Looking for help with:
Prepares Performance Work Statement documents
Conduct market research on for sustainment support contract
Assist in preparing acquisition strategy
Prepare Independent Government Estimate for Contract support
MARKET RESEARCH
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Introductions
Jim McCloskey, Instructor
Participants
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Welcome and Introductions
State:
My name is ____ (provide information about who you are and your experience in contracting).
We will serve as your training consultants throughout this course.
It is our goal that you will leave with a general understanding of the justification and approval process.
Have the students introduce themselves by quickly providing their:
Name,
Program Office,
Total number of years of acquisition and contracting experience.
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Housekeeping
Course Hours
Breaks
Lunch
Facility Overview
Break Rooms
Restrooms
Lunch Locations
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Review housekeeping items using the slide as a guide.
State:
Before we get started, we’d like to review some housekeeping items with you.
This course is three days in length and will begin promptly at 0830 am. We will end the day at 1630 hours.
We have breaks scheduled throughout the day that are 15 minutes in length. However, if necessary, we will break as needed.
Lunch will occur at 1200 and will be one hour in length.
Point out the location of the restrooms and break rooms at the facility as well as nearby places for lunch.
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Ground Rules
Be on Time
Turn Off Electronic Devices
Ask Questions
Participate
Provide Feedback
Have Fun
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Review the ground rules using the slide as a guide.
State:
We’d like to establish some ground rules for the course before we get started.
We ask that you arrive in the morning and return from breaks and lunch on time. This will help us to ensure that we end the day on time.
We understand that you are taking time away from your normal work schedule to be here and that you may have duties to attend to back at the office. We also know training is important to your career growth. To help you and your peers get the most from your training experience, we ask that you turn off or silence your cell phones while class is in session.
In order to ensure understanding and address specific items important to you, please feel free to ask questions and engage in conversation at any time.
Participate in our activities. Experience has shown us that when you engage in activities, your brain retains information.
And lastly, have fun! This is a safe environment for you to explore various scenarios. We hope you find the course engaging.
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Course Topics
What Is Market Research?
Why Is Market Research Important?
Who Performs Market Research?
How and When Is Market Research Performed?
What Are the Types of Market Research?
How to Properly Document Market Research
How to Perform Market Research for Services
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Objectives
By the end of today’s course, you will be able to:
Understand what Market Research is
Understand the importance of Market Research
Explain who, how, and when Market Research is performed
Understand the types of Market Research and the process used for each
Describe the process for properly documenting the Market Research results
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What Is Market Research?
Market Research is one of the most important and often overlooked parts of the FAR (FAR Part 10)
Critical acquisition planning step
Integral to the entire acquisition life-cycle
Impacts requirements definition
Permits agency to determine whether CI or NDI are available
Permits agency to determine whether the requirement can be met by a required source (FAR Part 8) or other socio-economical source as described in FAR Part 19 and DFARS 219
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What Is Market Research?
Critical component in identifying the terms, conditions & practices appropriate for the items being acquired.
The extent of market research will vary, depending on such factors as complexity, urgency, estimated dollar value, and past experience.
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Market Research is the sum of two types/processes
Product characteristics
MARKET RESEARCH
Surrounding business practices
Suppliers’ capabilities
Continuous process of collecting & analyzing information about capabilities within the market to assist in problem solving and decision making and satisfy agency needs
Plus the analysis of that data to make acquisition decisions
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Investigation
Surveillance
Market Research
Socioeconomic opportunities
Market estimates
What Is Market Research?
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Market research is the continuous process of collecting and analyzing information about the capabilities within the marketplace to satisfy
current and future requirements.
Before initiating a procurement action, the customer must perform due diligence in assessing what products or services already exist.
Often the end user or other technical personnel perform basic market research related to product characteristics and capability. The
contracting officer/buyer should build on this knowledge by performing market research devoted to the capability of the market and
identifying any unique commercial terms in the marketplace.
Once a requirement has been screened, buyers will be able to determine if purchasing from required government sources, strategic sources, or via open market can satisfy the requirement. This in turn determines the market research required to complete the buy.
Why Is Market Research Important?
