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XPQ-ACE ACQUISITION CENTER OF EXCELLENCE

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XPQ-ACE ACQUISITION CENTER OF EXCELLENCE

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    1. 1

    2. Market Research in Source Selections

    3. 3 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 Break Documentation (Market Research Report Walkthrough) Search Engines Overview (NAICS Code Discussion) Website Search Demonstrations (No Yahoo or Google) Questions Market Research Workshop Agenda The workshop is targeted to all acquisition personnel directly involved with requirements generation and purchase request processing. If you have personnel within your training oversight who are engaged in these type activities please advise them of this workshop opportunity. The workshop is open to all Robins AFB employees and contractors doing business in the local aerospace community. Be advised some web based material demonstrated during the workshop may not be accessible to contractors due to Official Use Only Restrictions. - a detailed overview of market research policy, activities, strategies, and techniques, - the Air Force six step market research process, - available tools for conducting market research surveillance and investigations, - a walk through of a typical market research report, - available web resources for conducting market research activities. - how local vendors can improve their visibility by updating their information in the web search engines we use. The workshop is targeted to all acquisition personnel directly involved with requirements generation and purchase request processing. If you have personnel within your training oversight who are engaged in these type activities please advise them of this workshop opportunity. The workshop is open to all Robins AFB employees and contractors doing business in the local aerospace community. Be advised some web based material demonstrated during the workshop may not be accessible to contractors due to Official Use Only Restrictions. - a detailed overview of market research policy, activities, strategies, and techniques, - the Air Force six step market research process, - available tools for conducting market research surveillance and investigations, - a walk through of a typical market research report, - available web resources for conducting market research activities. - how local vendors can improve their visibility by updating their information in the web search engines we use.

    4. 4 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

    5. ACE Overview Acquisition Center of Excellence (ACE) Mission Statement To Leverage Expert Acquisition & Sustainment Knowledge, Skills, and Abilities Across Multiple Programs to Facilitate Timely Delivery of Credible Capability to the Warfighter ACEs are located at Air Force Product Centers and Logistics Centers. SAF/ACE has lead. 5 Areas of Advice / Assistance Available Technical Document Development Strategy Sessions Acquisition Planning Early Strategy and Issues Session (ESIS) Market Research Risk Management Best Value/Source Selection Tools: PCO Tools PCAG Team Tools Technical Team ToolsAreas of Advice / Assistance Available Technical Document Development Strategy Sessions Acquisition Planning Early Strategy and Issues Session (ESIS) Market Research Risk Management Best Value/Source Selection Tools: PCO Tools PCAG Team Tools Technical Team Tools

    6. 6 Market Research Homepage

    7. 7 Federal Acquisition Streamlining Act of 1994 FASA requires that federal agencies to the extent practicable: Buy commercial items, commercial services, and nondevelopmental items to meet agency needs, Require prime contractors and subcontractors at all levels to incorporate commercial and nondevelopmental items as components of systems they develop for federal agencies, State specifications in terms that enable and encourage companies to supply commercial and nondevelopmental items, and Revise procurement policies, practices, and procedures—not required by law—to remove impediments to the acquisition of commercial items. Market Research Policy

    8. 8 FAR - Part 10 Market Research Federal Acquisition Regulation (FAR) Part 10 states that Market Research must be conducted: Before developing a new requirements document Before soliciting offers for acquisitions with an estimated value in excess of $150,000 (Set by FAR Part 2) Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition 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. Market Research Policy Title 48: Federal Acquisition Regulations System FAR 13: Simplified Acquisition Procedures. Title 48: Federal Acquisition Regulations System FAR 13: Simplified Acquisition Procedures.

