designed

Answer 10

to ensure that the
government gets the best deal within the defined market

Question 11

Definition Market research

Answer 11

Collecting and analyzing information about capabilities within the market to satisfy agency needs.

Question 12

Agencies are required to ensure that

Answer 12

legitimate needs are identified and tradeoffs evaluated ot acquire items that meet those needs.

Question 13

The FAR requires an agency to conduct market research: Before

Answer 13

Developing new requirements documents for an acquisition by that agency;

Soliciting offers for acquisitions with an estimated value ni excess of the SAT

Soliciting offers for acquisitions with an estimated value less than SAT when adequate information is not available and the circumstances justify its cost

Soliciting offers that could lead to consolidation or bundling

Awarding a task or delivery order under an IDIQ contract for other than a commercial product or commercial service ni excess of the SAT

On an ongoing basis, take advantage of commercialy available market research methods in order to effectively identify the capabilities of small businesses and new entrants into Federal contracting

Question 14

Policy for Market Research

Market research is conducted

Answer 14

to determine if
commercial or non-developmental items are available to meet the government’s needs or could be modified
to meet them.

Question 15

The requests for information made in market
research should not

Answer 15

be unduly burdensome.
Agencies should not request that potential sources submit more than the minimum information necessary.

Question 16

Special Requirements for Bundled Contracts

If an agency contemplates awarding a bundled contract,

Answer 16

the agency should consult with the local Small Business
Administration procurement center representative.

At least 30 days before release of the solicitation or 30 days prior to placing an order without a solicitation, the agency must notify any affected incumbent small business concerns of the government’s intention to bundle the requirement; and notify
any affected incumbent small business concerns of how to contact the appropriate SBA representative.

Question 17

General Procedures for Conducting Market Research
Acquisitions begin with

Answer 17

a description of the
government’s needs stated in terms sufficient to allow conduct of market research.

Market research is then conducted to determine if
commercial items or nondevelopmental items are available to meet the government’s needs or could be modified to meet the government’s needs.

Question 18

The extent of the market research conducted will vary depending on various factors.

Answer 18

Larger, longer programs may have extensive amounts of market research and data,

whereas a smaller, less expensive contract may have only a few pages of data.

Market research conducted within 18 months before the
award of any task or delivery order may be used fi the information is still current, accurate, and relevant.

Market research involves obtaining information specific to the item being acquired and should include whether the needs can be met by commercial items (including commercial items with modifications) or
nondevelopmental items.

Question 19

What Kind of Information Should Be Obtained?

Relevant data should be acquired on:

Answer 19

Customary practices for customizing, modifying or tailoring of items to meet customer needs and associated costs

Practices under which the products are sold commercially

The requirements of any regulations unique to the item
being
acquired

Availability of items that contain recovered materials or items that are energy efficient

Distribution and support capabilities of potential suppliers

Size and status of potential sources

Question 20

Techniques for Conducting Market Research

Answer 20

Contacting knowledgeable individuals in
government and industry regarding market capabilities to meet requirements

Reviewing the results of recent market research undertaken to meet similar or identical
requirements

Publishing formal requests for information

Querying government databases that provide information relevant to agency acquisitions

Communicating online with industry, with acquisition personnel, and with customers

Obtaining source lists of similar items from other contracting activities or agencies

Viewing catalogs and other generally available
product literature published by manufacturers, distributors, and dealers or available online

Conducting interchange meetings or holding pre- solicitation conferences

Question 21

Using the Data

Agencies are then required to use the results of market research to determine:

Answer 21

if sources capable of satisfying the agency’s requirements
exist;

the extent to which commercial items or non-developmental
items could either meet the need or be modified to meet the
need or fi the agency’s need can be reasonably modified to
enable use of non-developmental items; and

the extent to which commercial or non-developmental items
could be incorporated at the component level

Question 22

What the Results Indicate

If market research indicates commercial or non-
developmental items might not be available to satisfy agency needs,

Answer 22

agencies are required to reevaluate the need and determine whether the
need can be restated to permit commercial or non-developmental items to satisfy their need.

Question 23

What the Results Indicate

If market research establishes that the government’s need may be met by a type of item or service customarily available in the commercial marketplace that would meet the definition of a
commercial item, the contracting officer must

Answer 23

solicit and award any resultant contract in accordance with FAR Part 12.

Question 24

What the Results Indicate

If market research establishes that the government’s need cannot be met by a type of item or service customarily available in the marketplace,

Answer 24

FAR Part 12 shall not be used.

Question 25

Agencies shall document the results of market research

Answer 25

in a manner appropriate to the size and complexity of the acquisition.

Question 26

Market research is done to determine if

Answer 26

sources capable of satisfying the agency’s requirements exist and to determine the extent to which commercial items

or nondevelopmental items could either meet the need or could be incorporated at any point of the manufacturing process to reduce costs or increase energy efficiency or the use of recovered materials.

Question 27

If the agency anticipates bundling a contract at any point it should

Answer 27

consult with the SBA procurement center representative (PCR).

At least 30 days before release of the solicitation

or 30 days prior to placing an order without a solicitation, the agency must notifyany incumbent small business concerns, and should include instructions on how that concern may contact the appropriate SBA representative.

Question 28

Market research conducted within 18 months before the award of any task or delivery order may be used if the information is still current, accurate, and relevant.

Techniques for conducting market research include the following:

Answer 28

Contacting knowledgeable individuals in government and industry regarding market capabilities to meet requirements;

Reviewing the results of recent market research undertaken to meet similar or identical requirements;
Publishing formal requests for information in appropriate technical, scientific, or business publications;

Querying government databases that provide information relevant to agency acquisitions;
“Communicating online with industry, acquisition personnel, and customers;

Obtaining source lists of similar items from other contracting activities or agencies;

Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers, or available online; and

Conducting interchange meetings or holding presolicitation conferences.

Question 29

If market research indicates commercial or nondevelopmental items might not be available to satisfy agency needs, agencies are required

Answer 29

to reevaluate the need and determine whether the need can be restated to permit commercial or nondevelopmental items to satisfy their need.

Question 30

Similar obligations exist for prime contractors. Under prime contracts greater than $5.5 million for other than commercial items, FAR part 52.210-1,
“Market Research,” requires that before awarding any subcontract greater than the simplified acquisition threshold for other than commercial items, the contractor is required to determine the following:

Answer 30

1. If commercial items or nondevelopmental items can meet the agency’s requirements, could be modified to meet the agency’s requirements, or could meet the agency’s requirements if such requirements were modified to a reasonable extent; and
2. The extent to which commercial or nondevelopmental items could be incorporated at the component level.