Notwithstanding the statutory and regulatory (FAR and DFARS) requirements in 2015, GAO completed a review of 28 DoD contracts, and determined that at least 50 percent of which had inadequate, inconsistent and unclear market research documentation
Failure to adequately perform and document market research results in lost efficiencies and savings
Market research should identify any “cost drivers” or other aspects of the requirement that could impact cost, schedule, or performance.
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Why Is Market Research Important?
To determine the practices of firms engaged in producing, distributing, and supporting commercial items, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking
To determine if required sources capable of satisfying the agency’s requirements exist to meet our requirements (FAR Part 8, DFAR Part 208)
To determine the extent to which commercial items or nondevelopmental items exist to meet our requirements, or can be modified to meet our requirements.
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Why Is Market Research Important?
Market research helps to expand the industrial base and bring in new and innovative methods of solving warfighter challenges.
Market research allows for small businesses to be considered on acquisitions and potentially help the command to meet its small business goals through the use of set-asides as referenced in FAR part 19 and grow the industrial base.
Market research assists in determining important aspects of the acquisition strategy such as small business participation, subcontract opportunities, and contract vehicles to consider.
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Why Is Market Research Important?
Market research allows for efficiencies to be gained in the acquisition timeline by revealing firms that could be sole sourced the work such as 8(a) companies; revealing firms that are working toward similar solutions in the R&D space through SBIR phase III opportunities.
Market research can also provide ways for determining what pitfalls might exist in an acquisitions strategy and provide evidence for decisions on things such as consolidation, bundling and potential for sole source utilization.
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Why Is Market Research Important?
Market research can often steer an acquisition due to acquisition considerations that are revealed during market research.
These consist of things such as NAICS codes, PSC codes, vendor availability, and ability. These areas play an essential role in the acquisition strategy development.
www.dau.edu/tools/t/Product-and-Service-Code-Selection-Tool
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When Is Market Research Performed?
Agencies must conduct market research “appropriate to the circumstances” (FAR 10.001):
Before developing new requirements
Before soliciting offers for procurements > Simplified Acquisition Threshold (SAT)
Before soliciting offers < SAT when adequate information is not available and circumstances justify the cost
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When Is Market Research Performed?
Before soliciting offers for an acquisition that could lead to a bundled contract
Before awarding a task or delivery order under an IDIQ (Governmentwide Acquisition Contracts (GWACs) and Multi-agency contracts (MACs)) for a noncommercial item > SAT
On an ongoing basis to identify the capability of small business/new entrants
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When Is Market Research Performed?
Market research can be broken down into two interrelated, but distinct, types: strategic market research and tactical market research
Strategic Market Research (market surveillance)
Continuous process that is begun early in the acquisition process
Broad study of the market and sources
It may take place even before an acquisition program exists and continue after it ends
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When Is Market Research Performed?
Enables acquisition, engineering, project management, and other personnel to stay informed about overall market developments, trends, and capabilities.
During strategic market research, any identified users’ requirements need to be kept in mind.
Tactical Market Research (market investigation)
Tactical market research is focused on answering specific questions about products, services, or capabilities in the market at specific points in the acquisition process
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When Is Market Research Performed?
Varies based on scope, criticality, and complexity of the product or service
These questions are derived from the requirements definition
Users’ requirements need to be continually considered when doing tactical market research
In early phases, both strategic and tactical market research can be used to shape the acquisition process
Early market research is particularly significant because it could have a major effect on how the program unfolds
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When Is Market Research Performed?
Done early in the acquisition process before the requirement is documented, market research, as indicated in FAR 10.001, makes it possible to compare the users’ requirements to the capabilities of the commercial market and to determine the following:
Availability of products to meet the requirements as-is
Ability of suppliers to modify their products to meet the users’ requirements
KO must determine in writing acquisitions exceeding $1M that item meets the CI definition (See PGI 212.102 DoD Guidebook for Acquiring Commercial Items, Part A: Commercial Item Determination)
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When Is Market Research Performed?
• Flexibility of the users to modify their requirements to allow the purchase of commercial items, commercial services, or nondevelopmental items
• Feasibility of undertaking a developmental program within cost and schedule constraints
• Such market research can be effective only with the understanding that comes from good up-front requirements definition.
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Properly Defined Requirements?
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Ex. Soldier electrocuted while taking a shower in a contractor maintained military facility.
