12.202 Market research and description of agency need
Source: FAR 12.202 on acquisition.gov
Thorough market research and clear, standards-compliant requirements are essential for successful acquisition of commercial products and services.
Overview
FAR 12.202 outlines the requirements for conducting market research and describing agency needs when acquiring commercial products and services. The regulation emphasizes that thorough market research is foundational to developing acquisition strategies, crafting solicitations, and forming contracts. Agencies must provide detailed descriptions of their needs to ensure potential offerors understand what commercial solutions may be suitable. For acquisitions above the simplified acquisition threshold, the statement of need should specify the type of product or service, its intended use, and key performance or physical characteristics. The section also mandates adherence to procedures for specifications and standards, and requires that requirements documents address accessibility standards and Internet Protocol compliance for information technology acquisitions.
Key Rules
- Market Research Requirement
- Agencies must conduct market research to inform acquisition strategies and accurately describe their needs.
- Detailed Description of Need
- The agency’s statement of need must be detailed enough for offerors to determine suitable commercial solutions, especially for acquisitions above the simplified acquisition threshold.
- Use of Specifications and Standards
- Agencies must follow Subpart 11.2 for identifying and making available specifications, standards, and commercial item descriptions.
- Accessibility Standards
- Requirements documents must identify applicable information and communication technology accessibility standards (36 CFR 1194.1).
- Internet Protocol Compliance
- IT acquisitions using Internet Protocol must include appropriate compliance requirements per 11.002(g).
Responsibilities
- Contracting Officers: Ensure market research is conducted, needs are described in detail, and all relevant standards and compliance requirements are included in requirements documents.
- Contractors: Review agency needs and ensure proposed solutions meet described requirements, including accessibility and IP compliance where applicable.
- Agencies: Oversee the market research process, ensure compliance with standards, and maintain documentation.
Practical Implications
- This section ensures agencies leverage commercial solutions effectively and comply with legal and technical standards.
- Contractors benefit from clear requirements, but must pay close attention to accessibility and IT compliance.
- Common pitfalls include insufficient market research, vague requirements, or missing compliance elements, which can delay or jeopardize acquisitions.
(a) Market research (see 10.001) is an essential element of building an effective strategy for the acquisition of commercial products and commercial services and establishes the foundation for the agency description of need (see part 11), the solicitation, and resulting contract.
(b) The description of agency need must contain sufficient detail for potential offerors of commercial products or commercial services to know which commercial products or commercial services may be suitable. Generally, for acquisitions in excess of the simplified acquisition threshold, an agency’s statement of need for a commercial product or commercial service will describe the type of commercial product or commercial service to be acquired and explain how the agency intends to use the product or service in terms of function to be performed, performance requirement or essential physical characteristics. Describing the agency’s needs in these terms allows offerors to propose methods that will best meet the needs of the Government.
(c) Follow the procedures in subpart 11.2 regarding the identification and availability of specifications, standards and commercial item descriptions.
(d) Requirements documents shall identify the applicable information and communication technology accessibility standards at 36 CFR 1194.1 (see 11.002(f) and subpart 39.2).
(e) When acquiring information technology using Internet Protocol, agencies must include the appropriate Internet Protocol compliance requirements in accordance with 11.002(g).