    9. 9 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”) Note: Acquisition Planning includes sustainment activities. 7.102 -- Policy. (a) Agencies shall perform acquisition planning and conduct market research (see Part 10) for all acquisitions in order to promote and provide for -- (1) Acquisition of commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable (10 U.S.C. 2377 and 41 U.S.C. 251, et seq.); and (2) Full and open competition (see Part 6) or, when full and open competition is not required in accordance with Part 6, to obtain competition to the maximum extent practicable, with due regard to the nature of the supplies or services to be acquired (10 U.S.C. 2301(a)(5) and 41 U.S.C. 253a(a)(1)). (b) This planning shall integrate the efforts of all personnel responsible for significant aspects of the acquisition. The purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner. Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements.7.102 -- Policy. (a) Agencies shall perform acquisition planning and conduct market research (see Part 10) for all acquisitions in order to promote and provide for -- (1) Acquisition of commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable (10 U.S.C. 2377 and 41 U.S.C. 251, et seq.); and (2) Full and open competition (see Part 6) or, when full and open competition is not required in accordance with Part 6, to obtain competition to the maximum extent practicable, with due regard to the nature of the supplies or services to be acquired (10 U.S.C. 2301(a)(5) and 41 U.S.C. 253a(a)(1)). (b) This planning shall integrate the efforts of all personnel responsible for significant aspects of the acquisition. The purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner. Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements.

    10. 10 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

    11. 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. 11 Small Business Policy (b) 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 (but see paragraph (c) of this subsection); and (2) award will be made at fair market prices. Total small business set-asides shall not be made unless such a reasonable expectation exists (but see 19.502-3 as to partial set-asides). Although past acquisition history of an item or similar items is always important, it is not the only factor to be considered in determining whether a reasonable expectation exists. In making R&D small business set-asides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules. (b) 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 (but see paragraph (c) of this subsection); and (2) award will be made at fair market prices. Total small business set-asides shall not be made unless such a reasonable expectation exists (but see 19.502-3 as to partial set-asides). Although past acquisition history of an item or similar items is always important, it is not the only factor to be considered in determining whether a reasonable expectation exists. In making R&D small business set-asides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules.

    12. 12 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. (a) Except as provided in paragraph (b) of this subsection, an acquisition offered to the SBA under the 8(a) Program shall be awarded on the basis of competition limited to eligible 8(a)firms if -- (1) There is a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers and that award can be made at a fair market price; and (2) The anticipated total value of the contract, including options, will exceed $6.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4 million for all other acquisitions. (a) Except as provided in paragraph (b) of this subsection, an acquisition offered to the SBA under the 8(a) Program shall be awarded on the basis of competition limited to eligible 8(a)firms if -- (1) There is a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers and that award can be made at a fair market price; and (2) The anticipated total value of the contract, including options, will exceed $6.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4 million for all other acquisitions.

    13. 13 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 Government’s 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 Market Research Policy 12.207 -- Contract Type. Agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items. Indefinite-delivery contracts (see Subpart 16.5) may be used where the prices are established based on a firm-fixed-price or fixed-price with economic price adjustment. Use of any other contract type to acquire commercial items is prohibited. These contract types may be used in conjunction with an award fee and performance or delivery incentives when the award fee or incentive is based solely on factors other than cost (see 16.202-1 and 16.203-1). 12.207 -- Contract Type. Agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items. Indefinite-delivery contracts (see Subpart 16.5) may be used where the prices are established based on a firm-fixed-price or fixed-price with economic price adjustment. Use of any other contract type to acquire commercial items is prohibited. These contract types may be used in conjunction with an award fee and performance or delivery incentives when the award fee or incentive is based solely on factors other than cost (see 16.202-1 and 16.203-1).

