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Market Research Larry Floyd, DAU

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1 Market Research Larry Floyd, DAU
Acquisition Community Symposium Understanding the Nuts and Bolts of Acquiring Services

2 Discussion Topics Market Research – The Basics
DoD Market Research - Current Efforts Professional Services Market Segment - Recent Research Results and Implications DAU Training Opportunities

3 Market Research - Step 3 of 7-step Process
Sub-elements 3.1 Take a team approach to market research 3.2 Determine data sources 3.3 Develop a standardized interview guide 3.4 Conduct market research (include both providers and consumers) 3.5 Request information from service providers 3.6 Analyze market research 3.7 Document market research and trends 2. Review Current Strategy 3. Market Research 4. Requirements Definition 5. Acquisition Strategy 6. Execute Strategy 7. Performance Management Mission Requirement 1. Form the Team Results SB Users Tech Legal PEOs PCO Buyers QA Reps CORs Resource Mgt Proj. Mgr Stakeholders Acquisition Team Service Acquisition Process

4 Sources of Information
? Sources of Information What experience have you had conducting Market Research? What are some good sources of Market Research data? What are some of the challenges associated with compiling Market Research data? Typically, a student’s concept of Market Research will be limited to searching for sources of supply and historical pricing data. Sources will typically be limited to the internet (GSA website) and contract writing systems. Dynamic Small Business Search CCR Challenges: time and expertise

5 Sources of Information (cont'd)
POTENTIAL SOURCES OF MARKET INFORMATION SECONDARY RESEARCH Wall Street Analyst reports on industries and companies (e.g. Thomson, a consolidated resource for analyst reports) Company 10K and annual reports Research providers (e.g. Gartner, AMR Research, IBIS World, Forrester, etc.) Industry publications/journals Industry associations General news sources Internet research Government databases/tools, including MaxPrac Analysis Tool (OSBP) PRIMARY RESEARCH Interviews with: Industry experts (e.g. Wall Street analysts, associations, etc.) Companies/suppliers Trade associations Internal Experts Industry Engagement RFI (request for Information) Supplier perception surveys Industry days One-on-one interactions There is also a list of Market Research sources in Appendix D of the Guidebook for the Acquisition of Services. For more information on conducting effective Market Research, see DAU course CON 170. Key Takeaways: Use several sources of data Typically begin with secondary sources to get an overview of the industry and companies While industry engagement is an extremely valuable source, it can often be one-sided and biased Consult multiple market research sources to ensure a comprehensive and un-biased analysis of a market Use primary research as needed Some market analysis efforts warrant outreach through targeted interviews where secondary data is not available or may be too limited Requires core skills in interviewing and facilitation to derive useful information MaxPrac is an analytic methodology which uses Federal Procurement Data System (FPDS) acquisition data to identify potential opportunities for increased small business participation in unclassified contract awards. The key takeaways are to use several sources of data and to use primary research as needed Source: Censeo Consulting, Market Intelligence Webinar, 2010

6 Public-Sector Counterparts
Cross-agency cooperation and collaboration Consider DoD and non-DoD public agencies May even find solutions with state and local agencies Many federal agencies have “solved” your problem Could provide services through an interagency agreement or through an existing multiple-award contract vehicle Agencies with similar needs may be able to provide lessons learned and best practices While many are familiar with examining private-sector sources and solutions as part of market research, looking to the public-sector is not as common a practice. Yet it makes a great deal of sense on several levels. First, there is an increased interest in cross-agency cooperation and collaboration. If the need is for help desk support, for example, many federal agencies have “solved” that problem and could potentially provide services through an interagency agreement or through an existing multiple-award contract vehicle. Alternatively, it could be that to provide seamless services to the public, two or more agencies need to team together to acquire a solution. Second, agencies with similar needs may be able to provide lessons learned and best practices. For example, the Department of Commerce COMMITS office has frequently briefed other agencies on the process of establishing a Government-wide Agency Contract (GWAC). (See ) Another agency that we are aware of is now conducting public-sector market research about seat man­agement implementation in the federal government. So it is important for the integrated solutions team to talk to their counterparts in other agencies. Taking the time to do so may help avert problems that could otherwise arise in the acquisition

