Question

Select a contracting subject pertaining to the FAR Sections covered in this class (e.g., improper business practices, acquisition processes, market research, contractor qualifications, competition, commercial items, warranty, inspection/acceptance, changes, terminations, etc.).

Answer 1

MARKET RESEARCH

Market research is a continuous process of collecting and analyzing data on product, services, demand, business practices and vendor capability to satisfy agency needs. Market research means knowing about the market so that suitable decisions and choices about the acquisition of goods and services can be made.

Market research is the base for building any successful contract. It is in part 10 of Federal Acquisition Regulation (FAR). This part describes the procedure and policies for conducting market research for acquiring, distributing, and supporting supplies and services.

10.001

(a)1. Agency shall ensure all the legal need are identified.

(b)2. Market research to be done in the situations like:

          (i) Before developing new required documents for acquisition.

         (ii) Before giving offers for acquisition with an estimated value more than simplified acquisition threshold.

          (iii) Before giving offers for acquisition with an estimated value less than simplified acquisition      threshold.

      (iv) Before giving offers for acquisition that can get consolidate.

      (v) Before awarding a task under an indefinite –delivery/ indefinite –quantity contract for non commercial item.

       (vi) On a continuous basis , should take advantage of commercially available market research method in order to identify the capabilities of small business.

3. Using the result of market Research to:

      (i) To determine if the commercial item suitable to meet agency’s need are not available and all the developmental items that are available to meet agency’s requirement , or can be modified to meet their requirement.

(ii) to determine if the sources exist or not that are capable to satisfy the agency’s need.

(iii) to determine the extent in which the commercial items can be involved at the component level.

(iv) Determine the practices of firms engaged in producing, distributing, and supporting commercial items.

(v) to ensure maximum practicable use of recovered materials.

(vi) to determine whether consolidation and bundling is necessary and justified.

(vii) to ensure maximum usage of resources for promoting energy conservation and efficiency.

10.002 PROCEDURES:

(a) Acquisition begins with a description of a government need stating the need for market research.

(b) Market research is then conducted to determine if the commercial items are adequate to meet the need of government.

(c) If market research indicate commercial items are not available to satisfy the agency need , then the agency should revaluate.

(d) agency should document the result of the market research in a appropriate manner in regard to the acquisition.