52.210-1
Market Research
Contractors must conduct and document market research for subcontracts exceeding the simplified acquisition threshold to prioritize commercial and nondevelopmental solutions.
Overview
FAR 52.210-1, Market Research, requires contractors to conduct market research before awarding subcontracts (other than for commercial acquisitions) that exceed the simplified acquisition threshold. The purpose is to determine whether commercial products, commercial services, or nondevelopmental items are available to meet agency needs, or could be modified to do so. Contractors must also assess if such items could be incorporated at the component level. This clause ensures that government acquisitions leverage existing commercial solutions whenever possible, promoting efficiency and cost-effectiveness.
Key Rules
- Market Research Requirement
- Contractors must conduct market research before awarding qualifying subcontracts to identify available commercial products, services, or nondevelopmental items that meet or could be modified to meet agency requirements.
- Applicability Threshold
- The requirement applies to subcontracts (other than commercial acquisitions) exceeding the simplified acquisition threshold as defined in FAR 2.101 at the time of subcontract award.
- Component-Level Assessment
- Contractors must also determine if commercial or nondevelopmental items can be incorporated at the component level.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable solicitations and contracts.
- Contractors: Conduct and document market research for qualifying subcontracts, considering commercial and nondevelopmental solutions.
- Agencies: Oversee compliance and encourage use of commercial items.
Practical Implications
- This clause exists to promote the use of commercial and nondevelopmental items, reducing costs and acquisition time.
- Contractors must be diligent in researching the market and documenting their findings before awarding subcontracts above the threshold.
- Failure to comply may result in noncompliance findings or contract issues during audits or reviews.