Government Contracting - DFARS Part 210 - Market Research - Win Federal Contracts

DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting

The National Veteran Small Business Coalition (NVSBC)
is the largest non-profit trade association in the country representing veteran
and service-disabled veteran-owned small business in the federal
marketplace as prime and subcontractors. NVSBC provides networking,
match-making, coaching, and training opportunities for members.
Please visit: www.nvsbc.org

 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.

Judy
Bradt, CEO
The Art Of Human Connection
In The Federal Arena
The right data.
For the right
conversations.
With the right people.
At the right time.
Judy.Bradt@GrowFedBiz.com
• Activate your custom sales plan.
• Meet your Federal Humans sooner.
• Grow your Federal Business.
• JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

Venture X Arlington Courthouse - Metro
• Capital’s first scalable and flexible office space designed for government contractors
• Exceptional IT Security and Office Privacy
• Conference rooms, gourmet coffee, café, engaging open spaces and parking
• Enjoy curated content speakers and networking with peers
• Visit us for a free trial.
Please visit:
https://venturex.com/locations/virginia/arlington-courthouse-metro/

Title Date Registration Link Partner
GSA Schedule: What’s In It
For You? (Virtual)
February 24, 2021
9:30am - 11:30am
https://attendee.gotowebin
ar.com/rt/68560953272137
52332
GSA Schedule:
Procurement Training
(Virtual)
March 16, 2021
10:00am - 12:00pm
https://clients.virginiasbdc.o
rg/workshop.aspx?ekey=14
0410024
For You? (Virtual)
May 25, 2021
10:00am - 12:00pm
ar.com/rt/41951342514843
26668
Marketing and Messaging
For Federal Contractors
(Virtual)
July 01, 2021
4:00pm – 6:00pm
https://catalystcenter.ecent
erdirect.com/events/97144
3
For You? (Virtual)
July 08, 2021
12:30pm - 2:0pm
ar.com/rt/19046459221525
46572

About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration

Advertise In Our Newsletter:
Reach 23,000+ Subscribers! Includes
Government & Government Contractors
Hello@JenniferSchaus.com

Our 2021 Webinar News
* Use Code “DFARS”
for a $15 Discount!

JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Johana Reed
McMahon, Welch and Learned, PLLC
jreed@mwllegal.com
703-483-2818

DFARS Part #210
Market Research
Wednesday, 10 March 2021

DFARS Part #210
What is Market Research?
• The collection and analysis of product or service market information from a variety of sources in order to
determine the best approach for acquiring goods and services to satisfy a party’s needs.
• Should be commensurate with the dollar value of the project.

DFARS Part #210
DFARS Part 210 amends FAR 10.001 for DOD:
PART 210 - MARKET RESEARCH
210.001 Policy.
(a) In addition to the requirements of FAR 10.001(a)—
(i)(A) Agencies shall conduct market research appropriate to the circumstances before issuing a
solicitation with tiered evaluation of offers (section 816 of Pub. L. 109-163); and
(B) Use the results of market research to determine whether the criteria in FAR part 19 are met for
setting aside the acquisition for small business or, for a task or delivery order, whether there are a sufficient
number of qualified small business concerns available to justify limiting competition under the terms of the
contract. If the contracting officer cannot determine whether the criteria are met, the contracting officer shall
include a written explanation in the contract file as to why such a determination could not be made (section 816
of Pub. L. 109-163).

DFARS Part #210
(ii) Contracting officers shall use market research, where appropriate, to inform price reasonableness
determinations (see 212.209 and 234.7002).
(c)(2) In addition to the notification requirements at FAR 10.001(c)(2)(i) and (ii), see 205.205-70 for the
bundling notification publication requirement.
210.002 Procedures.
(e)(i) When contracting for services, see PGI 210.070 , for the “Market Research Report Guide for Improving
the Tradecraft in Services Acquisition”.
(ii) See PGI 210.002 (e)(ii) regarding potential offerors that express an interest in an acquisition.
(iii) Follow the procedures at PGI 210.002 (e)(iii) regarding contract file documentation.
(Link to the Services guide --
https://www.dau.edu/cop/ace/DAU%20Sponsored%20Documents/Market_Research_Report_Guide_201703.pdf)

DFARS Part #210
PGI 210.002 Procedures.
(e)(ii) Contracting officers are encouraged to retain information on potential offerors that express an
interest in an acquisition, in order to solicit feedback in instances when only one offer is received on a
competitive solicitation (see PGI 215.371-2).
(iii) Contracting officers should ensure that the contract file includes—
(A) The methods used to conduct market research;
(B) The timeframe in which market research was conducted;
(C) The analysis of the capabilities of the potential sources that were identified during
market research; and
(D) Any conclusion(s) reached as a result of market research analysis.

