Market Research and ProTech

WHAT IS MARKET RESEARCH? As defined in the Federal Acquisition Regulation (FAR 2.101) market research means; collecting and analyzing information about capabilities within the market to satisfy agency needs. Market research is essential for optimizing the potential use of commercial items, commercial services, and non-developmental items to meet NOAA needs. If needed under ProTech, early communication with potential providers of products and services, provides NOAA acquisition workforce with the opportunity to implement completely new approaches to achieve the required mission outcomes and performance requirements. As defined in the Federal Acquisition Regulation (FAR 2.101) market research means; collecting and analyzing information about capabilities within the market to satisfy agency needs. Market research is a continuous process designed to gather data on products and services, market capabilities, and the business practices associated with them. The data is used to evaluate trade-offs among the various ways of meeting organization requirements. Market research is essential for optimizing the potential use of commercial items, commercial services, and non-developmental items to meet NOAA needs. Early communication with potential providers of products and services, provides NOAA acquisition workforce with the opportunity to implement completely new approaches to achieve the required mission outcomes and performance requirements.

RESEARCH REQUIREMENT FAR 10.001(a)(2)(v) states: That market research is to be conducted "Before awarding a task or delivery order under an indefinite-delivery-indefinite-quantity (ID/IQ) contract (e.g., GWACs, MACs) for a noncommercial item (emphasis added) in excess of the simplified acquisition threshold..."  Under ProTech, new strategic market research is not required; however, tactical market research is required. The reasons for performing market research include the following: Mandated by law - Federal Acquisition Regulation (FAR) Part 10, Market Research, require agencies to conduct market research under the following conditions: Before developing new requirements documents for an acquisition Before soliciting offers for acquisitions with an estimated value in excess of the simplified acquisition threshold 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 Before soliciting offers for acquisitions that could lead to a bundled contract On an ongoing basis, and to take advantage to the maximum extent practicable of commercially available market research methods, Good business practice - Market research is a commercial business practice, used by firms to identify trends, customer needs and wants, competitor practices, and sources for their purchasing needs. Defines requirements and processes - assists users in identifying what requirements can be accomplished within given cost objectives and schedule constraints. Commercial optimization - Market research is essential for defining service requirements and learning about the capabilities of commercial firms to provide these services.

STRATEGIC MARKET RESEARCH TACTICAL MARKET RESEARCH V The overarching process of market “surveillance” that will take place continuously throughout the entire acquisition lifecycle. The goal of strategic market research is to develop a base of knowledge about the market area of interest and its products or services. Is conducted during the instant acquisition process to answer specific questions about the market, suppliers, products, and services, in order to shape the acquisition strategy. Strategic market research involves a broad study of the market and sources, whereas tactical market research is focused on answering specific questions about products, services, or capabilities in the market.

Frame ProTech Requirements WHERE TO START Define requirements Consider results of previous market research Identify acceptable risk and trade-offs Identify the appropriate ProTech domain Frame ProTech Requirements Define requirements - Constraints, demands, necessities, needs, or parameters that must be met or satisfied, usually within a certain timeframe. Consider results of previous strategic and tactical market research - to increase understanding of the historical and instant requirement, and feasibility of approach. Identify acceptable risks and trade- offs - estimating the magnitude of identified risks associated with the desired outcomes, and evaluate and implement appropriate transfer and/or financing mechanisms for losses that are beyond the declared risk tolerances. Identify the appropriate ProTech domain that has capability to satisfy your requirement.

TACTICAL MARKET RESEARCH Be thoroughly familiar with the government requirements in order to describe the needed service to prospective sources and to evaluate the service offerings of different firms. Understand what distinguishes the various levels of service (i.e., basic, standard, and premium) Describe the minimum performance standards expected along with the acceptable quality level establishing the maximum allowable error rate or variation from the standard. Tactical market research is designed to provide in-depth information to answer specific questions about the capabilities, products, or services available in the market. These questions are derived from the requirements definition. Its important to know the requirement intimately. Levels of services can vary greatly and may be customized for the task required. The details of what is included in the service needs to be understood so that a relative comparison can be made to the services/capabilities from different companies to the amount and kind of service that is appropriate to the needs and desires of the client. The level of service is different from evaluation criteria or past performance criteria. It’s the requirement “what” rather than the “how” or “how well” that goes into determining the minimum performance standard. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost, and can be defined in a number of ways, including by the time taken to respond to a particular problem defect or request. There may be multiple response times and remedies depending on the intervention parameter and the importance to the client.

