FAR Companion Part 10

Part 10 - Market Research

FC10.001 FC 10.001 Conducting market research.

Federal acquisition teams should approach market research as an incremental process that builds understanding step by step. Start by getting familiar with the marketplace relevant to your buy, and what capabilities are available, especially if you're working in an area that's new to you or your agency. Once you understand the marketplace for your requirement, determine if existing agency capabilities can fulfill the need. Federal Acquisition Regulation (FAR) Companion If you do not already have the capability within your agency, the next phase of market research can focus on whether shared services and other existing federal contract vehicles already offer the products or services you need—this need. This can save time and effort. If existing contracts don't meet your requirements, then assess the marketplace more broadly for an open market acquisition. Throughout this process, examine whether commercial products or services can work as-is or with minor changes, and consider how industry typically handles contracts, warranties, and support. Market research can also reveal how your requirement may be met by small businesses, non- traditional contractors, or new entrants. The amount of research you do should match your situation—simple purchases need less research than complex ones, and you can often build on research that's already been done if it's still relevant. Remember, if commercial options seem limited at first, consider whether you can adjust your requirements to use what's available in the marketplace. Research thoroughly as you frame your decision.

FC10.001(b) FC 10.001(b) Data-informed decision-making.

The Federal acquisition workforce has access to relevant and up-to-date data to frame market research and resultant acquisition decisions. This data is in systems such as, but not limited to, the System for Award Management (SAM.gov), the Contractor Performance Assessment Reporting System (CPARS.gov), the Federal Procurement Data System (FPDS.gov), the U.S. Small Business Administration Small Business Search, and other tools and datasets accessible through websites such as Acquisition.gov and Acquisition Gateway. Use available data to shape strategies that match market realities, especially when deciding between acquisition methods or assessing vendor capability. You have discretion to use what is appropriate, as your professional judgment is trusted.

FC10.001(b) FC 10.001(b) Sources for market research.

Meaningful engagement with industry helps to ensure your market research supports well- formed requirements and sound acquisition strategies, especially in complex or changing markets. You have flexibility to scale your efforts based on the size, complexity, and market conditions pertinent to your acquisition. Sources of market research used to inform an acquisition should reflect current market conditions. Federal Acquisition Regulation (FAR) Companion When conducting market research, you have a multitude of options for gathering information about the marketplace. These options include both desk research and industry engagement: engagement, such as: ● Reviewing existing contract databases and procurement records to see what other agencies with similar requirements have purchased. ● Reviewing industry publications and trade journals to understand available products and market trends. ● Learning from industry through presolicitation conferences, industry days, reverse industry days, trade conferences, special notices, sources sought, requests for information, technical discussions, capability presentations, site visits, and online forums where vendors and government buyers exchange information. ● Examining supplier information from online resources like federal solution finders, category management websites, vendor websites, and on-line product literature. Federal Acquisition Regulation (FAR) Companion ● Talking with colleagues both within your agency and at other agencies who have worked on similar acquisitions or reaching out to technical experts who understand the requirements.

FC10.001(c) FC 10.001(c) Exchanges with industry.

Exchanges with industry before issuing the formal solicitation are considered market research. The main purpose in this stage is to develop requirements and to form the most suitable competitive approach to meeting the agency’s needs. During market research, government officials including the program manager, users, small business specialists, IT specialists – specialists, as well as the contracting officer — officer, can meet one-on-one with potential offerors. Government officials are not required to meet with all possible offerors. As a reminder, government officials must never promise business to any company or share other companies’ information during exchanges. FC10.001(c) FC 10.001(c) Industry engagement opportunities. Industry days and presolicitation conferences directly benefit the government by promoting a common understanding of the agency’s requirements and procurement specific information (such as requirements or solicitation terms and conditions). These engagement opportunities, when well conducted, also benefit industry – especially small businesses – by providing prime contractors and subcontractors a chance to meet and develop relationships or teaming agreements that benefit contract performance. The value of these events derives from the government’s willingness to provide maximum information to industry on its requirements, answer questions, and improve the solicitation based on feedback from potential offerors and contractors.

FC10.001(d) FC 10.001(d) Requests for Information & Special Notices.

In government procurement, Special Notices, Sources Sought, and Requests for Information (RFIs) are essential for communication between agencies and industry partners. They enable the government to gather information and assess market capabilities before solicitations are issued. Federal Acquisition Regulation (FAR) Companion These notices are a means to signal upcoming opportunities. Sources Sought Notices are typically published to identify potential contractors, while Special Notices allow for formal information exchange before issuing a solicitation. Both of these help the government identify qualified suppliers through demonstrated capabilities and get feedback from industry on draft government requirements. They help vendors gain visibility and prepare for future solicitations by responding with information on their expertise and offerings. These tools help the government refine acquisition strategies before releasing a solicitation.

FC10.001(e) FC 10.001 Commercial acquisitions. A Under FAR 10.001, market research is not required prior to soliciting offers for acquisitions with an estimated value up to the simplified acquisition threshold. Further, a written market research report is not required prior to placing an order for acquisitions of commercial products or commercial services under the simplified acquisition threshold or for orders under existing Federal Acquisition Regulation (FAR) Companion Federal Supply Schedule contracts or governmentwide acquisition contracts established by category management.

The contracting officer’s award documentation can serve as sufficient documentation of market research depending on the size and complexity of the acquisition. Refer to the applicable ordering procedures of the contract vehicle for specific guidance.