1. The Acquisition Institute Inc. Presents Market Research For Technical Personnel 4 Hours = 4 CLP credits available at: www.AcquisitionInstitute.com

2. 2 Market Research Policy (FAR 7, 10, 11 Overview) Small Business Policy (FAR 19 Overview) Commercial Item/Services Discussion (Upside & Downside) Market Research Goals Process Steps & Process Guide Overview Techniques/Tool Kit Overview Industry Day Risk Assessment Workshop Discussion Participants (Roles and Responsibilities) Tools Documentation (Market Research Report Walkthrough) Search Engines Overview (NAICS Code Discussion) Website Search Demonstrations (No Yahoo or Google) Market Research Topics

3. 3 Training Objectives Objectives Review Policies Requiring Market Research And The Government Mandate To Conduct Market Research Explain The 6-Step Market Research Process Identify Tools and Resources Available for Conducting MR Projects

4. 4 Federal Acquisition Streamlining Act (FASA) of 1994 required Government to: Buy commercial items, commercial services, and non- developmental items to meet agency needs, Require prime contractors and subcontractors at all levels to incorporate commercial and non-developmental items as components of systems they develop for federal agencies, State specifications in terms that enable and encourage companies to supply commercial and non-developmental items, and Revise procurement policies, practices, and procedures— not required by law—to remove impediments to the acquisition of commercial items. Market Research Policy

5. 5 FAR - Part 10 Market Research it be conducted: Before developing a new requirements document Before soliciting offers for acquisitions with an estimated value in excess of $150,000 Before soliciting offers for acquisitions with an estimated value less than the SAP threshold when adequate information is not available and the circumstances justify its cost; and Before soliciting offers for acquisitions that could lead to a bundled contract (15 U.S.C.644(e)(2)(A)) Before awarding a task or delivery order under an IDIQ contract. Market Research Policy

6. 6 FAR - Part 7 Acquisition Planning FAR 7.102: Requires market research for all acquisitions; promotes and provides for acquisition of commercial items/services and full and open competition FAR 7.105: Requires Acquisition Plans to address extent, results, and impact of market research FAR 7.107: Requires market research to determine necessity and justification for bundling (“measurably substantial benefits”)

7. 7 Market Research Policy FAR - Part 11 Describing Agency Needs 11.002 Policy. (a) In fulfilling requirements of 10 U.S.C. 305(a)(1), 10 U.S.C. 2377, 41 U.S.C. 253a(a), and 41 U.S.C. 264b, agencies shall: (1) Specify needs using market research in a manner designed to: (i) Promote full and open competition or maximum practicable competition when using simplified acquisition procedures, with due regard to the nature of the supplies or services to be acquired; and

8. FAR – Subpart 19.5 Set-Asides for Small Business RULE OF TWO The contracting officer shall set aside any acquisition over $150,000 for small business participation when there is a reasonable expectation that (1) offers will be obtained from at least two responsible small business concerns offering the products of different small business concerns and (2) award will be made at fair market prices. 8 Small Business Policy

9. 9 FAR – Subpart 19.201 General Policy Small Business Opportunities It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.

10. 10 FAR - Part 12 Acquisition of Commercial Items Scope of Part. This part prescribes policies and procedures unique to the acquisition of commercial items. It implements the Federal Government’s preference for the acquisition of commercial items contained in Title VIII of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355) by establishing acquisition policies more closely resembling those of the commercial marketplace and encouraging the acquisition of commercial items and components. MUST BE FIRM FIXED PRICED ACQUISITIONS Market Research Policy

11. 11 Commercial Item Terms and Definitions Commercial Off the Shelf (COTS) Items of a type customarily available in the commercial marketplace; Commercial items that have had minor modifications to meet Federal Government requirements. Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed under standard commercial terms and conditions. A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local government Terms & Definitions

12. Commercial Items/Services Upside to Commercial Acquisitions Utilization of streamlined acquisition (per FAR Part 13) Bulk of the non-recurring engineering charges have already been paid by someone else, and design verification testing is complete. Systems are deployed and operational testing complete. Production lines are already established and mature. Quality control measures have typically undergone several iterations of process improvement events. Most commercial acquisitions have existing logistics support infrastructures. Technological innovation is inherent in product design due to market share demands. 12

13. Commercial Items/Services Downside to Commercial Acquisitions Acquisition Teams are not entitled to certified cost and pricing data leaving it up to them to determine fair and reasonable pricing. Could potentially lose configuration control. Could lead to dependency on sole source prime vendor if fleet consistency is a requirement. 13

14. 14 Market Research Policy FAR - Part 8 Required Sources of Supplies/Services 8.000 Scope of Part….This part deals with the acquisition of supplies and services from or through Government supply sources. 8.001 General… Regardless of the source of supplies or services to be acquired, information technology acquisitions shall comply with capital planning and investment control requirements in 40 U.S.C. 11312 and OMB Circular A-130. 8.002 Priorities for Use of Government Supply Sources.(a) Except as required by 8.003, or as otherwise provided by law, agencies shall satisfy requirements for supplies and services from or through the sources and publications listed below in descending order of priority …..

