Market Research . . . and other acquisition

considerations

March 6, 2014For HHS Small Business, Contracting and Program Staff

BY: Barbara Weaver, PCR-CMR, SBA-OGC, Area II

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PCR-CMR RolePCR – Procurement Center Rep Review procurement actions issued by federal agencies Help make decisions about small business set-asides

[SDB, 8(a) WOSB, HZSB, SDVets]

CMR – Commercial Market Rep Monitor small business programs of large federal prime

contractors Conduct compliance reviews Inform COs of findings

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PCR Operations

PCRs help ensure that a fair portion of agency purchases go to small businesses of all types by: representing SBA at major buying activities reviewing proposed acquisitions, including bundled

procurements recommending requirements to be set-aside for small

businesses advising agencies & small businesses on SBA

programs initiating secretarial appeals

FAR Part 19.402

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What PCRs See Form 653 JOFOC Statement of Work Acquisition Plan Market Research Government Estimate ….anything else needed to

make a determination

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SBA-HHS Plan of Operations

13 CFR 125 and FAR Part 19 Review all unrestricted actions over $150,000 Conduct periodic review/training Review task/delivery orders [+$2 Million]

placed against MACs, MAS, GWACs for bundling

Review subcontracting plans over $650,000

Background Information

HHS PCR Change – August 6, 2013 153 procurement actions reviewed to 9-30-13 22 of 153 actions set-aside for SB – 14% PCR-Impact – 6 actions

Transitional Challenges

Learning Curve Volume, rhythm and timing Tracking system Subcontracting plans . . . And especially market research

FAR Part 7 – Market Research Requirements

FAR 7.102. Requires market research for all acquisitions; promotes and provides for acquisition of commercial items/services and full and open competitionFAR 7.105. Requires Acquisition Plans to address extent, results, and impact of market researchFAR 7.107. Requires market research to determine necessity and justification for bundling (“measurably substantial benefits”)

The continuous process of collecting and analyzing information about capabilities within the market to satisfy agency needs and make acquisition decisions.

Includes Strategic and Tactical Research

WHAT is Market Research?

Who Does Market Research???

Finance

Legal Counsel

Contracting Officer

Program Manager

SBS/PCR

DCAA/DCMA

The Acquisition Team

Cost/Price Analyst

Technical Team

Customer

Strategic – the “Long Term View”

Helps develop general knowledge and understanding of the government marketplace relevant to your business lines

Is iterative, on-going, and not aimed at any specific procurement action.

Builds the knowledge base that becomes the foundation for more focused tactical research.

Strategic Methods

Reviewing trade journals and articlesNewspaper articles – business pagesTrade association conferencesElectronic forums & webinars

A veritable cross-section of information

Tactical Market Research

For the “instant” requirement Begins early in the acquisition process Is used to identify potential prime contractors,

sources of supplies & materials Assists in acquisition decision-making

Tactical Methods

Sources Sought Synopses Requests for InformationSBA’s Dynamic Small Business Search Draft Solicitations for Comment Surveys of the MarketplaceFace-to-face contact with vendors

WHEN to do Market ResearchRequired on every acquisition, as appropriate –

• Before developing NEW requirements documents (Statements of Work, Statements of Objectives, Purchase Descriptions)

• Before soliciting offers/bids exceeding the SAT ($150k)• Before soliciting offers/bids under the SAT if adequate

information is not available and circumstances justify.• Before soliciting for an acquisition that could lead to a

bundled or consolidated contract.

Bundling Reminder

If Bundling is considered, the SBA PCR should be consulted 30 days prior to the acquisition strategy being finalized.

At least 30 days before the release of the solicitation, any incumbent contractor(s) must be notified that the government intends to bundle the requirement.

WHERE to Conduct Market ResearchInternet – search engines, company web sites, trade

groups forums, ebiz newsletters, government sites (FBO, FPDS), on-line bulletin boards.

Print media – Business Times, newspapers, trade journals, catalogs & line cards received from contractors & suppliers, business cards, yellow pages, source lists.

SBA – Dynamic Small Business Search, PCRs, BOS’, etc.

WHERE to Conduct Market ResearchVerbal – phone conversations with industry

and/or Small Business Specialists at Federal agencies; conversations with small business development center representatives, etc.

Networking – trade fairs & expos, networking luncheons, professional organizations, pre-bid/solicitation meetings.

