Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify contracting business with the government. This time with DoD.
DFARS Part 210 Market Research
DFARS 210.001 Policy
Agencies are to evaluate needs and tradeoffs are assessed to acquire such (FAR 10.001(a)(1)). They are to conduct market research fitting to each purchase (FAR 10.001(a)(2)). This action is to be completed and documented before developing requirements documents (FAR 10.001(a)(2)(i)) or soliciting anything above the SAT (FAR 10.001(a)(2)(ii)). Market research is to be used to generate competitive offers as received proposals are to be evaluated on the analysis of the CO/KO creating competition between them to achieve the best market value considering tradeoffs concerning the purchase for DoD. The market study is also to be used to determine set-aside status for small business or various small business concerns within the arena of federal contracting. The decision to set aside or not needs to be documented by the CO/KO.
The primary outcome of market research is to determine what price reasonableness is for each purchase. Purchases constitute commercial items under the DoD umbrella as well as major weapons systems.
Market research is also utilized to consider the option of bundling. The intent must be published in SAM 30 days prior to award and any perceived benefits of bundling must be included in the announcement.
DFARS 210.002 Procedures
PGI 210.070 displays the plan of action for services, but it is a fine indicator of what is included in the process. The contract file must include methodology, time frame, analysis and conclusion. In addition each CO/KO is to store communication from prospective offerors in case of future sole source buys. The DoD Market Research Report Guide can be consulted for assistance (https://www.acq.osd.mil/asda/dpc/cp/policy/docs/sa/2017_Market_Research_Guide_(Final).pdf).
Market research is the straw that stirs the drink from the inside. However, it aids both sides because any prospective contractor must conduct a market analysis before submitting a proposal. Understanding how the CO/KO conducts theirs can serve as a guide for you to conduct yours.
When at the VA’s FSS program, the Commodities and Pharmaceuticals teams conducted market research with a quick spreadsheet analysis while conducting formal practices on the line-items that are considered to be outliers. The Services team utilized more traditional methodologies to determine fair and reasonable price-points for each line-item. Market research allows the CO/KO to understand various nuances of each buy. Because one must create an understanding of the good or service being purchased to conduct negotiations respectfully. The process often involves learning new material and grasping such quickly. Market research also is not a prefabricated procedure. There are several avenues to determine price reasonableness and best practices for each individual buy. This standard operating procedure is another of my favorite concepts of contracting. I’ve done it and I’ve done it well.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation. 
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