DFARS Part #210
Why have Market Research:
• Determines the marketplace capability to perform a particular contract.
• Refinement of a requirement in industry terms.
• Increased competition.
• Increased use of small businesses.
• Understanding of costs.
• Understanding of subcontract opportunities.
• Early identification of potential organization conflict of interest.
• Determines the type of contract and clauses, such as warranty.
• Understanding of potential intellectual property concerns.
• Determination of commercial vs non-commercial availability of the product/service.
• Determination of whether GPR will be required.

DFARS Part #210
Pre-Market Research
• Before doing any Market Research, you must review your requirements. Or in other words, what do you
want your product or service to accomplish?
• Is the product/service available from commercial sources? If so, has a commercial determination been
made? Is it still valid?
• What are the performance requirements?
• Where will the product be used?
• Has the product been purchased before? If so, who is the incumbent? What strategy was used for the prior
purchase? How have prior providers of the service/product performed?
• Do the files contain the history of any prior market research? Is the prior market research still valid?
• What changes have occurred in the marketplace (suppliers, trends, technologies) that impact previously
relevant market research?
• What lessons have been learned from prior procurements?

DFARS Part #210
Market Research
Potential Sources:
• Specialized catalogs
• Product directories
• Trade journals
• Seminars, trade shows, conferences
• Professional organizations
• Engage industry and government experts – think of the Labs
• Interview contracting officers, contract specialists, small business specialists, project officers, and
functional experts within your agency and those in other federal agencies as well as private industry
(other users).
• Marketplace surveys
• Query government databases such as SAM, SBA, GSA, etc.
• Internet research

DFARS Part #210
Other approaches for Market Research:
• Posting of special notices to the Fed Biz Opps site
• The Federal Register
• DoD websites
• Influential academic and trade websites and journals
• Use of interactive web-based technology to expand the reach of the exchange

DFARS Part #210
Post-Market Research
• Document the results of your Market Research
• Summarize the process(es) to include what processes you used in you Market Research.
• Guidance: Summarize your analysis with recommendations for:
• Acquisition strategies to pursue (e.g., commercial acquisition, 8(a) direct, small business set-aside,
sole source, full and open competition, Native American direct, or HUBZone).
• Potential existing contract vehicles that may be employed to satisfy your requirement.
• Recommendations on improvements to the quality and thoroughness of the Government’s technical
performance documents and configuration control data based on research results.
• Relevant risks to be considered as part of any source selection activities.
• Specific contract terms and conditions.
• OCI concerns.
• Intellectual property considerations.
• Government-furnished material/equipment/information/real property requirements.

DFARS Part #210
Reference Tool to Use for documenting your Market Research based on the “DoD Market Research Report
Guide for Improving the Tradecraft in Services Acquisition, March 2017:”
• The Service Acquisition Market Research Report: https://www.dau.edu/tools/t/Services-Acquisition-Market-
Research-Report
• Part 1 – General Information
• Market Research Objectives
• Service Description
• Background
• Potential Supplier Information
• Market Research Techniques Used
• Small Business Opportunities
• Ability One Program, Federal Prison Industries, etc.