WHERE to Conduct Market ResearchProcurement Technical Assistance Centers (PTAC) and Small Business Development Centers (SBDC) set up by SBA and DOD to help small businesses.

Other – civilian business associations for assorted socioeconomic groups who sponsor outreaches for their member businesses.

Select a healthy mix of targets to include dependent on the acquisition.

How Often

Tactical Market Research is generally considered “current” if accomplished within 12 months

For Strategic Market Research, 12 months may be too long! Industry and information technology drives a fast-paced environment!

HOW to do Market Research

Start with a subject or description. What targeted information are you looking for?

Decide how complex the research needs to be based on URGENCY, TECHNOLOGY, AVAILABILITY, COMPLEXITY.

NOTE: When Agencies conduct MR thru a sources-sought announcement, they must not request more information from potential sources than is necessary to gather the data needed to make acquisition decisions.

WHAT to do with Market Research Once completed, market research results must be analyzed. Source lists compiled from the research results are compared directly to the online information for each vendor that asserts that their capabilities are compatible with the government’s needs. A narrative is required that addresses the market research process, each firm’s capability and capacity to perform – or not, and the reason for the ultimate decision.

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FAR 19.502-2(b)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…. and

(2) award will be made at fair market prices.

Rule of Two Reminder

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Initial Market Considerations What is the history of this acquisition? What did you

do last time? Is there existing market research within your

agency? Is there existing market research outside of your

agency? Have you issued a sources sought? Have you reviewed the Dynamic Small Business

Search? Have you been in touch with the small business

community? The SBA?

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Think Small Business

Keep an open mind Use market research to craft a strategy, not

to validate a pre-existing thought As possible, provide a positive assessment

of small business capacity and capability.

RequirementAcquisitionStrategy &

653SolicitationPreparation

Pre-Solicitation noticeissued in FedBizOpps

IssueSolicitation

Releaseto Industry

Acquisition Sequence

Market Research

SBA Concurrence

Procurement Identifying Number Title of Procurement North American Industry Classification System

(NAICS) Code: http://www.census.gov/naics Total Estimated Value New or follow-on requirement? If a follow-on, what is the status of the incumbent

contractor (large business, small business, 8(a), etc.)?

Market Research Documentation

Market Research Documentation Is a bundled contract anticipated? [If so, comply with FAR 7.107, FAR 10.001(c) and 19.202-1(e)] Small Business Set-Aside? Points of Contact Description of Requirement Description of Market Research actually

accomplished (who, when and how). Describe the results of the Market Research

conducted.

Market Research DocumentationDescribe, to the extent applicable for this procurement action: Whether sources capable of satisfying the agency’s

requirements exist, and if not, what they are lacking, The extent commercial items are available and could

be incorporated, The contract type, warranty terms, financing,

maintenance, packaging and marking, The maximum practicable use of recovered materials, The availability of electronic and information

technology as required by 36 CFR 1194.

If this procurement action contemplates the use of a multiple award schedule contract, be advised that under the Small Business Jobs Act of 2011, agencies may: Set aside part or parts of a multiple award contract for

small business; Set aside orders placed against multiple award contracts

for small businesses; and Reserve one or more contract award(s) for small

businesses under full and open competition multiple award procurements

Market Research Documentation

FAR 19.203(a) Policies: Relationship among small business programs (parity) for procurements valued over $150,000 based upon market research

#1 First consider HUBZone or 8(a) or SDVOSB or WOSB or EDWOSB set-asides

#2 Then, small business set aside

#3 Finally, full and open competition

Parity Among SB Programs

Finding 8(a) and HZ Firms

Central Contractor Registration (CCR)

Dynamic Small Business Search (DSBS)

Input into the 8(a) and HUBZone sections can ONLY be accomplished by SBA Central Office upon formal SBA certification.

DO NOT RELY ON SAM FOR THIS INFORMATION…check under “DSBS”

SummaryKey to acquisition success . . Start market research early and invite

team members to assist Research all solicitations over $100K Document the research process Send research with Form 653 and other

acquisition documentation Describe government needs in sufficient

detail when doing market research

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Finally . . .

Understanding small business programs and market research is essential to successful acquisition planning and the outcome of the solicitation/contract award processes. It is our responsibility to conduct and document market research as stewards of taxpayer dollars and advocates for SMALL BUSINESS.

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U. S. Small Business Administration barbara.weaver@sba.gov

Rev. 2-2013