Review the Domain contract information against TO SOW MARKET RESEARCH STEPS Review the Domain contract information against TO SOW Engage the ProTech Account Manager to review Capabilities Matrix, if needed Use the following techniques only when necessary to enhancement the research Requiring activities should review the ProTech webpage, and contract information for the domain relevant to the stated requirement. Access to some proprietary information (Capability Matrix) may be limited and require engagement of the Domain Account Manager. For more complex/unique requirements, additional market research may be required. Using any of the techniques on the next slide, may produce valuable feedback from potential ProTech contractors on how to best to tailor the acquisition and use ProTech sources. The Account Manager can also assist in these processes.

COLLECT INFORMATION FROM SOURCES Search the ProTech contractor's websites Contact a ProTech contractor representative Prepare a formal survey or questionnaire Review on-line contractor ProTech literature COLLECT INFORMATION FROM SOURCES Hold presolicitation conferences to discuss planned requirements with ProTech contractors Circulate draft statements of work, and requests for proposals for comment by potential ProTech contractors Feedback from the actual users to assess how well the service was performed in the past and to identify any issues.

EVALUATE THE INFORMATION Capture relevant information from research Discuss with team members and stakeholders Compare findings to requirements to help determine ProTech applicability.

RESERVE CONSIDERATION First Consideration – Socio-Economic Set-Aside CD-570 Review Engage NOAA SBO Second Consideration – Small Business Set-Aside Engage NOAA SBO/SBA PCR

EVALUATE THE INFORMATION Capture relevant information from research Discuss with team members and stakeholders Compare findings to requirements to help determine ProTech applicability. Proper evaluation and documentation of market research is critical for supporting procurement decisions.

MARKET RESEARCH REPORT The ProTech Website has a template for documenting market research results. Follow the template guidance for preparing the report. The following topics should be addressed in the report: Background for the market research effort Time frame the market research was conducted Team members and other stakeholders involved in the market research Description of the requirements Estimated time frame or schedule for the requirement Summary of strategic market research findings Summary of the scope of the market research effort, including the questions to which answers were sought, the information requested from potential sources, and methods used to obtain data Results should be thoroughly documented so as to provide a ready source of information for follow-on and related procurements. Documentation also provides acquisition professionals a trail of information that can assist them with other market research efforts. FAR Part 10 requires that market research be documented; however, it does not mandate a standard format for documenting market research results. Follow the agency or program's guidance for preparing the report.

MARKET RESEARCH REPORT Document the results of the market research in a manner appropriate to the size and complexity of the acquisition Benefit: Provides a historical record Provides market research teams investigating similar services with information Provides documentation that may be used to further determine appropriate contract terms and conditions

SUMMARY Learn more than what is already known Inform strategic decision-making throughout the acquisition planning phase Influence tactical decision-making throughout the procurement execution phase Market research increases knowledge of the market, buyers, sellers and users increases the likelihood of a successful outcome. Leveraging market research, the goal is to not only effectively respond to the demand of the client, but to also give clear expression and thereby fulfillment of the desired mission outcome. As an acquisition team continues to learn more than what they knew before through the market research process; market intelligence should actively challenge, influence and change initial thoughts, observations, and planning decisions. If new learning occurs via the market research process, but it is not used to evolve the original procurement strategy, a lost opportunity to connect the clearest understanding of customer requirements with the smartest buying experience, maximized supplier capability, and marketplace intelligence.

For additional questions contact protech.services@noaa.gov For POC information visit http://www.protechservices.noaa.gov/contacts.php