TextFile MarketResearch AGuideforContractingOfficers

U.S.SmallBusinessAdministration OfficeofGovernmentContracting&BusinessDevelopment July2012

Slide1MarketResearch AGuideforContractingOfficers U.S.SmallBusinessAdministration OfficeofGovernmentContracting&BusinessDevelopment July2012

WelcometoSBAsguideaboutmarketresearch forcontractingofficers. Althoughthistrainingprogramisdesignedforcontractingofficers,webelievethatall federalagencyandbuyingofficepersonnelassociatedwiththeprocurementprocesswill findituseful.

Narrative

Thistrainingmoduleisaboutmarketresearch.Specifically,understandingandusing marketresearchtofindqualifiedsmallbusinessvendors. Marketresearchisacommonbusinesspracticeusedbygovernmentbuyersand commercialfirms.WiththepassageoftheFederalAcquisitionStreamliningAct(FASA) in1994andtheFederalAcquisitionReformAct(FARA)in1996,Congressdramatically shiftedprocurementpolicyforthefederalgovernment.Centraltothereformsarethe mandatestomaximizetheacquisitionofcommercialitemsandservices,andtoacquire thoseitemsinamannersimilartothatusedbythecommercialbusinesssector.Twoof

thebiggestchangesbroughtbyFASAandFARAarethesignificantdiscretionallowedto thecontractingofficerinacquiringcommercialitemsandtheincreasedattentionto marketresearchasanintegralpartoftheprocurementprocess. Implicitintheseimportantchangesistheuseofmarketresearchtofindsuitablesmall businessvendors.

3. ResourcesforMarketResearch Databases&OtherResources

4. LocatingQualifiedSmallBusinesses Narrative Multipletopicsarediscussedinthisguideandtheyareindexed,suchthatanyspecifictopic,at anytimecanbeeasilyaccessed. Slide5MarketResearch ContentDivider Slide6RegulatoryPerspective FederalAcquisitionStreamliningActTitle10U.S.Code,Sec.2377 FAR10.00010.003 MarketResearch FAR2.101MarketResearchDefinition 2 DynamicSmallBusinessSearch(DSBS) SourcesSoughtNotices IndustryDaysandMatchmakerEvents

FAR7.102AcquisitionPlanningandMarketResearch FAR19.202SmallBusinessPolicy Narrative TheFederalAcquisitionStreamliningActof1994setanewtoneandemphasizedtheuseof marketresearchbyfederalagencies. ThegovernmentsrulesandpoliciesregardingmarketresearcharedefinedprimarilyinFARPart 10,FARPart2.101andFARPart7.102.Inaddition,thefederalgovernmentspolicyonsmall businessutilizationandtherequirementsforcontractingofficerstolocateandencouragethe maximumparticipationofsmallbusinessesisoutlinedinFARPart19,specificallyFARPart 19.202. Inaddition,multipleagencieshavepublishedFARSupplementstodefinespecificpolicesonthe useofmarketresearch.Also,manyagenciesandbuyingofficeshavedevelopedBestPractices guideswhichincludeassistanceregardingeffectivemarketresearchtechniques.Itishelpfuland importanttobecomeawareofavailablebestpractices. Youmayalsoconsiderrecordingandmakingavailablebestpracticesforyourownagencyor buyingunit. Slide7MarketResearchDefined Continuousprocessofcollectingandanalyzingdataonproducts,services,business practicesandvendorcapabilities Criticaltoolinhelpingcontractingofficerstofindqualifiedsmallbusinessvendors

Narrative Sowhatismarketresearch? Marketresearchisthecontinuousprocessofcollectingandanalyzingdataonproducts, services,businesspracticesandvendorcapabilitiestosatisfyagencyneeds.Simplyput,market researchislearningaboutthemarkettomakeinformedandsuitabledecisionsandchoices abouttheacquisitionofgoodsandservices. Marketresearchisalsoacriticaltoolinhelpingcontractingofficersfindqualifiedsmallbusiness vendors. Simplystated,marketresearchisthefoundationforbuildinganeffectivesolicitationanda successfulcontract.Itisthemostimportantmethodologyacontractingofficercanusetofind smallbusinessvendors.And,smallbusinessesarecriticallyimportanttopromotingcompetition intheprocurementprocessandgrowingtheoveralleconomy. 3