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Cost/Price Analyst
Logistics Specialist
Technical Team
Finance
War-Fighter/End User
Legal Counsel
Program Manager
DCAA/
DCMA
The Acquisition Team
Contracting Officer
Contract Specialist
Purchasing Agent
Small Business
Who Performs Market Research?
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One Team Important to understand everyo9nes role in acquisition process and work together.
Rule of Thumb
The Technical Staff (i.e. engineer, scientist, and equipment specialist) is responsible for conducting the market research.
The program manager is responsible for ensuring the market research is conducted.
The contracting officer should not proceed with any acquisition unless adequate market research has been accomplished.
Who Performs Market Research?
There is no Market Research Department or Competency in the Government
Market Research process lends itself to a Team approach
Technical specialists from the requirements organization should have performed Market Research when defining the requirement
Market Research should be performed by representatives from: Contracting, Program Management, End Users, Engineering, Logistics, Legal, Finance, Cost Analysts, and Other IPT members
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How is Market Research Performed?
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Site Visits
Surveys
On-line Browsing and Communicating
Various Techniques
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Aspects to Consider When Performing Market Research
Whether commercial items are available to meet the requirement
Whether the Contracting Officer has a reasonable expectation of receiving at least two offers from responsible small businesses and award will be made at fair market prices
Whether there are Mandatory Sources identified in FAR Part 8 and DFARS 208
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Aspects to Consider
Federal supply schedule databases to include GSA, NIH, NASA SEWP, etc.
The use of FAR vs Non FAR acquisitions such as Other Transactions and determining non-traditional defense contractors, joint venture authority vested in the Department of Commerce (DOC) and "Commercial Solutions Opening" authority given to GSA
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Aspects to Consider
The ability to use a SBIR and STTR to researching new and innovative technologies if it is an R&D requirement
Understanding the supply chain around the requirement to analyze things such as the non-manufacturers rule and how Cybersecurity requirements such as (CMMC) might impact the acquisition strategy and potential teaming arrangements
Determine the historical aspects of the proposed procurement to determine if there will be pitfalls in the acquisition strategy due to consolidation or bundling
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How is Market Research Performed?
Market research sources and techniques:
Knowledgeable industry and Government experts
Historical acquisitions for similar or identical requirements
Government databases
Internet searches
Sources Sought/Request for Information/Unsolicited Proposals
Source lists
Market surveys
Industry days
Contractor catalogs, trade journals, data specifications, product brochures, advertisements, conferences
Trade Associations
Sam.gov
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How is Market Research Performed?
Market Research Sources and Techniques for Small Business:
Dynamic Small Business Search (DSBS) is a database that government agencies use to find small business contractors for upcoming contracts. https://web.sba.gov/pro-net/search/dsp quicksearch.cfm
PTACs and Small Business development centers identify small business entities and their respective capabilities and assist agencies in shaping market research.
Contracting Officer’s can elect to set aside a Task Order solicitation under a multiple award IDIQ contract such as GSA, NIH, NASA SEWP, Seaport
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How is Market Research Performed?
Guiding Principles for Conducting Market Research
Start early
Refine as you proceed
Tailor the investigation
Repeat as necessary
Communicate with all stakeholders throughout the process
Involve the Users
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Strategic Market Research
Steps to Conducting Strategic Market Research
Identify Market Research objectives
Identify the market/market segment
Identify the source of information
Collect relevant market information
Document the results
Tailored for each supply class or technology area
Should contact users for tradeoff considerations
Trade journals, personal contacts with users and manufacturers, and automated databases are good sources of information
Identify and utilize SBDCs, PTACs, HUBZone associations, 8(a) associations, AFCEA SB chapters
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Types of Market Research
Strategic Market Research (Surveillance)
– Involves a broad study of the market
– Ongoing throughout the process
– Conducted to stay informed about overall market developments, trends, and capabilities
• Tactical Market Research (Investigation)
– Activities to gain understanding of the market
– Conducted at specific points
– Answers specific questions about capabilities, products, or services
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Strategic Market Research
Strategic Market Research Sources (Surveillance)
Other Government Agencies and Users
Military and non DoD
Grants.gov (Labs)
Contracting Resources
Sam.gov
Previous RFI’s/RFP’s and contract award announcements