    14. 14 Commercial Item Terms and Definitions Commercial Off the Shelf (COTS) Items of a type customarily available in the commercial marketplace; (See FAR Part 10) Commercial items that have had minor modifications to meet Federal Government requirements. (See FAR Part 2) 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. (See FAR Part 2) 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 (See FAR Part 2) Terms & Definitions A “commercial item” (as defined in the Federal Acquisition Regulations (FAR) Part 2.101) 8 definitions for commercial items: Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities …. Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace …. Any item that would satisfy a criterion expressed in paragraphs (1) or (2) of this definition, but for minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. Any combination of items meeting the requirements of paragraphs (1), (2), (3), or (5) of this definition that are of a type customarily combined and sold in combination to the general public ….. Installation services, maintenance services, repair services, training services, and other services if …… (6) 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 or specific outcomes to be achieved and under standard commercial terms and conditions. (7) Any item, combination of items, or service referred to in paragraphs (1) through (6) of this definition, notwithstanding the fact that the item, combination of items, or service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; (8) 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 governments. A “commercial item” (as defined in the Federal Acquisition Regulations (FAR) Part 2.101) 8 definitions for commercial items: Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities …. Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace …. Any item that would satisfy a criterion expressed in paragraphs (1) or (2) of this definition, but for minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. Any combination of items meeting the requirements of paragraphs (1), (2), (3), or (5) of this definition that are of a type customarily combined and sold in combination to the general public ….. Installation services, maintenance services, repair services, training services, and other services if …… (6) 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 or specific outcomes to be achieved and under standard commercial terms and conditions. (7) Any item, combination of items, or service referred to in paragraphs (1) through (6) of this definition, notwithstanding the fact that the item, combination of items, or service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; (8) 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 governments.

    15. Commercial Items/Services Upside to Commercial Acquisitions Utilization of streamlined acquisition procedures of FAR Part 13. Bulk of the non-recurring engineering charges have already been paid by someone else. Design verification testing is complete. Systems are deployed and operational testing complete. Production lines are generally 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. 15 Notes on Technological Innovation: B-52 Stratofortress Deployed February 1955. (PreVietnam War era). Korean War ended 1953. Still primary strategic bomber for US Air Force based on number of mission taskings. Notes on Technological Innovation: B-52 Stratofortress Deployed February 1955. (PreVietnam War era). Korean War ended 1953. Still primary strategic bomber for US Air Force based on number of mission taskings.

    16. 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. 16 B-52 Stratofortress Deployed February 1955. (PreVietnam War era).+orean War ended 1953. B-52 Stratofortress Deployed February 1955. (PreVietnam War era).+orean War ended 1953.

    17. 17 Market Research Policy This part deals with the acquisition of supplies and services from or through Government supply sources. Federal Supply Schedule Program, review the following Web site: http://www.gsa.gov/schedules. (a) Supplies. (1) Federal Prison Industries, Inc. (41 U.S.C. 48) (2) JWOD participating nonprofit agencies. (3) Commercial sources. (b) Services. (1) JWOD participating nonprofit agencies. (2) Federal Prison Industries, Inc., or commercial sources. This part deals with the acquisition of supplies and services from or through Government supply sources. Federal Supply Schedule Program, review the following Web site: http://www.gsa.gov/schedules. (a) Supplies. (1) Federal Prison Industries, Inc. (41 U.S.C. 48) (2) JWOD participating nonprofit agencies. (3) Commercial sources. (b) Services. (1) JWOD participating nonprofit agencies. (2) Federal Prison Industries, Inc., or commercial sources.

    18. 18 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: Market Investigation (Tactical Market Research) Market Surveillance/Intelligence (Strategic Market Research)

    19. 19 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. Market Research Process