Slide8ValueofSmallFirms SmallbusinessesaretheengineforeconomicgrowthinAmerica Providejobs,innovationandcompetition Governmentpolicyprovidesmaximumpracticableprimeandsubcontract opportunitiestosmallfirms Governmentssmallbusinesspolicycanbestbefulfilledwithsolidmarketresearch

Narrative Smallbusinessesprovidejobs,innovationandbringcompetitiontothemarketplace. Therearemorethan27millionsmallbusinessesintheUnitedStatesandtheyemployabout halfofallU.S.workers.Importantly,smallfirmsarethelargestcreatorofnetnewjobsin America. TheGovernmentsprocurementpolicywhichencouragesmaximumpracticableprimeand subcontractopportunitiesforsmallbusinessesisacatalystforeconomicgrowth. Thispolicywhichisdefinedinbothstatuteandfederalregulationscanbestbefulfilledwith solidmarketresearch. Slide9SmallBusinessFederalPolicy Collectingandanalyzingmarketinformationaboutsmallbusinesscapabilitiestosatisfy agencyneeds Governmentwidesmallbusinessgoals Marketresearchisoftenusedtodocumentcompliancewithsmallbusiness requirements LearnmoreFAR19.202;FAR2.101

Narrative Acontractingofficerisrequiredtoencouragemaximumparticipationbysmallbusinessesin agencyacquisitions. Beforeasolicitationisissued,acontractingofficershouldmakeeveryreasonableefforttofind qualifiedsmallbusinessvendors.Thisismarketresearchthatiscollectingandanalyzing informationaboutsmallbusinesscapabilitieswithinthemarkettofindqualifiedfirmsand satisfyagencyneeds.Itisalsoreferredtoasmarketintelligence.

Marketresearchisalsoaneffectivetooltohelpagenciesorbuyingunitstomeetoverallsmall businessgoalsorsubcategorygoalssuchasSDB,HUBZoneWOSBand/orservicedisabled veteranownedsmallbusinessgoals. Inaddition,marketresearchisoftenusedtodocumentcompliancewithsmallbusiness requirements.Thisisimportant. Slide10MarketResearchisRequired Marketresearchiscriticaltoelevatingsmallbusinessparticipationshouldbeongoing RequiredFAR10.001(a)(2) Mustbeconducted: beforedevelopingnewcontractrequirementdocuments beforesolicitingoffersforacquisitionsabovethesimplifiedacquisition threshold beforesolicitingoffersforrequirementsbelowthesimplifiedacquisition threshold,whensufficientinformationaboutsmallfirmsisnotavailable beforesolicitingoffersthatcouldleadtocontractbundlingandconsolidation

LearnmoreFAR10.001(a)(2)

Narrative Marketresearchiscriticaltoelevatingtheparticipationofsmallbusinessesinthefederal contractingspace.Itisaformofpracticaleducationthatismorethanjustaprocessitshould bemeaningful,continuousandongoing. FAR10.001(a)(2)requiresthatmarketresearchbeconducted,asappropriatetospecific buyingcircumstances.Specifically,beforedevelopingnewcontractrequirementdocuments; beforesolicitingoffersforacquisitionsabovethesimplifiedacquisitionthreshold;before solicitingoffersforrequirementsbelowthesimplifiedacquisitionthreshold,whensufficient informationaboutsmallfirmsisnotavailable;and,beforesolicitingoffersthatcouldleadto contractbundlingandconsolidation. Itisalsoimportanttonote,FederalSupplyScheduleacquisitions,ashighlightedinFARPart8.4, arenotexemptfrommarketresearchandthedevelopmentofacquisitionplans. Slide11GAOCase&MarketResearch GAOcaseB406256demonstratestheimportanceforagenciestoconductsufficient marketresearch 5

Agencysdecisionwasreversedfortakinginsufficienteffortstoascertainsmall businesscapability

Narrative ItisimportanttocitearecentGAOcaseB406256whichdemonstratedtheimportancefor agenciestoconductsufficientmarketresearch,specificallysmallbusinessmarketresearch. Inthiscase,theagencysdecisionwasreversedfortakinginsufficienteffortstoascertainsmall businesscapability. Slide12PurposeofMarketResearch Performedtosupportthedevelopmentofeffectiveacquisitionplanning Requireswrittenacquisitionplan

Objectiveistoarriveatthemostsuitableacquisitionapproach Shouldprovidesolidinformationon: Existingproducts Capablesmallbusinesssources Competitivemarketforces Commercialpractices Productperformanceandquality Successfulacquisitionpracticesofotherorganizations

