Procedures
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.