The Acquisition Institute Inc. Presents

1
The Acquisition Institute Inc.Presents

• Market Research
• For
• Technical Personnel

4 Hours 4 CLP credits available at
www.AcquisitionInstitute.com
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Market Research Topics

• Market Research Policy (FAR 7, 10, 11 Overview)
• Small Business Policy (FAR 19 Overview)
• Commercial Item/Services Discussion (Upside
  Downside)
• Market Research Goals
• Process Steps Process Guide Overview
• Techniques/Tool Kit Overview
• Industry Day Risk Assessment Workshop Discussion
• Participants (Roles and Responsibilities)
• Tools
• Documentation (Market Research Report
  Walkthrough)
• Search Engines Overview (NAICS Code Discussion)
• Website Search Demonstrations (No Yahoo or
  Google)

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Training Objectives

• Objectives
• Review Policies Requiring Market Research And The
  Government Mandate To Conduct Market Research
• Explain The 6-Step Market Research Process
• Identify Tools and Resources Available for
  Conducting MR Projects

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Market Research Policy

• Federal Acquisition Streamlining Act (FASA) of
  1994 required Government to
• Buy commercial items, commercial services, and
  non-developmental items to meet agency needs,
• Require prime contractors and subcontractors at
  all levels to incorporate commercial and
  non-developmental items as components of systems
  they develop for federal agencies,
• State specifications in terms that enable and
  encourage companies to supply commercial and
  non-developmental items, and
• Revise procurement policies, practices, and
  proceduresnot required by lawto remove
  impediments to the acquisition of commercial
  items.

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Market Research Policy

• FAR - Part 10 Market Research it be conducted
• Before developing a new requirements document
• Before soliciting offers for acquisitions with
  an estimated value in excess of 150,000
• Before soliciting offers for acquisitions with
  an estimated value less than the SAP threshold
  when adequate information is not available and
  the circumstances justify its cost and
• Before soliciting offers for acquisitions that
  could lead to a bundled contract (15
  U.S.C.644(e)(2)(A))
• Before awarding a task or delivery order under an
  IDIQ contract.

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Market Research Policy

• FAR - Part 7 Acquisition Planning
• FAR 7.102 Requires market research for all
  acquisitions promotes and provides for
  acquisition of commercial items/services and full
  and open competition
• FAR 7.105 Requires Acquisition Plans to address
  extent, results, and impact of market research
• FAR 7.107 Requires market research to determine
  necessity and justification for bundling
  (measurably substantial benefits)

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Market Research Policy

• FAR - Part 11 Describing Agency Needs
• 11.002 Policy.
• (a) In fulfilling requirements of 10 U.S.C.
  305(a)(1), 10 U.S.C. 2377, 41 U.S.C.
  253a(a), and 41 U.S.C. 264b, agencies shall
• (1) Specify needs using market research in a
  manner designed to
• (i) Promote full and open competition or maximum
  practicable competition when using simplified
  acquisition procedures, with due regard to the
  nature of the supplies or services to be
  acquired and

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Small Business Policy

• FAR Subpart 19.5 Set-Asides for Small Business
• RULE OF TWO
• The contracting officer shall set aside any
  acquisition over 150,000 for small business
  participation when there is a reasonable
  expectation that (1) offers will be obtained from
  at least two responsible small business concerns
  offering the products of different small business
  concerns and (2) award will be made at fair
  market prices.

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Small Business Policy

• FAR Subpart 19.201  General Policy Small
  Business Opportunities
• It is the policy of the Government to provide
  maximum practicable opportunities in its
  acquisitions to small business, veteran-owned
  small business, service-disabled veteran-owned
  small business, HUBZone small business, small
  disadvantaged business, and women-owned small
  business concerns.

