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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Products

Services

Product data. Product performance and interface characteristics; applicable regulatory, commercial, and de facto standards; open system definitions; product-differentiating factors; cost-driving factors; test results; samples; product literature such as product data sheets, independent test reports, and product instructions.

Service data. Tasks included in the service; service levels; acceptable quality levels; use of govern- ment, industry, or company standards; related or ancillary services; costs; labor.

Supplier capability. Number of suppliers in the market, production capacity, producer's capability to meet surge and mobilization demands.

Service delivery. Geographic coverage (local, re-

gional, national, or international); actual service provider (company employees, subcontractors, or independent consultants); availability of service (for example, round-the-clock or business days only).

Market acceptance data. Annual sales, market share, product maturity, returns on warranty, other data related to whether the product meets govern- ment needs.

Market acceptance data. Annual sales and growth

trends, market share, number of customers using the service.

Support data. Product support records, experience, and support system; warranties; repair histories; policies and procedures on repair and replace- ment; support of or upgrades to discontinued mod- els; length of time that particular products will be produced or supported; approach to providing up- grades.

Customer support. Inclusion of on-site customer service representatives, dedicated customer repre- sentatives, help lines, availability to meet sudden changes in customer needs.

Test data. Test results (from the supplier's or an in-

dependent laboratory), regulatory or third-party testing or certification (for example, Federal Avia- tion Administration or Underwriters Laboratories, Inc.). (Test data can be used to validate suppliers' claims regarding product performance. In some in- stances, test data can eliminate or reduce the

need for further testing.)

Training and certification. Company, industry, state,

and national training or certification requirements for the personnel performing the service; use of the latest business processes or technologies to improve the service and provide value to the cus- tomer.

Business practices. Standard commercial contract terms, conditions, and pricing arrangements for commercial acquisitions using procedures in FAR Part 12; factors affecting how products are sold or distributed in the market (such as commercial sup- ply chains).

Business practices. Standard commercial contract

terms, conditions, and pricing arrangements for commercial acquisitions using procedures in FAR Part 12; structure of service contracts such as use of performance-based statements of work, per- formance metrics, performance incentives, and quality assurance plans.

References. Entities using the product. (The refer- ences are used to verify the information submitted by the supplier and to get other users' views on how the product performs.)

References. Entities using the service. (Service quality is crucial, so checking references of current service users is vital to understanding how the service provider is performing.)