Market Research Primer

1
Market Research Primer

• Juanita Williams
• Chief, Procurement Operations Division, OPPM
• David J. Shea
• Chief, Procurement Policy Division, OPPM
• July 10, 2003

2
Increasing the Odds of Competitive Sourcing
Success

• Understanding what industry can offer is critical
  to a successful competitive sourcing effort
• Doing market research is similar to a quality
  house painting job preparation is the key.
  Absent it, significant problems are likely in
  managing the contractor/MEO
• Awarding to the MEO or contractor is just the
  beginning --NOT THE ENDof competitive sourcing

3
Welcome to the Acquisition Workforce

• Entry level positions in the General Schedule
  Contracting series (GS-1102)
• Senior positions in the General Contracting
  Series (GS-1102)
• All positions in the General Schedule Purchasing
  Series (GS-1105)
• Positions in other General Schedule series in
  which significant acquisition-related functions
  are performed
• Source Federal Acquisition Reform Act of 1995

4
The Grieving Process(or, I just learned Im part
of the acquisition process)

• According to Dr. Elisabeth Kubler-Ross, the
  grieving process encompasses the following
• Denial
• Anger
• Bargaining
• Depression
• Acceptance

5
Policy

• Federal Acquisition Regulation (FAR) Part 10 (48
  CFR Part 10)
• Agencies must
• Ensure legitimate needs are identified and
  trade-offs evaluated to acquire items that meet
  those needs
• Conduct market research appropriate to the
  circumstances
• Before developing new requirements documents for
  an acquisition by that agency

6
Policy (Continued)

• Agencies must use the results of market research
  to
• Determine if sources capable of satisfying the
  agencys requirement exist
• Determine the practices of firms engaged in
  producing, distributing, and supporting
  commercial items (and services), such as terms
  for warranties, buyer financing, maintenance and
  packaging, and marking
• For services, what are industry practices? For
  example, how does industry describe and price its
  services? What are performance benchmarks? What
  performance measures are used? What performance
  reports are used?
• CAUTION Be aware of contract bundling
  situations/small business issues!

7
How Does this Fit Into the A-76 Process?

• Thorough market research is essential in
  developing a Performance Work Statement
  (PWS)/Statement Of Objectives (SOO) and related
  performance measure and incentives
• New A-76 circular is moving in direction
  recommended by Commercial Activities Panel
  making process more FAR-like

8
Procedures

• The extent of market research will vary,
  depending upon such factors as urgency,
  estimated dollar value, complexity, and past
  experience
• Involve your contracting staff early in the
  process
• Tailor what you do to the requirement you are
  addressing

9
Techniques(FAR 10.002)

• Contacting knowledgeable individuals in
  Government and industry regarding market
  capabilities
• Think in terms of outcomes, not process
  PWS/SOO, not Statements of Work
• Reviewing the results of recent market research
  undertaken to meet similar or identical
  requirements
• Issuing Requests for Information (RFI) or
  Requests for Comment (RFCs) in FedBizOps

10
Techniques(Continued)(FAR 10.002)

• Participating in interactive, on-line
  communication with industry, acquisition
  personnel and customers
• Obtaining source lists of similar services from
  other contracting activities or agencies, trade
  associations, or other sources
• Publishing formal requests for information in
  appropriate technical or scientific journals or
  business publications

11
Techniques(Continued)(FAR 10.002)

• Reviewing catalogs and other generally available
  product literature published by manufacturers,
  distributors, and dealers or available on line
  (for example, GSA E-schedules Library, etc.)
• Conducting interchange meetings or holding
  pre-solicitation conferences to involve potential
  offerors early in the acquisition process
• NOTE Agencies should document the results of
  market research in a manner appropriate to the
  size and complexity of the acquisition

12
Exchanges with Industry Before Receipt of
Proposals(FAR 15.201)

• Exchanges of information among all interested
  parties, from the earliest identification of a
  requirement through receipt of proposals, are
  encouraged
• Techniques
• Industry or small business conferences
• Public Hearings
• Market Research
• One-on-One meetings
• Site visits
• Advisory Multi-Step Process (FAR 15.202)
• NOTE After solicitation release, the
  Contracting Officer must be the focal point of
  any exchange with potential offerors

13
Exchanges with Industry Before Receipt of
Proposals(FAR 15.201) (Continued)

• Cautions
• Maintain level playing field Procurement
  Integrity and Standards of Conduct requirement
  apply
• Dont release sensitive Government information or
  proprietary vendor information
• Beware organizational conflicts of interest and
  unauthorized commitments!
• When in doubt consult w/Contracting Officer

14
Reality/Challenges

• Integrated Product Teams (IPTs)?
• Less than 1,000 full time procurement personnel
  in USDA (approx. 50 1102/50 1105)
• Budgets
• Developing genuine Performance Work Statements
• What performance measures to use?
• Monitoring contractor or MEO performance
• Financial incentives (positive negative)
• Evaluating proposals

15
Resources

• NASA Market Research Guide
• 7 Steps to Performance Based Service Contracting
• GSA E-Schedules Library
• Industry Association Websites
• Other Government Agencies

16
Internet Tools/Sites

• www.usda.gov/procurement
• www.hq.nasa.gov/office/procurement/ market.html
• www.arnet.gov/Library/PreSolicit/
• presolicit.html
• www.acq-ref.navy.mil/tools/
• marketresearch/index.html
• Note check out www.Pro-Net.gov for potential
  small business sources also, USDA Office of
  Small and Disadvantaged Business Utilization,
  [phone]

17
Questions?

• Thanks for your time and attention.
• Questions
• Juanita Williams [phone] or
  juanita.williams_at_usda.gov
• David Shea [phone] or david.shea_at_usda.gov
  also, joe.taylor_at_usda.gov