LearnmoreFAR7.102;FAR7.105

Narrative Marketresearchshouldbeperformedtosupportthedevelopmentofaneffectiveacquisition plan.FARPart7.102requiresacquisitionplanningandmarketresearchforallacquisitions.FAR Part7.105requiresthatwrittenacquisitionplansdocumenthowtheinformationobtained throughmarketresearchwasusedindevelopingelementsoftheplan. Theultimateobjectiveofmarketresearchistoarriveatthemostsuitableapproachto acquiring,distributingandsupportingsuppliesandservices.Awellexecutedmarketresearch processwillprovidesolidinformationon:existingproducts,capablesmallbusinesssources, competitivemarketforces,commercialpractices,varyinglevelsofproductperformanceand qualityandsuccessfulacquisitionpracticesofotherorganizations.

Slide13UseofMarketResearch Determineavailabilityofsmallbusinesssources Determineifcommercialitemsareavailable Determineifcontractbundlingandconsolidationareavoidableorjustified LearnmoreFAR19.2022

Narrative Akeygoalofmarketresearchistodetermineandfindqualifiedsmallbusinesssources.Itisalso usedtodetermineifcommercialitemsareavailabletomeetacquisitionrequirements. Inaddition,marketresearchisusedtoevaluatecircumstancessurroundingthepossible consolidationofcontractrequirementsandtodetermineifcontractbundlingandconsolidation areavoidable. Slide14MarketResearchDocumentation Explanationoftheacquisitionsbackgroundandpurpose Descriptionoftheagencysneeds,intermsoffunctionandperformance Desiredscheduleofdelivery Listofsmallbusinessandothersourceswhowerecontacted Discussionofcustomarycommercialpractices Identificationofpricerangesdiscovered Descriptionofavailablecommercialornondevelopmentalitems

Narrative Whileagenciesmustdocumenttheresultsofmarketresearch,inamannerappropriatetothe sizeandcomplexityoftheacquisition,thereisnospecificformatthatmustbeused. Thereportshouldsummarizetheactivitiesofthoseconductingthemarketresearch.Ata minimum,thefollowingitemsshouldbeincludedinthedocumentation:explanationofthe acquisitionsbackgroundandpurpose;descriptionoftheagencysminimumneeds,intermsof functionandperformance;desiredscheduleofdelivery;listofsmallbusinessandothersources whowerecontacted,includingthemethodologyusedforcompilingandrefiningthelistof potentialvendors;discussionofcustomarycommercialpractices;identificationofpriceranges discovered;andadescriptionofavailablecommercialornondevelopmentalitems.

Iftheresultingprocurementstrategydoesnotincludesmallfirms,marketresearch documentationshouldexplicitlyexplainwhyasetasideisnotappropriate,aswellasthe specificstepsthatwillbetakentomitigateanegativeimpactonsmallbusinesses. Slide15MarketResearch=MarketIntelligence Graphic Narrative Marketresearchisevolvingintomarketintelligence.Thatis,asolidunderstandingofthe industryandmarketthroughinvestigation&discovery,surveys,requestsforinformation,trade events,associations,sitevisits,industrydays,etc. Solidmarketresearchormarketintelligencecanbeusedto:validaterequirements,ornot; identifymoreefficientrequirementstoeliminategoldplating;ensurethatrequirementsare consistentwithindustrypractices;and,importantly,ensurethatrequirementsareinclusiveof smallbusiness. Slide16ResourcesforMarketResearch ContentDivider Slide17ResourcesforMarketResearch Historicalrecordsrecentresearch,formerbidderlists,currentawardees,etc. Knowledgeablecontractprofessionals(PCRs,BOSs,etc.) Industryconferences,publications,meetingsanddatabases

Narrative Marketresearchisnotanexactscience,butmanyexcellentresourcesareavailabletoassistin suchefforts. Itishelpfultobeginwithhistoricalfilesforsimilaracquisitions.Reviewrecentmarketresearch, formerbidderlists,currentawardeesandotherrelatedinformation. Inaddition,contactknowledgeablesmallbusinesscontractprofessionals,suchasPCRs,Business OpportunitySpecialists,PTACemployeesandsmallbusinessspecialists,withinandoutsideof youragency.Also,industryconferences,publicationsandmeetingscanbeagreatresourcefor marketresearch.Whenconsideringtheuseofthe8(a)BusinessDevelopmentProgramtomeet yourneeds,anSBA,districtoffice,BusinessOpportunitySpecialistcanbeaninvaluableresource inidentifyingcapableprogramparticipantfirms. Slide18Databases&OtherResources 8