7 Private Sector Companies
Contact with vendors and suppliers for purposes of market research is encouraged Should understand commercial offerings, capabilities, and business practices Some of the traditional ways to do this include Issue “sources sought” type notices Requests for Information Hold pre-solicitation conferences Cold Call! Pick up the phone and call company representatives With regard to the more traditional private-sector market research, it is important to be knowledgeable about commercial offerings, capabilities, and practices before structuring the acquisition in any detail. This is one of the more significant changes brought about by acquisition reform. Some of the traditional ways to do this include issuing “sources sought” type notices at FedBizOps.gov, conducting “Industry Days,” issuing Requests for Information, and holding pre-solicitation conferences. But it is also okay to simply pick up the phone and call private-sector company representatives. Contact with vendors and suppliers for purposes of market research is now encouraged. In fact, FAR (a) specifically promotes the exchange of information “among all interested parties, from the earliest identification of a requirement through receipt of proposals.” The limitations that apply (once a procurement is underway) are that prospective contractors be treated fairly and impartially and that standards of procurement integrity (FAR 3.104) be maintained. But the real key is to begin market research before a procurement is underway.

8 One-on-One Meetings With Industry
FAR (c)(4) includes one-on-one meetings with potential offerors as one technique for promoting early exchanges of information One-on-one meetings are more effective than pre-solicitation or pre-proposal conferences Effective in focusing on: Commercial and industry best practices Performance metrics and measurements Innovative delivery methods for the required services Incentive programs that providers have found effective One-on-ones can: Expand the range of potential solutions Change the very nature of the acquisition Enhance the performance-based approach Be your first step to an “incentivized” partnership FAR (f) provides “General information about agency mission needs and future requirements may be disclosed at any time.” While many may not realize it, one-on-one meetings with industry leaders are not only permissible -- see Federal Acquisition Regulation (c)(4) -- they are more effective than pre-solicitation or pre-proposal conferences. Note that when market research is conducted before a solicitation or performance work statement is drafted, the rules are different. FAR (f) provides, for example: “General information about agency mission needs and future requirements may be disclosed at any time.” Since the requirements have not (or should not have) been defined, disclosure of procurement-sensitive information is not an issue. It is effective to focus on commercial and industry best practices, performance metrics and measurements, innovative delivery methods for the required services, and incentive programs that providers have found particularly effective. This type of market research can expand the range of potential solutions, change the very nature of the acquisition, establish the performance-based approach, and represent the agency’s first step on the way to an “incentivized” partnership with a contractor.

9 DoD-wide Market Research Current Efforts
DoD Vendor Communication Plan (Draft) Emphasizes frequent, fair, level and transparent communications Joint DoD Market Research Working Group recently formed Conduct market research and share information Draft DoD Guide, “Market Research Report Guide for Improving the Tradecraft in Services Acquisition” Launch Market Research/Market Intelligence website in May 2012

10 Market Research Results Professional Services Segment
Aerospace Industries Association, National Defense Industrial Association, Professional Services Council jointly assessed potential industrial base impacts from severe budget reduction scenarios by convening a joint Defense Industrial Base Task Force in 2011 Small, medium and large aerospace and defense companies across market segments (manufacturing and services) Twenty-eight (28) companies rankend in Defense News’ Top 100 Defense Companies Provided report results to SecDef on 11 Nov 2011 Professional Services Council issued its own addendum to the joint Task Force report – Summary follows 

11 Market Research: Professional Services
Keh Market Research Topics Data Market Segmentation See following slide Market Size $140.8B market (DOD spend, FY 11) Market Growth From 2010 to 2011: began to decline overall Professional services market underperformed the overall federal budget for the first time in a decade Cybersecurity, IT, equipment maintenance are expected to stay in high demand for the future and will remain stable at a low share of the budget cuts Surge of weapons, equipment and services to the battlefield and OCO in a manner DOD has come to expect Government Market Government investment and associated service providers’ access to capital will likely decrease Large numbers of jobs will be lost, innovation will be reduced, and the ability to support rapid response OCO will be diminished as a result of cuts to services spending. Trending toward insourcing and mgt support services reduction Source: AIA/NDIA/PSC Survey