DFARS Part #210
• Part 2 – Detailed Market and Industry Analysis
• Performance Requirements
• Market Intelligence/Industry Analysis
• Part 3 – Results of Market Research
• Conclusions and Recommendations

DFARS Part #210
Reference Document to Use for documenting your Market Research based on “ADDM 5000.02 Template:”
• Market Research Report:
https://www.dau.edu/cop/pm/_layouts/15/WopiFrame.aspx?sourcedoc=/cop/pm/DAU%20Sponsored%20Do
cuments/Market%20Research%20Report%20ADDM%20Template%20v1.1.docx&action=default&DefaultItem
Open=1
• Background Information
• Product/Service Description
• Background
• Performance Requirements
• Vendor Survey
• Product Data
• Environmental Impact Considerations & Certification Requirements

DFARS Part #210
• Commercial Opportunities
• Industry Standards, Commercial Business Practices
• Technology Trends & Technology Insertion Opportunities
• Small Business Opportunities
• Terms and Conditions
• Government’s Presence/Leverage in the Market
• Conclusions and Recommendations
• Market Research Techniques Used

THANK YOU To Our Speaker
Johana Reed
McMahon, Welch and Learned, PLLC
jreed@mwllegal.com
703-483-2818

Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series

DFARS Part #210
Supplemental slides

DFARS Part #210
FAR 10.001(a)
(a) Agencies shall -
(1) Ensure that legitimate needs are identified and trade-offs evaluated to acquire items that meet those
needs;
(2) Conduct market research appropriate to the circumstances -
(i) Before developing new requirements documents for an acquisition by that agency;
(ii) Before soliciting offers for acquisitions with an estimated value in excess of the simplified acquisition
threshold;
(iii) 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;
(iv) Before soliciting offers for acquisitions that could lead to consolidation or bundling (15 U.S.C.
644(e)(2)(A) and 15 U.S.C. 657q);

DFARS Part #210
(v) Before awarding a task or delivery order under an indefinite-delivery-indefinite-quantity (ID/IQ) contract
(e.g., GWACs, MACs) for a noncommercial item in excess of the simplified acquisition threshold (10 U.S.C.
2377(c)); and
(vi) On an ongoing basis, take advantage (to the maximum extent practicable) of commercially available
market research methods in order to effectively identify the capabilities of small businesses and new entrants
into Federal contracting that are available in the marketplace for meeting the requirements of the agency in
furtherance of -
(A) A contingency operation or defense against or recovery from cyber, nuclear, biological, chemical, or
radiological attack; and
(B) Disaster relief to include debris removal, distribution of supplies, reconstruction, and other disaster or
emergency relief activities (see 26.205); and
(3) Use the results of market research to -
(i) Determine if sources capable of satisfying the agency's requirements exist;

DFARS Part #210
(ii) Determine if commercial items or, to the extent commercial items suitable to meet the agency's needs
are not available, nondevelopmental items are available that -
(A) Meet the agency's requirements;
(B) Could be modified to meet the agency's requirements; or
(C) Could meet the agency's requirements if those requirements were modified to a reasonable extent;
(iii) Determine the extent to which commercial items or nondevelopmental items could be incorporated at
the component level;
(iv) Determine the practices of firms engaged in producing, distributing, and supporting commercial items,
such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking;
(v) Ensure maximum practicable use of recovered materials (see subpart 23.4) and promote energy
conservation and efficiency;
(vi) Determine whether consolidation is necessary and justified (see 7.107-2) (15 U.S.C. 657q);
(vii) Determine whether bundling is necessary and justified (see 7.107-3) (15 U.S.C. 644(e)(2)(A));

DFARS Part #210
(viii) Determine whether the acquisition should utilize any of the small business programs in accordance
with part 19; and
(ix) Assess the availability of electronic and information technology that meets all or part of the applicable
accessibility standards issued by the Architectural and Transportation Barriers Compliance Board at 36 CFR part
1194 (see subpart 39.2).

DFARS Part #210
Section 816 of PL 109-163 reads:
SEC. 816. <<NOTE: 10 USC 2305 note.>> GUIDANCE ON USE OF TIERED EVALUATIONS OF OFFERS FOR CONTRACTS AND TASK ORDERS UNDER
CONTRACTS. (a) Guidance Required.--The Secretary of Defense shall prescribe guidance for the military departments and the Defense
Agencies on the use of tiered evaluations of offers for contracts and for task or delivery orders under contracts. (b) Elements.--The guidance
prescribed under subsection (a) shall include a prohibition on the initiation by a contracting officer of a tiered evaluation of an offer for a
contract or for a task or delivery order under a contract unless the contracting officer-- (1) has conducted market research in accordance with
part 10 of the Federal Acquisition Regulation in order to determine whether or not a sufficient number of qualified small businesses are
available to justify limiting competition for the award of such contract or task or delivery order under applicable law and regulations; (2) is
unable, after conducting market research under paragraph (1), to make the determination described in that paragraph; and (3) includes in
the contract file a written explanation of why such contracting officer was unable to make such determination.

