Definition General Info Policies Guides Communities Training Related
Definition
Market research is the process of finding an available product or service that will satisfy the requirement(s), thereby avoiding the expense of developing a new product or service. The second iteration of Market Research attempts to locate newly developed, commercially available systems that meet the program requirements that may not have been available earlier in the acquisition life cycle.
General/Information/Narrative
Market research is a process for gathering product data concerning characteristics, suppliers’ capabilities, and the business practices and trends that surround them. The result of this process aids smart acquisition decisions. From the early stages of the Material Solution Analysis Phase through to the final steps in the Operations and Support Phase; acquisition workforce members in all disciplines are engaged at varying degrees of market research. It is important to remain knowledgeable of market developments that may fulfill a government need.
Market research is mandated for every acquisition, as governed by FAR Part 10, and is intended to help:
- Discover prevailing industry practices
- Identify the availability (if any) of commercially available solutions
- Identify customary industry terms, conditions, and warranties
- Understand distribution and logistics capabilities
- Uncover historical acquisition information
- Ensure maximum competition
- Reveal pricing information
Market research is conducted by all members of the acquisition team including business advisors, program managers, engineers, logisticians, legal staff, test and evaluation personnel, cost specialists, the customer, etc. Though each may focus attention toward specific aspects, the goal is to pull together information so an informed decision can be achieved. While it is necessary for every acquisition, the extent of research required is dependent on five variables: the complexity of the acquisition, the urgency the need, the estimated dollar value, product and information availability, and past experience with the product or service being acquired. When a solution is identified, possible sources must be identified following the rules described in FAR Part 8. The goal of market research is to find a product or service that satisfies the requirements without developing a new product or service.
Policies, Directives, Regulations, Laws
FAR 2.101, Defense Acquisition Guidebook 2.3.10.3
Best Practices, Lessons Learned, Stories, Guides, Handbooks, Templates, Example Tools, Communities of Practice, LEC Tools
ACC- Contracting - Market Research
FAR and DFARS Website
DoD Market Research SD-5
Training Resources
CLE 028, Market Research for Technical Personnel
CLC 004, Market Research
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Definition General Info Policies Guides Communities Training Related