CentralContractorRegistration(CCR)(soontobecometheSystemforAward Management[SAM]) http://www.ccr.govorhttp://sam.gov

DynamicSmallBusinessSearch(DSBS) http://www.ccr.govclickonDSBS

FederalBusinessOpportunities http://www.fedbizopps.gov

FederalProcurementDataSystem http://www.fpds.gov

GSAFederalSupplySchedule(findsimilaritemvendors) http://www.gsaelibrary.gsa.gov

InteragencyContractDirectory http://www.contractdirectory.gov

VeteransVendorInformationPages http://www.vetbiz.gov

ThomasNet(industryconnection) http://www.thomasnet.com

Commercialsearchengines http://www.google.com(orsimilar)

Narrative Therearenumerousgovernmentsponsoreddatabasesthatcanassistinmarketresearch efforts. Suchsystemsinclude,theCCR,whichwillsoonbecomepartoftheSystemforAward ManagementorSAM;theDynamicSmallBusinessSearch;FedBizOpps;theFederal ProcurementDataSystem;GSAsFederalSupplyScheduletoidentifyvendorsthatalready performworksimilartoyourneeds,theInteragencyContractDirectory,TheVeteransVendor InformationPages,ThomasNet,anddontforgetcommercialsearchengines.Theyarean incredibleresource.

Andfinally,feelfreetocalloneofSBAsPCRsorsmallbusinessspecialiststohelpinyour research. Slide19LocatingQualifiedSmallBusinesses ContentDivider Slide20LocatingQualifiedSmallBusinesses DynamicSmallBusinessSearch(DSBS) IssueSourcesSoughtNotice IndustryDaysandMatchmakerEvents

Narrative Therearethreeprimarywaystofindqualifiedsmallbusinessvendors. Firstandprimary,usethedynamicsmallbusinesssearchfunctionwithintheCCRorSAM,and second,issueasourcessoughtnoticeonline,inFedbizopps,theFederalRegisterorthrough agencyelectronicbulletinboards.Andfinally,participateinindustryandmatchmakerevents. Slide21DynamicSmallBusinessSearch CCR/SAMandDSBSarepartoftheIntegratedAcquisitionEnvironment(IAE) Searchabledatabaseofsmallbusinessesinallsocioeconomiccategories IdentifiesSBAcertificationsfor8(a)andHUBZonecertifiedfirms Usedalsobyprimecontractorstolocateteamingpartnersorsubcontractors

Narrative TheDynamicSmallBusinessSearchfunctionisincorporatedintotheCCRorthenewSAM system.Itisasearchabledatabasethatisthemostwidelyusedandthemostproficientin identifyingsmallbusinessvendors.Itslimitations,ofcoursearetiedtotheavailabilityand accuracyofdatainputbysmallfirmsandthequalityofsearchesconductedbyusers.Thetool hasmanyfunctionsincludingtheidentificationofSBA8(a)andHUBZonecertifiedfirms,WOSBs, servicedisableveteranownedsmallfirms,and/orothersmallbusinesses.TheDSBSisalsoused byprimecontractorstolocatepartnersorsubcontractors. Itisbyfaroneofthebesttoolsavailable,bothforsmallbusinessesandagencyorprimebuyers. Withthatsaid,itisimportantforcontractingofficerstoremindprospectivesmallbusiness vendorsthattheirSAM/DSBSprofilesarelivingfilesandshouldbeupdatedatleasteverysixto twelvemonths.ASAMorCCRprofileislikearesume.Itshouldbecurrent,accurateandvery

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clear,especiallywithregardstoqualifications.Specifically,NAICScodes,keywordsandskillor experiencedescriptorsshouldbecurrent,inclusiveandveryclear. DynamicSmallBusinessSearchisagreattooltoassessthecapabilitiesandcapacitywithinthe varioussmallbusinesssubcategoriesandcanbeinvaluabletoyoureffortsinidentifyingcapable firms,particularlyifanofficeneedstoincreaseopportunitiesforaparticularsubcategoryto meetitsgoals. Slide22TipsforDSBS Prepareforyoursearch Scaleyoursearchandbeflexible DocumentsearchesforyourMarketResearchReport