15. 15 Market Research Process Market Research - A continuous process for gathering data on product characteristics, suppliers’ capabilities and the business practices that surround them (customary terms and conditions, including warranty, buyer financing, and discounts under which commercial sales are made, etc.) – plus the analysis of that data to make acquisition decisions. Includes two components: Market Investigation Market Surveillance/Intelligence

16. 16 Market Investigation is a comprehensive survey of the market place to gather information in response to a specific contract requirement. Market Surveillance/Intelligence is an ongoing process and includes all the activities that acquisition personnel perform continuously to keep themselves abreast of technology improvements, product developments, and commercial business practices relative to their areas of expertise. Data gathered during Market Surveillance/Intelligence activities are very beneficial for tailoring operational requirements to take advantage of commercial item products and services which already exist in the market place. Market Research Process

17. 17 Market Research is the sum of two processes Product characteristics MARKET RESEARCH Surrounding business practices Suppliers’ capabilities CONTINUOUS PROCESS FOR GATHERING DATA Plus the analysis of that data to make acquisition decisions + Surveillance Investigation Market Research Process

18. Gathering Market Research Data * Availability *Technology * Specs/Standards * Integration/Open Systems * Impact * Quality Assurance * Market Prices * Services Business Practices; Terms/Conditions Source Capabilities Product/Service Characteristics * Competition * Size * Production * Distribution * Support * Management Consistency * Team: Maturity Stability Availability * Warranties * Financing and Discounts * Marking and Packaging * Inspection and Acceptance * Price data * Insured/Bonded/ Licensed * Govt Leverage * Payment Supportability/ Sustainment *Obsolescence *Cycle time *Equipment *Technical Data *Parts availability *Impact of Replacement Items

19. 19 Market Research Goals Expand Use Of Commercial Item Solutions And Commercial Practices Expand Use Of Non-developmental Item Solutions Identify Innovation and Emerging Technologies Address Current Obsolescence Issues Assist In The Development Of Your Acquisition Strategy: Tailor Your Contract Terms And Conditions Identify Small Business Opportunities Promote Best Value Acquisitions Provide A Good Understanding Of The Market Sector

20. 20 Market Research Process Steps Define Your Requirement Review Historical Data (Summarize Current Market Surveillance Data) Develop Your MR Strategy Assign Roles and Responsibilities Identify Available MR Tools to be Used Conduct MR Activities Consistent With MR Strategy Survey the Marketplace (Gather the Data) Identify Sources Evaluate products, services and capabilities Document Your MR Results and Findings Archive the MR Report Share Your MR Data Identify Lessons Learned Use the Report to support your Acquisition Strategy

21. 21 Market Research Techniques Update Past Market Research Review Similar Market Research Reports on File Issue Surveys and Questionnaires (Sources Sought & RFI) Conduct Site Visits Perform Internet Searches (using Google or Bing) Host Industry Days Contact Small Business/Source Development Office Review Trade Journals Contact Professional Societies Attend Trade Shows Cold Calling (Yellow Pages) Contact Professional Contacts

22. Industry Days Early Issues and Strategy Session with Industry Top Down Review of Proposed Acquisition Approach Excellent Opportunity to Review Technical Requirements (i.e. Draft PWS, SOW, Tech Maturity, Production) Review Shared Risks with Contracting Strategy Involve your customers Encourage Feedback (i.e. Draft PR Review) Result: Identify Major Issues, Risks, Action Items One-On-One Sessions (Focus on Acq. Strat) 22 Industry Days

23. 23 Example Market Research Program Buying a new car: Look at brochures (Commercial Data Specifications) Visit Dealerships (Site Visits) Attend car shows (Trade Shows) Ask friends, relatives, coworkers (Contacts) Read ‘Consumer Reports’ for best buys and most reliable cars (Trade Journals) Conduct an Internet Search (Market Survey) Yellow pages: Look up dealers in your area Ask dealers about financing plans, discounts, warranties, options, etc. (Terms and Conditions)

24. 24 Buying a new car: You performed market research by... …gathering and analyzing information about the capabilities of the new car market to satisfy your car needs. BUYING GOODS AND SERVICES FOR THE GOVERNMENT IS NOT MUCH DIFFERENT. Example Market Research Program

25. 25 Who Does Market Research Cost/Price Analyst 1102 Logistics Specialist Technical SME Team Finance Legal Counsel Program Manager CUSTOMER The Acquisition Team Contracting Officer 1102 Small Business

26. 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. The Competition Advocate is available to assist everyone. Who Does Market Research

27. 27 Market Research Reports Local Policy requires all reports be dated, clearly identify the author and have a signature block for the contracting officer and program manager. FAR 10 states that agencies “should document their market research in a manner appropriate to the size and complexity of the acquisition.” A copy of the market research report should be placed in the contract file as a matter of record. The technical team should maintain a copy for their files to share with other teams and to provide a starting place for future acquisitions. Market Research Report Templates?

