Market Research Requirements
- Market research is the cornerstone for compliance with requirements for
competition when order value exceeds the SAT
- Market research also can justify and document the basis to use the Schedule
program (interagency) as the best procurement vehicle when the order exceeds
$500,000 (FAR 17.502)
- Contracting Officers must identify Schedule contractors capable of performing
as required
- Market research is required to ensure at least three quotes will be received
Market research is the cornerstone to compliance with FAR Subpart 8.4 (for orders
exceeding the SAT) and DFARS 208.405-70. Contracting Officers must identify which
Schedule contractors are capable of performing the required work. Market research is
conducted to verify how many Schedule contractors are interested in the opportunity
and to determine about how many are likely to respond.
It is important to record the number of vendors available per SIN in the acquisition plan
under market research documentation. The Contracting Officer must, at a minimum,
review the Schedule contracts to determine which Schedule contractors are capable of
performing the required work.
Market Research Guidelines. For orders exceeding the SAT
placed against Schedule contracts, the Contracting Officer has two options:
Issue a draft RFQ to learn which objectives are achievable and which vendors
can provide solutions
Use eLibrary to find out which vendors provide the supplies/services required
Issue the notice to as many Schedule contractors as practicable, consistent with
market research appropriate to the circumstances, and to reasonably ensure
that quotes will be received from at least three Schedule contractors who are
capable of doing the work
Notify all Schedule contractors (for the applicable SINs) that can provide
the required work by posting the RFQ on eBuy or by using another suitable
mechanism to “push” the notification to Schedule contractors
When fewer than three responses are received. The Contracting Officer may place
the order, provided the Contracting Officer determines in writing that no additional
contractors could be identified who can fulfill the requirement despite reasonable
efforts to do so.
Note that if the Contracting Officer cannot document that sufficient market research
was conducted to identify potential Schedule contractors capable of performing the
work, and sufficient Schedule contractors were notified, the RFQ must be reissued.