12 Aircraft, Ships/Submarines
Total DoD Dollars Obligated in FY11 Goods Obligations Services $ B Clothing, Textiles & Subsistence ( $ 17.2 B, 10%) Construction Services ( $ 19.3 B, 10%) Aircraft, Ships/Submarines & Land Vehicles ( $ 61.1 B, 35%) Research & Development ( $ 38.5 B, 19%) Facilities S&E ( $ 10.2 B, 6%) Facilities Related Services ( $ 28.2 B, 14%) Transportation Services ( $ 9.7 B, 5%) Sustainment S&E ( $ 44.3 B, 25%) Medical Services ( $ 13.8 B, 7%) Knowledge Based Services ( $ 52.5 B, 26%) Weapons & Ammunition ( $ 19.2 B, 11%) Miscellaneous S&E ( $ 0.9 B, <1%) Electronics & Communications ( $ 19.2 B, 10%) Fiscal Year 2011 data is depicted here DOD wide We will show you Army data in a moment The take away here is that Services is BIG business with the Department Since it’s BIG business and easier to reduce than large Weapon Systems Services are easier to reduce in austere times Electronic & Communication Equipment ( $ 22.3 B, 13%) Equipment Related Services ( $ 17.4 B, 9%) Goods ( $ B ) (47%) Services ( $ B ) (38%) Note (a): FY11 spend pulled from FPDS – NG.gov, run Jan 3, 2012 Note (b): Excludes awards made by civilian agencies on behalf of DoD customers Note (c): Dollars and percents may not add due to rounding R&D/Construction ( $ 57.8 B ) (15%)

13 Market Research: Professional Services(cont’d)
Key Market Research Topics Data Value Chain Industrial base could be significantly damaged as quality suppliers exit the market and higher risk suppliers take their place, e.g. Overseas Contingency Operations Quantifying impacts on reduced spending is near impossible due to high degree of nonperformance-based contracts being used Many service contracts are associated with current and planned defense programs, and services that support the department’s analytical and planning activities, i.e. knowledge-based services Cost Structure Direct Labor is the major cost component (34%) Value chain: why do we hire others to provide subject matter expertise, logistics services ? How are we going to evaluate this service? Source: AIA/NDIA/PSC Survey

14 Market Research: Professional Services (cont’d)
Key Market Research Topics Data Cost Drivers Local and job-specific wage rates Compliance with federal regulations (all types) Compliance with requirements to provide pricing data during negotiations and earned value data during performance Time required to compete source selection (PALT and churn) Use of labor-saving equipment Pricing During the recession, customers have relied on price competition, leading to falling revenue T&M/L-H contracts are common – trending away Different response times and service levels are associated with different price points (i.e., higher service levels cost more) Funding stability Governance through Continuing Resolutions limits ability to execute programs and negotiate contracts efficiently Value chain: why do we hire others to provide subject matter expertise, logistics services ? How are we going to evaluate this service? Source: AIA/NDIA/PSC Survey

15 Market Research: Professional Services (cont’d)
Key Market Research Topics Data Business Size Small businesses (SB) dominate the services sector in both numbers and capabilities SBs do not dominate sector in dollar value of awards In fiscal years small businesses awarded 23% of all service contract dollars Significant dollar market share in IT, professional and administrative services, and maintenance of real property Mid-tier business are continually “squeezed” by large and SBs Competitive Dynamics Low barriers to entry Light regulation High level of competition Market Trends Increased use of low-price technically acceptable best value method Buyers targeting vendor profit margins for budgetary cost savings Source: AIA/NDIA/PSC Survey

16 Market Research: Professional Services (cont’d)
Key Market Research Topics Data Performance Metrics Generally based on: Response time Complaints threshold Examples: Response within 4 hours 90-95% of the time (examples vary) No more than 0-2 complaints per quarter (examples vary) Focus Areas to help mitigate impacts of budget cuts Buyer-seller collaborative communications Open review overly burdensome administrative processes Avoid using vendor profit margins as arbitrary sources of cost savings Reiterate importance of best value tradeoff process for complex, mid-to-high-end services Immediately enhance performance management of services contracts Source: AIA/NDIA/PSC Survey

17 DAU Training Opportunities
Opportunity Description CLC 004 Market Research: 3-hour online learning module (http://icatalog.dau.mil/) Service Acquisition Mall Service Acquisition Mall: 7-step process portrayed in online videos, tools and templates available 24x7 (http://sam.dau.mil) ACQ 265 Mission Focused Services Acquisition: 4-day, 7-step process resident classroom case-based course (Apply through Unit training monitor) TTC 014 Service Acquisition Workshop: 4-day, 7-step process intact team training facilitated workshop (http://icatalog.dau.mil/onlinecatalog/courses.aspx?crs_id=1631) Community of Practice Market Research Knowledge Repository website hosted on Acquisition Community Connection (coming not later than May 2012) Source: DAU icatalog and ACC

