1. Conducting Market Research Teresa Anthony Rex Elliott November 23, 2004

2. Presentation Overview Introduction What is Market Research? Elements of Market Research (FAR Part 10.001) Recommendations Conclusion Helpful Websites Q&A

3. Definitions – FAR 2.101 Market Research – Collecting & analyzing information about capabilities within the market to satisfy agency needs. Non-developmental Item – Previously developed supply item (or developed item not yet in use) used exclusively for government purposes and requiring only minor commercial-type modification to meet the requirement.

4. Definitions – FAR 2.101 Commercial Item: –Item of a type customarily used for non-governmental purposes and currently available to the general public. –Evolving item will be available to satisfying delivery requirements. –Modified item would be available. –Commercial item combination/package available to the public. –Services in support of commercial items –Other services of a type based on established catalog or market prices for specific tasks. –A Commercial Item retains its identify

5. What is Market Research? Tool to determine what is available one the market to meet a specific need and the terms & conditions customarily used in the commercial market for the item or service being procured. Federal Acquisition Streamlining Act of 1994 (FASA) prescribes market research as a critical component in describing the agency needs, developing an overall acquisition strategy, & identifying the terms, conditions, & practices appropriate for the items being acquired.

6. Market Research contd FAR Part 10.001 requires: Before developing new requirements documents. Before soliciting offers above the Simplified Acquisition Threshold (SAT) ($100k) & Before soliciting offers below the SAT when adequate information is not available. FAR Part 10 aids Option exercises & Sole Source Contract Action

7. Purpose of Market Research Determine if NASAs need can be met by a commercial item, a modified commercial item, or item used exclusively for Governmental purposes. Market Research should also consider customary practices regarding modifying items for customers, warranties & licenses, buyer financing, etc. Can help obtain best price/best value for the government. (Options) Identify successful acquisition strategies

8. Why Perform Market Research? Its the law (FASA of 1994) Buy commercial/NDI to satisfy agency needs Require primes and subs to incorporate commercial items in systems State requirements in terms that encourage suppliers to offer commercial items Remove impediments to the acquisition of commercial items. And its smart

9. Failure to Perform Market Research Can result in: Sub-optimum descriptions of requirements Protests of sole source or limited competition acquisitions. GAO could order re-competition and payment of bid and proposal costs. Contract Administration Problems The government could miss out on the newest & best technology or services.

10. How much market research is enough? The extent of market research will vary, depending on such factors as complexity, urgency, estimated dollar value, & past experience.

11. Who performs the market research? Joint technical & procurement collaboration SBA specialist & resource analyst also provide some feedback.

12. Techniques for accomplishing market research Contact knowledgeable people within Government and industry. Review recent market research for similar items. Publish formal requests for information (RFI). Query Government and commercial databases. Obtain source lists for similar items from other organizations. Commercial catalogs and other products literature. Conduct interchange meetings or presolicitation conferences with potential vendors. Internet

13. Why Should Industry Help Government Do Market Research Helps Government avoid mistakes Helps industry understand Government requirements better Allows communication with Government before formal acquisition rules apply (marketing opportunity)

14. Results If one commercial item or source is found, procurement proceeds in accordance with FAR Part 12 – Acquisition of Commercial Items If commercial item is not found, requirement should be reviewed to see if it can be restated to permit commercial item. If FAR Part 12 is not used, the synopsis should include the numbered note of FAR 5.207 (f) (4) that the Government will not be using Part 12.

15. Documentation – FAR 10.002(e) Agencies should document the results of the research in a manner appropriate to the size and complexity of the acquisition. The documentation should summarize the activities taken by the responsible parties. No particular format required – Matter of judgment based on urgency, complexity, $ value, existing knowledge and logical organization. A market research report template can be found in the Virtual Procurement Office (VPO). (optional)

16. Topics in Market Research Documentation Summary of acquisition background Identification of market research team Description of agencys needs Desired or required schedule for the delivery of the end items. Explanation of the list of potential suppliers Summary of industry sources Customary commercial terms, provisions, and conditions Price ranges The Market Research (including summary of available commercial or nondevelopmental items.)

17. Recommendations Start early Involve users Communicate Market research is ongoing Tailor the investigation Refine as you proceed Document, document, document! More training

18. Helpful Web Sites http://www.arnet.gov/References/fssciate.html-An anthology of commercial terms & conditions, featuring info from a number of Americas largest companies. http://www.arnet.gov/References/fssciate.html-An http://procurement.nasa.gov/cgi-bin/cci/first.cgi - Consolidated Contracting Initiative (CCI) http://procurement.nasa.gov/cgi-bin/cci/first.cgi http://bls.gov/ppiover.htm - Producer Price Index from the Bureau of Labor Statistics http://bls.gov/ppiover.htm http://fpdc.gov/fpdc/fpdc_home.htm - Federal Procurement Data Center http://fpdc.gov/fpdc/fpdc_home.htm www.gsaadvantage.gov – GSA www.gsaadvantage.gov

19. Helpful Sites www.thomasregister.com – Industrial Suppliers Company Guide www.thomasregister.com www.imart.org – Search engine for sources (Aircraft, Chemicals, Computers & Electronics, Office Equipment, etc.) www.imart.org http://www.stat-usa.gov – STAT-USA/Internet is a Government opportunities which replaced the Commerce Business Daily http://www.stat-usa.gov http://www.napm.org – National Association of Purchasing Management http://www.napm.org

20. Conclusion Performing market research is a logical process that, if planned, can provide the information you need to generate requirements & locate sources & information on alternative commercial products, services, & practices. Conducting market research up front may take time and effort we may initially feel too busy to spend; however, the benefits down the road in terms of a smoother, faster buy with fewer performance problems makes it more than worthwhile.

21. Q & A