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 237.102 -78 Market Research Report Guide For Improving The Tradecraft In Services Acquisition
PGI 210.070
Market research is essential both for the government as well as the offeror. Each side at the negotiation table may and and should conduct thorough market research in order to prepare not only fair negotiation points, but also to submit a thorough proposal. The process involves more than just a price-point. Your assigned CO must become somewhat of an expert on every purchase they make on behalf of the United States of America. The offeror already is.
The process for the government begins by identifying a need. The next step is creating a team if necessary which may include technical expertise from the government or a non-competing company within the same industry (otherwise the CO conducts MR individually). After that, applicable sections of the FAR as well as agency-specific regulations. Following that, agency objectives must be drawn. Next, a strategy must be devised (techniques of collecting information(. The next step forward is to begin exploring the perimeters of the specific market (document all findings and share if necessary). Then a search for government or agency purchases is conducted. After that, sources of supply are determined to gauge the level of competition vying for award. Following that, the data must be analyzed (the data collected will be more specific as knowledge is gained). After that, the CO will understand if their established objectives have been achieved. Next, the CO must understand commercial practices. Then the CO must look into the availability of business set-asides for the purchase in an attempt to aid in the accomplishment of agency goals. The final task is to create trade-offs using a best value continuum. Documenting the findings from the market research process will aid in the construction of the acquisition plan as well as the contract solicitation. These documented findings are saved and used as tools of learning for the government, industry and academia.
Offerors must conduct themselves in a similar manner.
Gym
Techniques of market research include, but are not limited to; reading trade journals, engage subject-matter experts in government and industry, speak to companies who perform the subject of the solicitation who are not competing for the contract award, send surveys to viable companies, conduct site visits, attend in-person events such as tradeshows, conferences and symposiums, query government databases, utilize internet web searches, locate previous government contracts, seek professional feedback, peruse literature from service-providers, seek sources from other agencies and hold pre-solicitation conferences or an Industry Day.
Again, offerors may and should practice the same techniques.
The process of market research gathers intellect concerning the specific purchase by the government as well as aids in the vendor’s knowledge of how might the government establish negotiation points based upon standard commercial practices, various price points as well as rules and regulations within the spheres of government and society. Intellect gathered includes, but is not limited to; level of competition, possibility of set-aside(s), metrics of workflow and delivery, potential for a subcontracting plan, gauging of conflict of interest,avenues for mitigation, marketplace trends, lessons learned from the purchase, establishment of best practices, a list of known sources of supply and why they are included and excluded, the involvement of government programs such as Ability One and FPI, performance requirements, the tilt of leverage, pricing structure, purchasing behaviors, market affects, fair and reasonable price, market standards, environmental and safety risks as well as industry vocabulary.
The offeror or contractor is immediately considered to be a subject-matter expert. The government may have some catching up to do.
The government is unable to develop an acquisition strategy until they possess a working knowledge of the specified industry. Only then can they plan for set-aside)s), competition requirements, contract vehicle(s), specific terms and conditions, government furnishments, property details as well as concern of intellectual property property.
Simply this process alone allows a CO within the federal government to steer their professional career towards their best personal fit. They possess the wherewithal to find information with an any industry. How many other professions bring that to the table? Nevertheless, folks get mad and social circles and dinner tables when somebody else is on the same parallel as the considered subject-matter expert. Market research is not only a powerful tool for both sides of the negotiation table. It is a powerful tool, period. This is because the commercial sector routinely develops a niche intellect necessary for their benefit. Whereas the government develops practices and principles that can be used agency wide, government wide as well as commercial wide.
This is one of the fun parts of preparing to purchase something for the federal government. Not only do you possess the opportunity to research industry. You possess the opportunity to learn a lot about individual companies.
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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