DFARS Part #210
212.209 Determination of price reasonableness.
(a) In accordance with 10 U.S.C. 2377(d), agencies shall conduct or obtain market research to support the determination of the reasonableness of price for commercial
items contained in any bid or offer submitted in response to an agency solicitation. To the extent necessary to support such market research, the contracting officer—
(1) In the case of major weapon systems items acquired as commercial items in accordance with subpart 234.70, shall use information submitted under 234.7002(d);
and
(2) In the case of other items, may require the offeror to submit other relevant information
(b) If the contracting officer determines that the information obtained through market research pursuant to paragraph (a) of this section, is insufficient to determine the
reasonableness of price, the contracting officer shall consider information submitted by the offeror of recent purchase prices paid by the Government and commercial
customers for the same or similar commercial items under comparable terms and conditions in establishing price reasonableness on a subsequent purchase if the
contracting officer is satisfied that the prices previously paid remain a valid reference for comparison. In assessing whether the prices previously paid remain a valid
reference for comparison, the contracting officer shall consider the totality of other relevant factors such as the time elapsed since the prior purchase and any differences in
the quantities purchased (10 U.S.C. 2306a(b)).
(c) If the contracting officer determines that the offeror cannot provide sufficient information as described in paragraph (b) of this section to determine the reasonableness
of price, the contracting officer should request the offeror to submit information on—
(1) Prices paid for the same or similar items sold under different terms and conditions;
(2) Prices paid for similar levels of work or effort on related products or services;
(3) Prices paid for alternative solutions or approaches; and
(4) Other relevant information that can serve as the basis for determining the reasonableness of price.
(d) Nothing in this section shall be construed to preclude the contracting officer from requiring the contractor to supply information that is sufficient to determine the
reasonableness of price, regardless of whether or not the contractor was required to provide such information in connection with any earlier procurement. If the contracting
officer determines that the pricing information submitted is not sufficient to determine the reasonableness of price, the contracting officer may request other relevant
information regarding the basis for price or cost, including uncertified cost data such as labor costs, material costs, and other direct and indirect costs.

DFARS Part #210
234.7002 Policy.
(a) Major weapon systems.
(1) A DoD major weapon system may be treated as a commercial item, or acquired under procedures established for the acquisition of commercial items, only if—
(i) The Secretary of Defense determines that—
(A) The major weapon system is a commercial item as defined in FAR 2.101; and
(B) Such treatment is necessary to meet national security objectives; and
(ii) The congressional defense committees are notified at least 30 days before such treatment or acquisition occurs. Follow the procedures at PGI 234.7002 .
(2) The authority of the Secretary of Defense to make a determination under paragraph (a)(1) of this section may not be delegated below the level of the Deputy
Secretary of Defense.
(b) Subsystems. A subsystem of a major weapon system (other than a commercially available off-the-shelf item) shall be treated as a commercial item and acquired under
procedures established for the acquisition of commercial items if—
(1) The subsystem is intended for a major weapon system that is being acquired, or has been acquired, under procedures established for the acquisition of
commercial items in accordance with paragraph (a) of this section; or
(2) The contracting officer determines in writing that the subsystem is a commercial item.
(c) Components and spare parts.
(1) A component or spare part for a major weapon system (other than a commercially available off-the-shelf item) may be treated as a commercial item only if—
(i) The component or spare part is intended for—
(A) A major weapon system that is being acquired, or has been acquired, under procedures established for the acquisition of commercial items in accordance
with paragraph (a) of this section; or
(B) A subsystem of a major weapon system that is being acquired, or has been acquired, under procedures established for the acquisition of commercial items
in accordance with paragraph (b) of this section; or
(ii) The contracting officer determines in writing that the component or spare part is a commercial item.

