10.002 Procedures
Source: FAR 10.002 on acquisition.gov
Thorough and well-documented market research is mandatory to determine if commercial solutions can meet the Government’s needs and to guide the appropriate acquisition procedures.
Overview
FAR 10.002 outlines the required procedures for conducting market research in federal acquisitions. It mandates that acquisitions begin with a clear description of the Government’s needs, followed by thorough market research to determine if commercial products, services, or nondevelopmental items can meet those needs. The regulation details the factors influencing the extent of market research, acceptable techniques, and the documentation requirements for the process. It also provides guidance on how to proceed if commercial solutions are not available and specifies when to use commercial item acquisition procedures under FAR Part 12.
Key Rules
- Needs Description
- Acquisitions must start with a detailed statement of the Government’s requirements to facilitate effective market research.
- Market Research Requirements
- Market research must assess the availability of commercial or nondevelopmental solutions, considering urgency, value, complexity, and prior experience. Research conducted within 18 months may be reused if still relevant.
- Market Research Techniques
- Acceptable techniques include contacting experts, reviewing prior research, publishing RFIs, querying databases, online communications, reviewing catalogs, and holding industry meetings.
- Reevaluation of Needs
- If commercial solutions are not available, agencies must reconsider and potentially restate their needs to allow for commercial solutions.
- Use of FAR Part 12
- If commercial products/services are available, Part 12 procedures must be used; if not, a notice must be issued stating Part 12 will not be used.
- Documentation
- The results of market research must be documented appropriately for the acquisition’s size and complexity.
Responsibilities
- Contracting Officers: Must ensure needs are clearly described, conduct and document market research, determine applicability of Part 12, and issue required notices.
- Contractors: Should be prepared to respond to market research inquiries and participate in presolicitation activities.
- Agencies: Must oversee the market research process and ensure proper documentation.
Practical Implications
- This section ensures acquisitions are informed by current market capabilities, promoting efficiency and competition. It impacts daily contracting by requiring thorough market research and documentation, and by dictating when commercial item procedures apply. Common pitfalls include inadequate research, poor documentation, or failure to use Part 12 when required.
(a) Acquisitions begin with a description of the Government’s needs stated in terms sufficient to allow conduct of market research.
(b) Market research is then conducted to determine if commercial products, commercial services, or nondevelopmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs.
(1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant. Market research involves obtaining information specific to the product or service being acquired and should include-
(i) Whether the Government’s needs can be met by-
(A) Products or services of a type customarily available in the commercial marketplace;
(B) Products or services of a type customarily available in the commercial marketplace with modifications; or
(C) Products or services used exclusively for governmental purposes;
(ii) Customary practices regarding customizing, modifying or tailoring of products or services to meet customer needs and associated costs;
(iii) Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made;
(iv) The requirements of any laws and regulations unique to the item being acquired;
(v) The availability of items that contain recovered materials and items that are energy efficient;
(vi) The distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and
(vii) Whether the Government's needs can be met by small business concerns that will likely submit a competitive offer at fair market prices (see part 19).
(2) Techniques for conducting market research may include any or all of the following:
(i) Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements.
(ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements.
(iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications.
(iv) Querying the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/" target="_blank">https://www.contractdirectory.gov/contractdirectory/ and other Government and commercial databases that provide information relevant to agency acquisitions.
(v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers.
(vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources.
(vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.
(viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.
(ix) Reviewing systems such as the System for Award Management, the Federal Procurement Data System, and the Small Business Administration's Dynamic Small Business Search.
(c) If market research indicates commercial products, commercial services, or nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with 10.001(a)(3)(ii) and determine whether the need can be restated to permit commercial products, commercial services, or nondevelopmental items to satisfy the agency’s needs.
(d)
(1) If market research establishes that the Government’s need may be met by a type of product or service customarily available in the commercial marketplace that would meet the definition of a commercial product or commercial service at subpart 2.1, the contracting officer shall solicit and award any resultant contract using the policies and procedures in part 12.
(2) If market research establishes that the Government’s need cannot be met by a type of item or service customarily available in the marketplace, part 12 shall not be used. When publication of the notice at 5.201 is required, the contracting officer shall include a notice to prospective offerors that the Government does not intend to use part 12 for the acquisition.
(e) The head of the agency shall document the results of market research in a manner appropriate to the size and complexity of the acquisition.