18 How to Apply This Information
Remember: Market Research is a continuous process Use it to: Identify acquisition risks and/or information to mitigate risks Identify current and emerging market trends Understand market dynamics Is this a Commercial service? Are there capable Small Businesses? Is it a Competitive Market? Identify your leverage in the market Understand that requesting information from suppliers is critical

19 BACK-UP SLIDES CON 280, Day 2

20 Market Research Analysis
Collect Market Data: Define Market Segments Develop View of Basic Market Data Understand Value Chain and Cost Drivers Identify Market Competitive Dynamics Review External Best Practices Assess from many angles: New technologies Pricing/Value Comparisons Market Trends (Supply/Demand) Competition Market Leverage Small Business Opportunities Compare/Contrast to Needs Performance Metrics Conduct Market Analysis: The main goal of market research analysis is transforming market data into market intelligence. Market Research Report Business Case for Change Whole Team reviews assessments

21 Key Market Research Topics
Define Market Segments Develop View of Basic Market Data Understand Value Chain and Cost Drivers Identify Market Competitive Dynamics Review External Best Practices In discussing this section, the Facilitator should weave in examples/documentation from the Case Study materials. Facilitator should try to associate specific artifacts (e.g., market research reports/information for each of the IOSS services) with each of the key market research topics listed . The Facilitator can then present each slide and use the Case Study materials as the basis for the discussion. Source: Censeo Consulting Group

22 Key Elements of Market Segmentation
Understanding how the supply market is segmented helps focus analysis and target key suppliers. Element Questions Addressed Through Market Segmentation Identify Market Segments How do suppliers of IOSS services segment or differentiate themselves? How do customers view market segments for IOSS requirements? What are the relevant segmentation variables? Identify Relevant Segments Which segments are most relevant for the commodity being purchased? How do the segments line up with our purchasing requirements? How do the segments line up with our organization structure? Discuss key topics based on Market Research artifacts and class experiences. Source: Censeo Consulting Group

23 Key Analytical Elements of Basic Market Data
Market trends, growth rates, pricing practices and other key market data provide useful business context for understanding the industry as a whole. Element Questions Addressed Through Understanding Basic Market Data Market Size What is the annual revenue for the IOSS services market? Market Growth What is the historical growth rate for this market? For each segment? What is the projected growth rate? For each segment? Pricing Analysis How are products/services priced for this market? For each segment? What are the trends in pricing in the IOSS services market? Market Share Who are the key players in each segment? What is each player’s share of the market? How fragmented is the market? How many suppliers are there? What share of the market does the Government represent (as a customer)? Small Business What is the role of small businesses in this market? For each segment? Do small businesses have different capabilities? Facilitator should define terms as needed. Discuss key topics based on Market Research artifacts and class experiences. Source: Censeo Consulting Group

24 Key Elements of Industry Value Chain and Cost Driver Analysis
An analysis of an industry’s value chain and key drivers of cost provides additional insights into acquisition strategy options Element Key Questions Addressed Through Understanding Value Chain & Cost Drivers Identify Value Chain What is the value chain for the relevant market segments? What other industries are involved in the value chain? What insights does it reveal? Understand Cost Structure & Profitability What are the different elements of IOSS services suppliers’ cost structure? What is the profitability / margin for these suppliers? Identify Cost Drivers What are the main cost drivers for the main elements of the IOSS services suppliers’ cost structure? What insights can we derive? Identify Influence Options Which cost drivers can we influence? What might we be able to do differently in our approach to acquisitions, management of supply relationships, and other internal processes that might help lower suppliers’ total cost to serve us as a customer? Poll the students on their familiarity with the term “value chain”. Discuss a typical value chain for a manufactured item first (e.g., a PC, with the chain going from component suppliers to assemblers/manufacturers through distributors to value-added resellers/ other sales channels) – or use a product with which you/the students are more familiar. The value chain for services may be more difficult to describe; the basic inputs are time, knowledge, equipment, and systems. The components of the value chain can help you think about the underlying cost structure and profitability of the process you are evaluating. The total cost is made up of cost elements. Each cost element has cost drivers that impact the value of the cost element. For example, for the cost element of Wages, cost drivers include labor category skill level, local labor market, assignment duration, etc. Source: Censeo Consulting Group