DFARS Part #210
(2) This paragraph (c) shall apply only to components and spare parts that are acquired by DoD through a prime contract or a modification to a prime contract, or
through a subcontract under a prime contract or modification to a prime contract on which the prime contractor adds no, or negligible, value.
(d) Relevant information. See 212.209(a) for requirements of 10 U.S.C. 2377 with regard to market research.
(1) To the extent necessary to make a determination of price reasonableness, the contracting officer shall require the offeror to submit prices paid for the same or
similar commercial items under comparable terms and conditions by both Government and commercial customers.
(2) If the contracting officer determines that the offeror cannot provide sufficient information described in paragraph (d)(1) of this section to determine the
reasonableness of price, the contracting officer shall request the offeror to submit information on—
(i) Prices paid for the same or similar items under different terms and conditions;
(ii) Prices paid for similar levels of work or effort on related products or services;
(iii) Prices paid for alternative solutions or approaches; and
(iv) Other relevant information that can serve as the basis for a price reasonableness determination.
(3) If the contracting officer determines that the information submitted pursuant to paragraphs (d)(1) and (2) of this section is not sufficient to determine the
reasonableness of price, the contracting officer shall request the offeror to submit other relevant information, including uncertified cost data. However, no uncertified cost data
may be required in any case in which there are sufficient non-Government sales of the same item to establish reasonableness of price.
(4) An offeror shall not be required to submit information described in paragraph (d)(3) of this section with regard to a commercially available off-the-shelf item. An
offeror may be required to submit such information with regard to any other item that was developed exclusively at private expense only after the head of the contracting
activity determines in writing that the information submitted pursuant to paragraphs (d)(1) and (2) of this section is not sufficient to determine the reasonableness of price.
(5) An offeror may submit information or analysis relating to the value of a commercial item to aid in the determination of the reasonableness of the price of such item. A
contracting officer may consider such information or analysis in addition to the information submitted pursuant to paragraphs (d)(1) and (2) of this section. For additional
guidance see PGI 234.7002(d)(5).

DFARS Part #210
FAR 10.001(c)(2)(i) and (ii)
(c) If an agency contemplates consolidation or bundling, the agency-
(1) When performing market research, should consult with the agency small business specialist and the local Small Business Administration procurement center representative (PCR).
If a PCR is not assigned, see 19.402(a); and
(2) Shall notify any affected incumbent small business concerns of the Government's intention to bundle the requirement and how small business concerns may contact the
appropriate Small Business Administration procurement center representative (see 7.107-5(a)).
205.205-70 Notification of bundling of DoD contracts.
(a) When a proposed acquisition is funded entirely using DoD funds and potentially involves bundling, the contracting officer shall, at least 30 days prior to the release of a
solicitation or 30 days prior to placing an order without a solicitation, publish in FedBizOpps.gov (or any successor site) a notification of the intent to bundle the requirement.
In addition, if the agency has determined that measurably substantial benefits are expected to be derived as a result of bundling, the notification shall include a brief
description of those benefits (see FAR 7.107).
(b) This requirement is in addition to the notification requirements at FAR 10.001(c)(2)(i) and (ii).

DFARS Part #210
PGI 210.070 Market research report guide for improving the tradecraft in services acquisition.
The “Market Research Report Guide for Improving the Tradecraft in Services Acquisition” is designed to effect the collection and sharing of standardized market research information across
the Department. The guide is available for download at http://www.acq.osd.mil/dpap/cpic/cp/market_research.html
PGI 215.371-2 Promote competition.
(a) For competitive solicitations in which more than one potential offeror expressed an interest in an acquisition, but only one offer was ultimately received, the Contracting Officer
shall—
(1) Seek feedback (e.g., issue an RFI) after award from potential offerors expected to submit an offer; and
(2) Document any feedback received in the contract file.
(b) Agencies shall use any feedback received when considering how to overcome barriers to competition for future requirements.

Government Contracting - DFARS Part 210 - Market Research - Win Federal Contracts

Recommended

Recommended

More Related Content

More from JSchaus & Associates

More from JSchaus & Associates (20)

Recently uploaded

Recently uploaded (20)

Government Contracting - DFARS Part 210 - Market Research - Win Federal Contracts

Editor's Notes