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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You may also determine that additional steps are needed to properly evaluate the products or services identified through market research. For example, environmental or conformance tests may be needed to determine whether the product meets particular aspects of the requirement, or site visits may be needed to determine whether the supplier can provide a consistent product or service.

Document the Results

Documenting the results of the market investigation is a critical aspect of the process. FAR Part

10 states that agencies "should document the results of market research in a manner appropriate to the size and complexity of the acquisition."The results should also be documented in a man- ner appropriate to how they might be used in the future.That is, the type and amount of infor- mation you keep should be based, in part, on how you expect it will be used in the future.

Documentation serves several purposes. First, it provides a historical record of the market re- search effort and provides evidence that proper market research was conducted for the acquisi- tion. Second, other market research teams investigating similar products may use it to get a feel for what might be available and to get ideas on where to start their investigation.Third, the contracting office working on the solicitation for your acquisition may use it to further deter- mine appropriate contract terms and conditions.

Early market research must also be documented during development of the technical oppor- tunities and user needs prior to Milestone A and further documented in the capabilities devel- opment document prior to Milestone B. DoD Instruction 5000.2,"0peration of the Defense Acquisition System," indicates that market research is a statutory information requirement for both Major Defense Acquisition Programs (MDAPs) and Major Automated Information System Acquisition Programs (MAIS).This instruction requires the evaluation of requirements based on the potential of the commercial market to meet the users' needs.

There is no standard format for documenting your market research results.You should follow your organization's or program's guidance for preparing your report.The following are topics that you should consider addressing in the report:

•  Background for the market research effort

•  Time frame in which the market research was conducted

•  Team members and other stakeholders involved in the market research

•  Description of the requirements

•  Estimated time frame or schedule for the requirement

•  Summary of strategic market research findings, including trends, competition, recent developments, issues, and so on

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