28. 28 Start early Review historical data Involve industry & your users Communicate as a team Develop MR strategy Think of market research as an iterative process Review your draft report with major functionals before processing the final PR package Share the results Key Elements Of Success

29. 29 Market Research References FAR Part 2, Terms and Definitions FAR Part 7, Acquisition Planning FAR Part 10, Market Research FAR Part 11, Describing Agency Needs FAR Part 12, Acquisition of Commercial Items FAR Part 13, Simplified Acquisition Procedures Hill Website: http://farsite.hill.af.mil/ Google or Bing Thomas.net

30. 30 MARKET RESEARCH WEBSITES Search Engines

31. 31 Mark’s Top Five Contractor Central Registration http://www.ccr.gov Government search engine which provides access to Small Business Administration Search Engine. GSA Advantage https://www.gsaadvantage.gov Government search engine with millions of products and services loaded into their database. Products and services are arranged in common schedules and a GSA contracting officer is assigned to each schedule. Businesses are easily identified by large, small or 8a classifications. Thomas Register http://www.thomasnet.com/ Comprehensive online resource for finding companies and products manufactured in North America. Test Mart http://www.testmart.com/ Excellent search engine for commercial test equipment and accessories. Provides detailed specifications and performance requirements on most products. GSA Global Supply (FAR 8 Search) https://www.gsaglobalsupply.gsa.gov Enables search by NSN. GSA Global Supply is your one-stop source for all your military and agency support needs, from new Tools and Fire Fighting equipment to Office Supplies. EBUY GSAhttp://ebuy.gsa.gov/ Enables you to perform Requests for Information pulling data from GSA Advantage’s database. Search Engines

32. 32 Search Engines Parts And Components Locators Electronic Engineers Master http://www2.eem.com/ Excellent resource for electronic component information arranged by product type. Global Spec http://www.globalspec.com/ Search engine for commercial products and services. Access to vendor catalogs and product specification sheets. Information is sorted by product categories. Internet Part's Locator http://www.ipls.com/ Enables search by NSN. Worldwide aviation spare parts availability and online repair capabilities. IPLS.com enables you to search all our databases, request a quote from one of the listing companies, post messages to the aviation specific newsgroups, and be part of on-line discussion groups. ISO Parts Enables search by NSN http://www.iso-parts.com/Default.aspx Aviation Spare Parts. DoD Emall http://www.dlis.dla.mil/emall.asp Enables search by NSN. DOD EMALL is an Internet based Electronic Mall, which allows military customers and other authorized government customers to search for and order items from government and commercial sources. DOD EMALL is a Department of Defense program operated by DLIS. All users are required to register and be authenticated and authorized by a DLIS Access Administrator. WBParts http://connectors.wbparts.com/ WBParts sells aircraft connectors and military connectors to including connector receptacles, backshells, plugs, sockets, adapters, covers and clamps.

33. 33 Search Engines Miscellaneous Search Engines NAICS Codes and Titles http://www.census.gov/epcd/www/naicscod.htm The North American Industry Classification System (NAICS) is replacing the U.S. Standard Industrial Classification (SIC) system. NAICS will reshape the way we view our changing economy. NAICS identifies hundreds of new, emerging, and advanced technology industries. And NAICS reorganizes industries into more meaningful sectors--especially in the service-producing segments of the economy. SuperPages http://www.bigyellow.com/ http://www.yellowpages.com The Super Yellow pages provides a search engine for identifying business locations and point of contact information for vendors in North America. Recommend this search engine for market surveillance type activities. Better Business Bureau http://www.bbb.org/ The name says it all. Good resource for past performance information on vendors. Open Directory Project (HotSheet) http://www.hotsheet.com/dmoz Huge database search engine with a wide range market sectors with one specifically dedicated to the Aerospace and Defense market sector. Business.Com http://www.business.com/ Commercial database search engine covering a wide range market sectors. Supply View. COM http://www.supplyview.com/ SupplyView.com contains an Interactive database of more than 30 billion parts with over 10,000 registered Franchise and Independent distributor members.

34. 34 Search Engines Tips & Tricks If you know the previous vendor on your follow-on contract, you can search their company profiles for their NAICS Codes and then use their NAICS code to look for competitors. You can search GSA Advantage for labor rate categories for various locations throughout the USA and GSA Ebuy for performing RFI’s Search Google Maps (Satellite Mode) with business address to see if it is located in an industrial park or a residential area. You can search Yahoo or Google by part number to find after market sources. Search Yahoo Finance or Dun & Bradstreet for current market business information about a specific company. Search Engines

35. The End Take the Exam And retrieve your Certificate