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Market Research Policy

• FAR - Part 12 Acquisition of Commercial Items
• Scope of Part.
• This part prescribes policies and procedures
  unique to the acquisition of commercial items.
  It implements the Federal Governments preference
  for the acquisition of commercial items contained
  in Title VIII of the Federal Acquisition
  Streamlining Act of 1994 (Public Law 103-355) by
  establishing acquisition policies more closely
  resembling those of the commercial marketplace
  and encouraging the acquisition of commercial
  items and components.
• MUST BE FIRM FIXED PRICED ACQUISITIONS

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Terms Definitions

• Commercial Item Terms and Definitions
• Commercial Off the Shelf (COTS)
• Items of a type customarily available in the
  commercial marketplace
• Commercial items that have had minor
  modifications to meet Federal Government
  requirements.
• Services of a type offered and sold competitively
  in substantial quantities in the commercial
  marketplace based on established catalog or
  market prices for specific tasks performed under
  standard commercial terms and conditions.
• A nondevelopmental item, if the procuring agency
  determines the item was developed exclusively at
  private expense and sold in substantial
  quantities, on a competitive basis, to multiple
  State and local government

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Commercial Items/Services

• Upside to Commercial Acquisitions
• Utilization of streamlined acquisition (per FAR
  Part 13)
• Bulk of the non-recurring engineering charges
  have already been paid by someone else, and
  design verification testing is complete.
• Systems are deployed and operational testing
  complete.
• Production lines are already established and
  mature.
• Quality control measures have typically undergone
  several iterations of process improvement events.
• Most commercial acquisitions have existing
  logistics support infrastructures.
• Technological innovation is inherent in product
  design due to market share demands.

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Commercial Items/Services

• Downside to Commercial Acquisitions
• Acquisition Teams are not entitled to certified
  cost and pricing data leaving it up to them to
  determine fair and reasonable pricing.
• Could potentially lose configuration control.
• Could lead to dependency on sole source prime
  vendor if fleet consistency is a requirement.

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Market Research Policy

• FAR - Part 8 Required Sources of
  Supplies/Services
• 8.000 Scope of Part.This part deals with the
  acquisition of supplies and services from or
  through Government supply sources.
• 8.001 General Regardless of the source of
  supplies or services to be acquired, information
  technology acquisitions shall comply with capital
  planning and investment control requirements in
  40 U.S.C. 11312 and OMB Circular A-130.
• 8.002 Priorities for Use of Government Supply
  Sources.(a) Except as required by 8.003, or as
  otherwise provided by law, agencies shall satisfy
  requirements for supplies and services from or
  through the sources and publications listed below
  in descending order of priority ..

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Market Research Process

• Market Research - A continuous process for
  gathering data on product characteristics,
  suppliers capabilities and the business
  practices that surround them (customary terms and
  conditions, including warranty, buyer financing,
  and discounts under which commercial sales are
  made, etc.) plus the analysis of that data to
  make acquisition decisions.
• Includes two components
• Market Investigation
• Market Surveillance/Intelligence

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Market Research Process

• Market Investigation is a comprehensive survey of
  the market place to gather information in
  response to a specific contract requirement.
• Market Surveillance/Intelligence is an ongoing
  process and includes all the activities that
  acquisition personnel perform continuously to
  keep themselves abreast of technology
  improvements, product developments, and
  commercial business practices relative to their
  areas of expertise. Data gathered during Market
  Surveillance/Intelligence activities are very
  beneficial for tailoring operational requirements
  to take advantage of commercial item products and
  services which already exist in the market place.

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Market Research Process
CONTINUOUS PROCESS FOR GATHERING DATA
Suppliers capabilities
Product characteristics
MARKET RESEARCH
Surrounding business practices
Plus the analysis of that data to make
acquisition decisions
Market Research is the sum of two processes

Surveillance
Investigation
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Gathering Market Research Data
Source Capabilities
Product/Service Characteristics
Business Practices Terms/Conditions
Supportability/ Sustainment

• Availability
• Technology
• Specs/Standards
• Integration/Open
• Systems
• Impact
• Quality Assurance
• Market Prices
• Services

• Competition
• Size
• Production
• Distribution
• Support
• Management
• Consistency
• Team
• Maturity
• Stability
• Availability

• Warranties
• Financing and
• Discounts
• Marking and
• Packaging
• Inspection and
• Acceptance
• Price data
• Insured/Bonded/
• Licensed
• Govt Leverage
• Payment

• Obsolescence
• Cycle time
• Equipment
• Technical Data
• Parts availability
• Impact of
• Replacement
• Items

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Market Research Goals

• Expand Use Of Commercial Item Solutions And
  Commercial Practices
• Expand Use Of Non-developmental Item Solutions
• Identify Innovation and Emerging Technologies
• Address Current Obsolescence Issues
• Assist In The Development Of Your Acquisition
  Strategy
• Tailor Your Contract Terms And Conditions
• Identify Small Business Opportunities
• Promote Best Value Acquisitions
• Provide A Good Understanding Of The Market Sector

