Policy
Agencies must conduct and use market research to ensure acquisitions meet legitimate needs, maximize competition, and support small business and sustainability goals.
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. Market research must be conducted before developing requirements, soliciting offers above the simplified acquisition threshold, and in other specified circumstances, including potential consolidation or bundling. Agencies must use market research results to determine the availability of capable sources, commercial products or services, sustainable solutions, and small business participation. 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. Prime contractors may also be required to conduct market research for certain large contracts.
Key Rules
- Legitimate Needs and Trade-Offs
- Agencies must clearly identify needs and evaluate trade-offs to acquire suitable items.
- Market Research Requirements
- Conduct market research before developing requirements, soliciting offers above the simplified acquisition threshold, and in other specified scenarios.
- Use of Market Research Results
- Use findings to assess source availability, commercial solutions, sustainable products, and small business opportunities.
- Minimize Information Requests
- Only request the minimum necessary information from potential sources during market research.
- Small Business Consultation and Notification
- Consult with small business specialists and notify incumbent small businesses when considering consolidation or bundling.
- Prime Contractor Market Research
- Prime contractors may be required to conduct market research for contracts over $7.5 million (non-commercial acquisitions).
Responsibilities
- Contracting Officers: Ensure market research is conducted at required stages, use results to inform acquisition strategies, consult with small business representatives, and notify affected small businesses.
- Contractors: May need to conduct market research for large, non-commercial contracts as specified.
- Agencies: Oversee compliance with market research requirements, especially regarding small business participation and sustainable solutions.
Practical Implications
- This section ensures acquisitions are informed by current market capabilities, promoting competition, innovation, and small business participation. Failure to conduct proper market research can lead to non-compliance, missed opportunities for commercial or sustainable solutions, and potential protest or audit findings. Agencies must balance thoroughness with efficiency, avoiding unnecessary burdens on potential sources.