Narrative TheDynamicSmallBusinessSearchsystemisapowerfultool,butitseffectivenessisclosely alignedwiththethoughtfulnessofyoursearch. Thatis bediligentaboutpreparingforyoursearch.Makealistofyoursearchcriteria,suchas specificcapabilitykeywordsandNAICScodesyouplantousewellbeforeyouengagethe DSBSsystem. Scaleyoursearchandbeflexible.Thesearchnetyoucastshouldbeexpandedorlimitedbased onfindingsandneed.Itisnotnecessarythatyoucompleteeveryavailablesearchfield.The morefieldsyouuse,themorenarrow,yoursearchwillbe. Importantly,documentallsearchcriteriausedaswellastheresultsofeachsearchtoincludein yourmarketresearchreport. Slide23IssueSourcesSoughtNotices Maybeappropriateforawiderangeofplannedacquisitions PublishedinFedBizOpps(FBO) Canprovideexcellentdocumentationtosupportachosenprocurementstrategy

Narrative IssuingaSourcesSoughtNoticecanbeanexcellentwaytofindavailable,willingandcapable smallbusinessesvendors,especially,8(a)andHUBZonefirms,servicedisableveteranowned smallbusinesses,womenownedsmallbusinesses,andeconomicallydisadvantagedwomen ownedsmallbusinesses.

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Thisapproachmaybeappropriateforawiderangeofacquisitionsthatareplanned.Publishing suchnoticesmaytakealittlemoretimebutcanbeveryeffectiveinattractingpotentialsmall businesscontractors. SourcesSoughtNoticescanbepublishedonline,inFedBizOpps. TheresultsfromaSourcesSoughtNoticecanprovidesoliddocumentationtosupportachosen procurementstrategy.However,tobetrulyeffective,itsimportantthatevaluationsof responsestosourcessoughtnoticesbegenuineandnotgamedtoexcludesmallbusiness results. Slide24IndustryDaysandMatchmakerEvents Participateinindustrydaysandmatchmakerevents Excellentwaytoidentifycapablesmallbusinesssources

Narrative Participationbyagencypersonnel,specificallytechnicalandrequirementsdevelopmentstaff inindustrysponsoredeventsandmatchmakereventscanbeessentialinidentifyingcapable smallbusinesssourcesforbothcurrentandfuturerequirements. Slide25ResourcesandQuestions ContentDivider Slide26ResourcesandTools FederalAcquisitionRegulations https://www.acquisition.gov/far

AcquisitionCentral https://www.acquisition.gov/

FARPart19SmallBusinessPrograms http://www.acquisition.gov/far

CodeofFederalRegulations(13CFR) http://www.gpoaccess.gov/cfr/index.html

FederalBusinessOpportunities http://www.fbo.gov

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SBAGovernmentContracting http://www.sba.gov/aboutsba/sbaprograms/gc/index.html

Narrative Numerousresourcesareavailabletoassistcontractingofficersandothercontractingpersonnel withmarketresearchandgeneralcontractingissuesorquestions. Slide27ResourcesandTools SBASizeStandards http://www.sba.gov/category/navigation structure/contracting/contractingofficials/eligibilitysizestandards 8(a)BusinessDevelopmentProgram http://www.sba.gov/content/8abusinessdevelopment0 WOSBProgram http://www.sba.gov/content/contractingopportunitieswomenownedsmall businesses HUBZoneProgram http://www.sba.gov/content/hubzone0 Local(client)resources: SBAdistrictofficehttp://www.sba.gov/localresources/index.html ProcurementTechnicalAssistanceCenter(PTAC) http://www.aptac us.org/new/Govt_Contracting/find.php SCOREchapter http://www.score.org SmallBusinessDevelopmentCenter http://www.asbdcus.org WomensBusinessCenterhttp://www.awbc.biz/locate.asp

Usetheseresourcestoenhanceyourprocurementstrategy. Slide28ContactUs ThankyoufortakingthetimetolearnaboutMarketResearch Pleasecontactuswithanyquestionsyoumayhave

U.S.SmallBusinessAdministration OfficeofGovernmentContractingandBusinessDevelopment 8008275722 13

Narrative Thankyoufortakingthetimetolearnaboutmarketresearch.Marketresearchisthe responsibilityofallinvolvedintheprocurementandrequirementsdevelopmentprocess.A strongandefficientprocurementprocesswhichmaximizessmallbusinessparticipationis onlypossibleifallinvolvedintheprocessembracetheconceptofsolidacquisitionplanningand marketresearch. Muchinformationhasbeendiscussedandwehopeitishelpful.Pleasecontactuswithany additionalquestionsyoumayhave. Thankyou.

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