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Market Research Process Steps

• Define Your Requirement
• Review Historical Data (Summarize Current Market
  Surveillance Data)
• Develop Your MR Strategy
• Assign Roles and Responsibilities
• Identify Available MR Tools to be Used
• Conduct MR Activities Consistent With MR Strategy
• Survey the Marketplace (Gather the Data)
• Identify Sources
• Evaluate products, services and capabilities
• Document Your MR Results and Findings
• Archive the MR Report
• Share Your MR Data
• Identify Lessons Learned
• Use the Report to support your Acquisition
  Strategy

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Market Research Techniques

• Update Past Market Research
• Review Similar Market Research Reports on File
• Issue Surveys and Questionnaires (Sources Sought
  RFI)
• Conduct Site Visits
• Perform Internet Searches (using Google or Bing)
• Host Industry Days
• Contact Small Business/Source Development Office
• Review Trade Journals
• Contact Professional Societies
• Attend Trade Shows
• Cold Calling (Yellow Pages)
• Contact Professional Contacts

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Industry Days

• Industry Days
• Early Issues and Strategy Session with Industry
• Top Down Review of Proposed Acquisition Approach
• Excellent Opportunity to Review Technical
  Requirements (i.e. Draft PWS, SOW, Tech Maturity,
  Production)
• Review Shared Risks with Contracting Strategy
• Involve your customers
• Encourage Feedback (i.e. Draft PR Review)
• Result Identify Major Issues, Risks, Action
  Items
• One-On-One Sessions (Focus on Acq. Strat)

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Example Market Research Program

• Buying a new car
• Look at brochures (Commercial Data
  Specifications)
• Visit Dealerships (Site Visits)
• Attend car shows (Trade Shows)
• Ask friends, relatives, coworkers (Contacts)
• Read Consumer Reports for best buys and most
  reliable cars (Trade Journals)
• Conduct an Internet Search (Market Survey)
• Yellow pages Look up dealers in your area
• Ask dealers about financing plans, discounts,
  warranties, options, etc. (Terms and Conditions)

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Example Market Research Program

• Buying a new car
• You performed market research by...
• gathering and analyzing information about the
  capabilities of the new car market to satisfy
  your car needs.
• BUYING GOODS AND SERVICES FOR THE GOVERNMENT
  IS NOT MUCH DIFFERENT.

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Who Does Market Research
Technical SME Team
Logistics Specialist
Cost/Price Analyst 1102
Finance
The Acquisition Team
Legal Counsel
Program Manager
CUSTOMER
Small Business
Contracting Officer 1102
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Who Does Market Research

• Rule of Thumb
• The Technical Staff (i.e. engineer, scientist,
  and equipment specialist) is responsible for
  conducting the market research.
• The program manager is responsible for ensuring
  the market research is conducted.
• The contracting officer should not proceed with
  any acquisition unless adequate market research
  has been accomplished.
• The Competition Advocate is available to assist
  everyone.

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Market Research Reports

• Local Policy requires all reports be dated,
  clearly identify the author and have a signature
  block for the contracting officer and program
  manager.
• FAR 10 states that agencies should document
  their market research in a manner appropriate to
  the size and complexity of the acquisition.
• A copy of the market research report should be
  placed in the contract file as a matter of
  record. The technical team should maintain a
  copy for their files to share with other teams
  and to provide a starting place for future
  acquisitions.
• Market Research Report Templates?

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Key Elements Of Success

• Start early
• Review historical data
• Involve industry your users
• Communicate as a team
• Develop MR strategy
• Think of market research as an iterative process
• Review your draft report with major functionals
  before processing the final PR package
• Share the results

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Market Research References

• FAR Part 2, Terms and Definitions
• FAR Part 7, Acquisition Planning
• FAR Part 10, Market Research
• FAR Part 11, Describing Agency Needs
• FAR Part 12, Acquisition of Commercial Items
• FAR Part 13, Simplified Acquisition Procedures
• Hill Website http//farsite.hill.af.mil/
• Google or Bing
• Thomas.net