    20. 20 Market Research Process

    21. Gathering Market Research Data This chart depicts a data evolutionary process from requirements generation through contract award. Here are some of areas to be considered when gathering your market research data. PRODUCT/SERVICE CHARACTERISTICS Market Research can help you refine your requirement or determine if you can satisfy your requirements. You need to identify: - Availability – whether products or services are available in the commercial marketplace to support mission and system requirements. If commercial is not available, what about NDI? Identify the value or limitations of each. - Technology- Is the technology leading edge or a highly stable design? Can advanced technology be applied to, planned, or inserted into in-place systems? - Impact – The impact of the commercial or nondevelopmental items on the environment, safety, security, and energy conservation - Market Prices - The lowest cost alternatives available to meet the customer requirements - For Services: - A new service, stable company, customer satisfaction SOURCE CAPABILITIES DATA Assessing the sources financial, production and support capabilities impacts: - Competition decision - sole source vs competitive - Evaluation criteria Are there socio-economic program requirements? BUSINESS PRACTICES; TERMS & CONDITIONS Determination of customary business practices is critical to structuring solicitations and preparing for negotiations. You should look for: - What are the generally accepted commercial terms and agreements? - Implied and/or express warranties, type and duration of warranties; - Commercial financing/discounts customary?   - Sufficient price data exist? If not, what additional data may be required? Is going commercial, cost effective? - How large/small is government leverage within the market? - What would be the impact on negotiations & competition? Supportability/Sustainment Market Research is also used to identify the life cycle support problems of commercial items, components, processes and technologies. Support and sustainment issues include: availability, obsolescence, cycle time for introduction of new items or average time to support old systems, parts availability, equipment required, who holds technical data rights, and other elements involving the distribution and logistics support capabilities of potential suppliers to meet the needs of the government. Market research will help target viable solutions and identify alternatives and options to these support issues/problems. It is essential to determine the most cost effective sources of those parts and equipment, ensure competitive insertion of advanced technology, and maintain a responsive posture in a diminishing manufacturing sources environment. It will aid in reducing total cost of ownership and assist in the program planning and budgeting process throughout the life of the system. If you’re looking for a service to be performed: - Customer satisfaction and quality of product is a key aspect. Looking at past performance information and checking industry standards can provide you with insight into recurring cost control, technical quality, or timely delivery problems. - Often a service contract needs good incentives to guarantee quality performance. Data Source Market Research Briefing from Brooks AFBThis chart depicts a data evolutionary process from requirements generation through contract award. Here are some of areas to be considered when gathering your market research data. PRODUCT/SERVICE CHARACTERISTICS Market Research can help you refine your requirement or determine if you can satisfy your requirements. You need to identify: - Availability – whether products or services are available in the commercial marketplace to support mission and system requirements. If commercial is not available, what about NDI? Identify the value or limitations of each. - Technology- Is the technology leading edge or a highly stable design? Can advanced technology be applied to, planned, or inserted into in-place systems? - Impact – The impact of the commercial or nondevelopmental items on the environment, safety, security, and energy conservation - Market Prices - The lowest cost alternatives available to meet the customer requirements - For Services: - A new service, stable company, customer satisfaction SOURCE CAPABILITIES DATA Assessing the sources financial, production and support capabilities impacts: - Competition decision - sole source vs competitive - Evaluation criteria Are there socio-economic program requirements? BUSINESS PRACTICES; TERMS & CONDITIONS Determination of customary business practices is critical to structuring solicitations and preparing for negotiations. You should look for: - What are the generally accepted commercial terms and agreements? - Implied and/or express warranties, type and duration of warranties; - Commercial financing/discounts customary?   - Sufficient price data exist? If not, what additional data may be required? Is going commercial, cost effective? - How large/small is government leverage within the market? - What would be the impact on negotiations & competition? Supportability/Sustainment Market Research is also used to identify the life cycle support problems of commercial items, components, processes and technologies. Support and sustainment issues include: availability, obsolescence, cycle time for introduction of new items or average time to support old systems, parts availability, equipment required, who holds technical data rights, and other elements involving the distribution and logistics support capabilities of potential suppliers to meet the needs of the government. Market research will help target viable solutions and identify alternatives and options to these support issues/problems. It is essential to determine the most cost effective sources of those parts and equipment, ensure competitive insertion of advanced technology, and maintain a responsive posture in a diminishing manufacturing sources environment. It will aid in reducing total cost of ownership and assist in the program planning and budgeting process throughout the life of the system. If you’re looking for a service to be performed: - Customer satisfaction and quality of product is a key aspect. Looking at past performance information and checking industry standards can provide you with insight into recurring cost control, technical quality, or timely delivery problems. - Often a service contract needs good incentives to guarantee quality performance. Data Source Market Research Briefing from Brooks AFB

