For example, when planning the acquisition of a new information technology (IT) system, DoD acquisition personnel receive the user's requirements for the system's performance, and sometimes the requirements are incompatible with each other or conflict with other systems. Through trade studies, market research can help users sort out what requirements can be ful- filled, what requirements can be fulfilled within cost objectives, and what requirements can be fulfilled given schedule constraints. By addressing all of these issues, market research allows the user to make informed decisions about the tradeoffs among all of the alternatives. Users who fail to consider these issues when defining the requirements risk investing in a system that may encounter technical difficulties during manufacturing or operation, have long production lead- times, and be excessively costly to produce, operate, and support.
DoD personnel involved in the acquisition process also need to use market research to opti- mize the potential use of commercial items, commercial services, and nondevelopmental items to meet agency needs. DoD no longer relies extensively on government-unique products and services to meet its needs. Commercial products and services are increasingly the preferred choice when DoD (and the Federal Government in general) makes purchase decisions.This re- liance on commercial products and services is due not only to the acquisition regulations, which encourage the use of commercial products and services, but also to business reengineer- ing and outsourcing. DoD is focused on its core mission, national defense, with many support- ing functions being handled by commercial firms.
In the service arena, many tasks that were once performed by DoD civilian or military per- sonnel, such as maintenance and repair, logistics, and management support, are now performed by commercial contractors. In fact, the Federal Government, including DoD, awards more con- tract dollars each year for services than it does for products. Market research is essential for defining service requirements and learning about the capabilities of commercial firms to pro- vide these services.
For many products, DoD research and development (R&D) no longer leads the commercial market.With the rapid technical advances occurring in the commercial marketplace, it is vital for DoD to understand those markets, identify the sources, and insert those technologies into weapons systems. In a global marketplace where all nations have access to the same technology, the military advantage will belong to those who can identify and capture state-of-the-art tech- nology, get it into weapons systems, and successfully field those systems first. Using commercial products in weapons systems will also lower acquisition costs and shorten development time. Market research plays a critical role in identifying commercial products and sources.
In today's dynamic acquisition environment, in which use of commercial products and serv- ices is increasingly important and necessary, market research is a process used for doing the fol- lowing:
• Understanding commercial markets, competitive forces, and potential sources
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