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Search Engines

• MARKET RESEARCH WEBSITES

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Search Engines
Marks Top Five   Contractor Central Registration
http//www.ccr.gov Government
search engine which provides access to Small
Business Administration Search Engine. GSA
Advantage
https//www.gsaadvantage.gov Government
search engine with millions of products and
services loaded into their database. Products
and services are arranged in common schedules and
a GSA contracting officer is assigned to each
schedule. Businesses are easily identified by
large, small or 8a classifications.   Thomas
Register
http//www.thomasnet.com/ Comprehensive online
resource for finding companies and products
manufactured in North America.   Test Mart

http//www.testmart.com/ Excellent search engine
for commercial test equipment and accessories.
Provides detailed specifications and performance
requirements on most products.   GSA Global
Supply (FAR 8 Search)
https//www.gsaglobalsupply.gsa.gov Enables
search by NSN. GSA Global Supply is your
one-stop source for all your military and agency
support needs, from new Tools and Fire Fighting
equipment to Office Supplies. EBUY
GSA http//ebuy.gsa.gov/ Enables you to
perform Requests for Information pulling data
from GSA Advantages database.
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Search Engines
Parts And Components Locators   Electronic
Engineers Master
http//www2.eem.com/ Excellent resource for
electronic component information arranged by
product type.   Global Spec
http//www.globalspec.co
m/ Search engine for commercial products and
services. Access to vendor catalogs and product
specification sheets. Information is sorted by
product categories.   Internet Part's Locator
http//www.ipls.com/ Ena
bles search by NSN. Worldwide aviation spare
parts availability and online repair
capabilities. IPLS.com enables you to search all
our  databases, request a quote from one of the
listing companies, post messages to the aviation
specific newsgroups, and be part of on-line
discussion groups.   ISO Parts Enables search by
NSN http//www.iso-parts.com/Default.as
px Aviation Spare Parts. DoD Emall

http//www.dlis.dla.mil/emall.asp Enables search
by NSN. DOD EMALL is an Internet based
Electronic Mall, which allows military customers
and other authorized government customers to
search for and order items from government and
commercial sources. DOD EMALL is a Department of
Defense program operated by DLIS. All users are
required to register and be authenticated and
authorized by a DLIS Access Administrator.
WBParts
http//connectors.wbparts.com/ WBPart
s sells aircraft connectors and military
connectors to including connector receptacles,
backshells, plugs, sockets, adapters, covers and
clamps.
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Search Engines
Miscellaneous Search Engines NAICS Codes and
Titles
http//www.census.gov/epcd/www/naicscod.htm The
North American Industry Classification System
(NAICS) is replacing the U.S. Standard Industrial
Classification (SIC) system. NAICS will reshape
the way we view our changing economy. NAICS
identifies hundreds of new, emerging, and
advanced technology industries. And NAICS
reorganizes industries into more meaningful
sectors--especially in the service-producing
segments of the economy. SuperPages

http//www.bigyellow.com/
http//www.yellowpages.com The Super Yellow
pages provides a search engine for identifying
business locations and point of contact
information for vendors in North America.
Recommend this search engine for market
surveillance type activities.    Better Business
Bureau
http//www.bbb.org/ The name says it all. Good
resource for past performance information on
vendors.  Open Directory Project (HotSheet)
http//www.hotsheet.com/dmoz Huge
database search engine with a wide range market
sectors with one specifically dedicated to the
Aerospace and Defense market sector.   Business.Co
m
http//www.business.com/ Commercial
database search engine covering a wide range
market sectors. Supply View. COM

http//www.supplyview.com/ SupplyView.com
contains an Interactive database of more than 30
billion parts with over 10,000 registered
Franchise and Independent distributor members.
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Search Engines

• Search Engines Tips Tricks
• If you know the previous vendor on your
  follow-on contract, you can search their company
  profiles for their NAICS Codes and then use their
  NAICS code to look for competitors.
• You can search GSA Advantage for labor rate
  categories for various locations throughout the
  USA and GSA Ebuy for performing RFIs
• Search Google Maps (Satellite Mode) with
  business address to see if it is located in an
  industrial park or a residential area.
• You can search Yahoo or Google by part number
  to find after market sources.
• Search Yahoo Finance or Dun Bradstreet for
  current market business information about a
  specific company.

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• The End
• Take the Exam
• And retrieve your
• Certificate