    22. 22 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 Contract Terms And Conditions Identify Small Business Opportunities Promote Best Value Acquisitions Provide A Good Understanding Of The Market Sector Turn Obsolescence Parts issues into proposal opportunities for your acquisitions. Turn Obsolescence Parts issues into proposal opportunities for your acquisitions.

    23. 23 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 Decisions It is imperative that the acquisition team define what it is they are trying to purchase before implementing a market research program. Vagueness of requirements will confuse your market survey processes. The first part of a market investigation is to review and summarize what you already know from your market surveillance activities. The market investigation can then be targeted to answer specific questions and to fill in gaps in information. Develop a market research strategy that will clearly assign roles and responsibilities to the appropriate acquisition team members. Determine what approach will be used to survey the marketplace and identify available tools that can be used to assist in conducting your market research activities. The survey of suppliers may consist of a few telephone calls, or it may be a comprehensive questionnaire sent to a group of potential suppliers, or it may involve the evaluation of product samples. If you decide to use a mail survey, a cover letter or introduction explaining the survey goals and the expected size of the acquisition and a follow-up contact may increase the response rate. Personal contact is best because it provides an opportunity to answer any questions about the survey. The follow-up step is particularly important for encouraging suppliers who have not participated in defense work to respond. The market analyst must identify potential suppliers of acceptable commercial items or services. The potential sources will be asked to participate in a market survey and furnish information on their products or services. In some industries or for some items, everyone may know the suppliers and their products or services. In that case, little effort is required to generate a list of potential suppliers. Other, more diverse industries require considerable effort to identify sources of acceptable products. Adding new potential sources to a list of suppliers increases competition, which can lead to better products at lower costs for the Department of Defense. In some cases, yours may be the first attempt to meet the requirement with a commercial item, and more effort may be required to identify as many potential sources as possible. You may need new techniques to reach sources that have not previously dealt with the government. After receipt of the information, it is important to analyze the data to determine whether the information received is sufficient to determine whether the product or service meet the needs of the requirement. It is not uncommon to get incomplete or erroneous data from suppliers. In some cases, you may need to contact an applications, field service, or design engineer for clarification of issues. You may need to appraise the survey information using market surveillance information, analyzing market trends to fill in missing data. For example, you can estimate an end of production date for a product for which you have no data by analyzing comparable products for which data exists and is available. If a written survey is overly burdensome, many suppliers will not respond. Be careful to request the minimum amount of information you need to make your acquisition decision. The fifth part of a market investigation is to evaluate all the information acquired during the investigation and determine whether a commercial acquisition is feasible. The result may be a determination that it is not feasible; that commercial products or services meet the need as stated; that commercial products or services can meet the need if certain requirements in the original statement are relaxed; or that commercial products or services could be modified to meet the requirement. It is imperative that the acquisition team define what it is they are trying to purchase before implementing a market research program. Vagueness of requirements will confuse your market survey processes. The first part of a market investigation is to review and summarize what you already know from your market surveillance activities. The market investigation can then be targeted to answer specific questions and to fill in gaps in information. Develop a market research strategy that will clearly assign roles and responsibilities to the appropriate acquisition team members. Determine what approach will be used to survey the marketplace and identify available tools that can be used to assist in conducting your market research activities. The survey of suppliers may consist of a few telephone calls, or it may be a comprehensive questionnaire sent to a group of potential suppliers, or it may involve the evaluation of product samples. If you decide to use a mail survey, a cover letter or introduction explaining the survey goals and the expected size of the acquisition and a follow-up contact may increase the response rate. Personal contact is best because it provides an opportunity to answer any questions about the survey. The follow-up step is particularly important for encouraging suppliers who have not participated in defense work to respond. The market analyst must identify potential suppliers of acceptable commercial items or services. The potential sources will be asked to participate in a market survey and furnish information on their products or services. In some industries or for some items, everyone may know the suppliers and their products or services. In that case, little effort is required to generate a list of potential suppliers. Other, more diverse industries require considerable effort to identify sources of acceptable products. Adding new potential sources to a list of suppliers increases competition, which can lead to better products at lower costs for the Department of Defense. In some cases, yours may be the first attempt to meet the requirement with a commercial item, and more effort may be required to identify as many potential sources as possible. You may need new techniques to reach sources that have not previously dealt with the government. After receipt of the information, it is important to analyze the data to determine whether the information received is sufficient to determine whether the product or service meet the needs of the requirement. It is not uncommon to get incomplete or erroneous data from suppliers. In some cases, you may need to contact an applications, field service, or design engineer for clarification of issues. You may need to appraise the survey information using market surveillance information, analyzing market trends to fill in missing data. For example, you can estimate an end of production date for a product for which you have no data by analyzing comparable products for which data exists and is available. If a written survey is overly burdensome, many suppliers will not respond. Be careful to request the minimum amount of information you need to make your acquisition decision. The fifth part of a market investigation is to evaluate all the information acquired during the investigation and determine whether a commercial acquisition is feasible. The result may be a determination that it is not feasible; that commercial products or services meet the need as stated; that commercial products or services can meet the need if certain requirements in the original statement are relaxed; or that commercial products or services could be modified to meet the requirement.

