FAR Part 10 Flashcards
Market Research
Part 10 - Market Research
FAR Part 10 - Market Research: Policy
10.000 Scope of Part
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).
Part 10 - Market Research
FAR Part 10 - Market Research: Policy
10.001Policy
Agencies must:
- 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)).
Part 10 - Market Research
10.001Policy
Agencies must:
Use market research results to:
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)).
Part 10 - Market Research
10.001Policy
Agencies should minimize
information requests to potential sources to no more than necessary (FAR 10.001(b)).
Part 10 - Market Research
10.001Policy
Agencies contemplating consolidation or bundling must
consult with small business specialists and notify affected small businesses (FAR 10.001(c)).
FAR Part 10 - Market Research: Procedures
10.002 Procedures
Acquisitions begin with a clear description of the Government’s needs to allow effective market research (FAR 10.002(a)).
Conduct market research to determine if needs can be met by:
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)).
Techniques for market research include:
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)).
The purpose of market research is
to ensure that the government uses the most appropriate
approach for acquiring, distributing, and supporting supplies and services.
Market research is designed
to ensure that the
government gets the best deal within the defined market
Definition Market research
Collecting and analyzing information about capabilities within the market to satisfy agency needs.
Agencies are required to ensure that
legitimate needs are identified and tradeoffs evaluated ot acquire items that meet those needs.
The FAR requires an agency to conduct market research: Before
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
Policy for Market Research
Market research is conducted
to determine if
commercial or non-developmental items are available to meet the government’s needs or could be modified
to meet them.
The requests for information made in market
research should not
be unduly burdensome.
Agencies should not request that potential sources submit more than the minimum information necessary.
Special Requirements for Bundled Contracts
If an agency contemplates awarding a bundled contract,
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.
General Procedures for Conducting Market Research
Acquisitions begin with
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.
The extent of the market research conducted will vary depending on various factors.
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.
What Kind of Information Should Be Obtained?
Relevant data should be acquired on:
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
Techniques for Conducting Market Research
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
Using the Data
Agencies are then required to use the results of market research to determine:
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
What the Results Indicate
If market research indicates commercial or non-
developmental items might not be available to satisfy agency needs,
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.
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
solicit and award any resultant contract in accordance with FAR Part 12.
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,
FAR Part 12 shall not be used.
Agencies shall document the results of market research
in a manner appropriate to the size and complexity of the acquisition.
Market research is done to determine if
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.
If the agency anticipates bundling a contract at any point it should
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.
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:
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.
If market research indicates commercial or nondevelopmental items might not be available to satisfy agency needs, agencies are required
to reevaluate the need and determine whether the need can be restated to permit commercial or nondevelopmental items to satisfy their need.
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:
- 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
- The extent to which commercial or nondevelopmental items could be incorporated at the component level.
