SD-5 Market ResearchThe purpose of this document is to provide DoD and other Federal personnel involved in the acquisition process with practical guidance on using market research to ensure the acquisition of products and services that will best serve the government??s needs. Specifically, this document is designed for personnel involved with establishing requirements for products or services, such as engineers, technical specialists, project officers, and customers; personnel involved with purchasing products or services, such as contracting officers, contract specialists, and cost analysts; and personnel who support the acquisition process, such as logisticians, testing and quality assurance specialists, and legal counsel.

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Federal statutes found in the United States Code (U.S.C.)-41 U.S.C. 253a(a)(1), 41 U.S.C.

264b, 10 U.S.C. 2377, and 15 U.S.C. 644(e)(2)(A)-and implemented by FAR Part 10, Market

Research, require agencies to conduct market research under the following circumstances:

•  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 com- mercially available market research methods, to identify the capabilities, including the capabilities of small businesses and new entrants into Federal contracting, that are available in the marketplace for meeting agency requirements in furtherance of a contingency operation or defense against or recovery from a nuclear, biological, chemical, or radiologi- cal attack.

In addition, FAR Part 12, Acquisition of Commercial Items, requires that market research be conducted to determine the availability of commercial items or nondevelopmental items that could meet the requirements.This regulatory guidance implements the Federal Government's preference for the acquisition of commercial items contained in Title VIII of the Federal Acqui- sition Streamlining Act of 1994 (Public Law 103-355).

The above requirements apply to all Federal agencies. For DoD, the Defense Federal Acquisition Regulation Supplement (DFARS), Subpart 210.001, adds two additional circum- stances under which market research is required:

•  Before soliciting offers for acquisitions that could lead to a consolidation of contract requirements as defined in DFARS Subpart 207.170-2

•  Before issuing a solicitation with tiered evaluation of offers (Section 816 of Public

Law 109-163)

Even if market research was not required by law and regulation, it would be a smart business practice to follow. 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.

Market research plays a key role in the requirements determination and definition process.

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