Policy
Agencies must conduct and use market research to inform acquisition strategies, promote competition, and support small business participation, especially for significant or consolidated procurements.
Overview
FAR 10.001 establishes the policy for conducting market research in federal acquisitions. It requires agencies to identify legitimate needs, evaluate trade-offs, and use market research to inform acquisition strategies, especially before developing requirements or soliciting offers. The regulation outlines when market research is mandatory, including for acquisitions above the simplified acquisition threshold, those involving consolidation or bundling, and certain task or delivery orders. Agencies must use market research results to determine the availability of commercial products or services, assess small business capabilities, ensure sustainable procurement, and evaluate the necessity of consolidation or bundling. The policy also emphasizes minimizing information requests from potential sources and mandates consultation with small business specialists and notification of affected small businesses when consolidation or bundling is considered. Additionally, it references requirements for prime contractors to conduct market research for large non-commercial contracts.
Key Rules
- Market Research Requirement
- Agencies must conduct market research appropriate to the circumstances before developing requirements, soliciting offers, or awarding certain orders, especially for acquisitions above the simplified acquisition threshold or involving consolidation/bundling.
- Use of Market Research Results
- Agencies must use market research to determine the existence of capable sources, availability of commercial or nondevelopmental items, incorporation of commercial components, industry practices, sustainable procurement, and small business program opportunities.
- Small Business Considerations
- Agencies must consult with small business specialists and notify affected small businesses when contemplating consolidation or bundling.
- Minimizing Burden on Industry
- Agencies should not request more information from potential sources than necessary during market research.
- Prime Contractor Market Research
- Prime contractors may be required to conduct market research for contracts over $6 million, except for commercial acquisitions.
Responsibilities
- Contracting Officers: Ensure market research is conducted at required stages, use results to inform acquisition strategies, consult with small business specialists, and notify small businesses when required.
- Contractors: May be required to conduct market research for large non-commercial contracts.
- Agencies: Oversee compliance, minimize industry burden, and ensure small business engagement in consolidation/bundling scenarios.
Practical Implications
- This policy ensures acquisitions are informed by current market capabilities, promote competition, and support small business participation. Failure to conduct adequate market research can lead to non-compliance, missed opportunities for commercial solutions, or improper consolidation/bundling, potentially resulting in protests or delays.