    24. 24 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 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 Note: The above list is not all inclusive of standard market research techniques.

    25. 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, DMS issues, Tech Maturity, Production) Review Shared Risks with Contracting Strategy Involve Users Encourage Feedback (i.e. Draft PR Review) Result: Identify Major Issues, Risks, Action Items One-On-One Sessions (Focus on Acq. Strat) 25 Industry Days

    26. 26 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 (Source Identification) Ask dealers about financing plans, discounts, warranties, options, etc. (Terms and Conditions)

    27. 27 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. Example Market Research Program

    28. 28 Who Does Market Research

    30. 30 Market Research Reports

    31. 31 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 Key Elements Of Success

    32. 32 Market Research References Standardized Document SD-2: Buying Commercial and Non-developmental Handbook Standardized Document SD-5: Market Research 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/

    33. 33 Questions Contact Information WR-ALC/XPQ-ACE Mark Leslein, (478) 926-0281 DSN: 468-0281 Mark.Leslein@robins.af.mil Tailor slide to ACE activity providing training module.Tailor slide to ACE activity providing training module.

    34. 34 MARKET RESEARCH WEBSITES Search Engines

    35. 35 Search Engines Include NAICS Code discussion on CCR. Local GSA Liaison Representative (Debbie Tanton 478.926.2417)Include NAICS Code discussion on CCR. Local GSA Liaison Representative (Debbie Tanton 478.926.2417)

    36. 36 Search Engines

    37. 37

    38. 38

    39. Market Research BACK UP SLIDES 39

    40. J&A Improvement- Key Points AFFARS IG5306 contains all the information necessary to prepare a J&A that is clear and complete enough for SAF/AQ approval Recent issues with J&As: Market research not performed when justifying only one source Lack of clarity/detail on the action being processed Quantities, estimated periods of performance How the action fits in with other program phases/actions (e.g. relationship between production and sustainment portions of pgm) Poorly written justifications that do not present a cohesive argument that the exception applies- Not written in a manner that convinces the reader Lack of clarity on whether unacceptable delay and/or duplication of costs is being asserted as the justification No quantification of delay or why such delay would be unacceptable. No quantification of duplication of costs or basis of estimate.

    41. 41 Market Research Toolkit

    42. 42 Market Research Search Engines

    43. 43 Market Research Archive

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