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BREADCRUMB

 1. Home
 2. Regulations
 3. FAR
 4. Part 10 - Market Research


FAR

FAC Number: 2023-02
Effective Date: 03/16/2023

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Subpart10.0
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« PreviousNext »
Part 10 - Market Research


PART 10 - MARKET RESEARCH

10.000 Scope of part.

10.001 Policy.

10.002 Procedures.

10.003 Contract clause.

Parent topic: Federal Acquisition Regulation


10.000 SCOPE OF PART.

This part prescribes policies and procedures for conducting market research to
arrive at the most suitable approach to acquiring, distributing, and supporting
supplies and services. This part implements the requirements of 41 U.S.C.
3306(a)(1)(link is external), 41 U.S. C. 3307(link is external), 10 U.S.C.
3453(link is external), and 6 U. S.C. 796(link is external).


10.001 POLICY.

(a) Agencies shall—

(1) Ensure that legitimate needs are identified and trade-offs evaluated to
acquire items that meet those needs;

(2) Conduct market research appropriate to the circumstances–

(i) Before developing new requirements documents for an acquisition by that
agency;

(ii) Before soliciting offers for acquisitions with an estimated value in excess
of the simplified acquisition threshold;

(iii) Before soliciting offers for acquisitions with an estimated value less
than the simplified acquisition threshold when adequate information is not
available and the circumstances justify its cost;

(iv) Before soliciting offers for acquisitions that could lead to consolidation
or bundling ( 15 U.S.C.644(e)(2)(A)(link is external)) and 15 U.S.C. 657q(link
is external));

(v) Before awarding a task or delivery order under an
indefinite-delivery/indefinite-quantity (ID/IQ) contract (e.g., GWACs, MACs) for
other than a commercial product or commercial service in excess of the
simplified acquisition threshold ( 10 U.S.C. 3453(c)(link is external)); and

(vi) On an ongoing basis, take advantage (to the maximum extent practicable) of
commercially available market research methods in order to effectively identify
the capabilities of small businesses and new entrants into Federal contracting
that are available in the marketplace for meeting the requirements of the agency
in furtherance of-

(A) A contingency operation or defense against or recovery from cyber, nuclear,
biological, chemical, or radiological attack; and

(B) Disaster relief to include debris removal, distribution of supplies,
reconstruction, and other disaster or emergency relief activities (See 26.205);
and

(3) Use the results of market research to–

(i) Determine if sources capable of satisfying the agency’s requirements exist;

(ii) Determine if commercial products or commercial services, or, to the extent
commercial products suitable to meet the agency’s needs are not available,
nondevelopmental items are available that-

(A) Meet the agency’s requirements;

(B) Could be modified to meet the agency’s requirements; or

(C) Could meet the agency’s requirements if those requirements were modified to
a reasonable extent;

(iii) Determine the extent to which commercial products, or nondevelopmental
items could be incorporated at the component level;

(iv) Determine the practices of firms engaged in producing, distributing, and
supporting commercial products or commercial services, such as type of contract,
terms for warranties, buyer financing, maintenance and packaging, and marking;

(v) Ensure maximum practicable use of recovered materials (see subpart  23.4)
and promote energy conservation and efficiency;

(vi) Determine whether consolidation is necessary and justified (see 7.107-2) (
15 U.S.C. 657q(link is external));

(vii) Determine whether bundling is necessary and justified (see 7.107-3) ( 15
U.S.C.644(e)(2)(A)(link is external));

(viii) Determine whether the acquisition should utilize any of the small
business programs in accordance with part  19; and

(ix) Assess the availability of supplies or services that meet all or part of
the applicable information and communication technology accessibility standards
at 36 CFR 1194.1(link is external) (see subpart  39.2).

(b) When conducting market research, agencies should not request potential
sources to submit more than the minimum information necessary.

(c) If an agency contemplates consolidation or bundling, the agency—

(1) When performing market research, should consult with the agency small
business specialist and the local Small Business Administration procurement
center representative (PCR). If a PCR is not assigned, see 19.402(a); and

(2) Shall notify any affected incumbent small business concerns of the
Government's intention to bundle the requirement and how small business concerns
may contact the appropriate Small Business Administration procurement center
representative (see 7.107-5(a)).

(d) See 10.003 for the requirement for a prime contractor to perform market
research in contracts in excess of $6 million, other than contracts for the
acquisition of commercial products or commercial services (section 826 of Pub.
L. 110-181).


10.002 PROCEDURES.

(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/(link is external) 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.


10.003 CONTRACT CLAUSE.

The contracting officer shall insert the clause at 52.210-1, Market Research, in
solicitations and contracts over $6 million, other than solicitations and
contracts for the acquisition of commercial products or commercial services.

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