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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•  Finding solutions that satisfy agency requirements

•  Identifying opportunities for using commercial items or services to meet agency needs

•  Determining whether commercial products or services can be modified or adapted to meet the special needs of an agency

•  Determining the availability of other nondevelopmental items to meet agency require- ments (see SD-2, Buying Commercial and Nondevelopmental Items:A Handbook)

•  Understanding product cycles and the way new technology is introduced into commercial products

•  Developing product descriptions, statements of work, and statements of objectives that allow companies to offer their commercial products and services in consonance with commercial practices

•  Shaping acquisition strategies, requirements, and tradeoffs

•  Understanding the costs of various alternatives

•  Developing support and test plans that accommodate commercial practices

•  Determining the extent to which commercial markets can support other Federal Government objectives, such as providing opportunities for small and disadvantaged busi- nesses, meeting environmental goals, and using domestic sources

•  Crafting solicitation and contract terms, conditions, and evaluation factors that recognize commercial business practices and encourage competition.

When Is Market Research Done?

The answer to this question depends on the type of market research, as well as the type and complexity of the acquisition. Market research can be broken down into two interrelated, but distinct, types: strategic market research (market surveillance) and tactical market research (mar- ket investigation). 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. Both types of market research are discussed in more detail later in this document.

Strategic market research is conducted continuously throughout the acquisition process. It may take place even before an acquisition program exists and continue after it ends. Strategic market research enables acquisition, engineering, project management, and other personnel to stay informed about overall market developments, trends, and capabilities. During strategic mar- ket research, any identified users' requirements need to be kept in mind.

Tactical market research is conducted at specific points during the acquisition process, which will vary with the scope and complexity of the acquisition.Tactical market research is designed