25 Market Competitive Dynamics: Key Elements of Competitive Analysis
Understanding the competitive environment of a market may provide insights into supplier behaviors and possible negotiation levers . Element Key Questions Addressed Through Analysis of Market Competition Determine Competitive Environment How do suppliers in the IOSS services market compete? What are the key differentiators? Are there new entrants into the supply market? What are the alternatives or substitutes for this product or service? Identify Buyer Leverage How significant is our business to the supplier? What is the criticality of this product or service to fulfilling our mission? What are the costs associated with switching suppliers? What are the costs associated with switching to an alternative or substitute? Identify Key Trends Are there any trends that influence buyer power in the supply market? Are there any economic factors that influence buying power? Discuss key topics based on Market Research artifacts and class experiences. Source: Censeo Consulting Group

26 Key Elements of Best Practices Research
A review of the acquisition approaches used by other Government agencies and the private sector can potentially identify best practices to be incorporated into the team’s acquisition strategy . Element Key Questions Addressed Through Analysis of External Best Practices Government Best Practices How do other Government agencies who procure IOSS services approach such acquisitions? What internal processes or policies are in place at other agencies to facilitate efficient acquisitions of IOSS services? Commercial Best Practices How are large commercial organizations addressing acquisition of IOSS services? What approaches, tactics and practices are considered most effective in the commercial market? How applicable are commercial best practices to the Government context? Are there specific metrics, targets or other measures of effectiveness in the commercial sector that can be incorporated into Government acquisition and management of this commodity? Discuss key topics based on Market Research artifacts and class experiences. Source: Censeo Consulting Group

27 Market Research Template
Market Research Report Guide for Improving the Tradecraft in Services Acquisition (DRAFT), April 2012 Prepared by the Joint Market Research Working Group for OSD Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices.

28 Market Research Documentation
At a minimum the Market Research Report should: Explain the needs driving the acquisition Identify the team members Discuss approach taken to conduct the research Identify sources contacted Summarize learning, including positives and negatives Enable the team to make decisions concerning direction Beyond that the Market Research Report should: Be written in a clear, non-bureaucratic style Be scoped appropriately for the size/nature of the acquisition Be updated as the acquisition continues Be useful to other teams with same/similar assignments Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: ACQ 265, Service Acquisition Workshop

29 Market Research Documentation
Market Research Objectives Guidance: What do you hope to gain from market research? Refinement of the requirement in industry terms. Increased competition. Increased small business participation. Understanding of cost. Develop effective contract structure Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

30 Market Research Documentation
Service Description Guidance: Include a description of the service to be addressed by this market research report. What is the service? What are the components or elements of the service? When is the service required? Where will the service be performed? Are there unique requirements? Are there mandatory source requirements? What other government agencies are buying the service? What current contract vehicles are available? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

31 Market Research Documentation
Background Guidance: Provide a short narrative on the requirement for which this service will support. Include information relative to the previous awards such as: Is the requirement new? If not, how long has the service been required? Is there available market research information already done by others in government? What past acquisition strategies were used? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

32 Market Research Documentation
Background (cont’d) What past government work has been performed by potential suppliers? What past efforts have been taken to remove competitive barriers? What are some problems encountered during past contract performance? What is the past performance baseline? What changes have occurred in the market place (suppliers, trends, technologies)? What are the lessons learned/best practices? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

33 Market Research Documentation
Potential Supplier Information Guidance: build the list of potential vendors and known sources that could be solicited to provide the service required. Identify name, location, point of contact and an assessment of their capabilities to meet our requirements in terms of performance, cost, schedule and risk. Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

34 Market Research Documentation
Potential Supplier Information (cont’d) Identify the number of sources contacted; identify whether they were large business, small business, small/disadvantaged business, Section 8A business, woman-owned business, government/non-government. Describe efforts to locate sources and explain the rational used to exclude sources. Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

35 Market Research Documentation
Small Business Opportunities Guidance: Provide an assessment of the potential opportunities for small business set aside and direct award opportunities. Is the service suitable for small business? Can the requirement be segmented to include small business? AbilityOne Program Guidance: In accordance to FAR (2011) Part 8.002(a)(2), determine if the service is provided by the AbilityOne Program (www.abilityone.gov) Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

36 Market Research Documentation
Performance Requirements Guidance: State the critical performance requirements which the service must meet. What are the performance requirements and how are they measured? If the requirement is not performance based, why? Are the requirements military unique or can be they be acquired in the commercial marketplace? What are the performance trade-offs to better accommodate the commercial market? How does industry sell the service and are the requirements written in those terms? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

37 Market Research Documentation
Market Intelligence Guidance: Describe any available commercial factors. What is the availability of the service? What is the demand for the service? What is the maturity of the service? How many suppliers are in the market and market share? What is the Government’s market share? What is the pricing structure? What is the small business footprint? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

38 Market Research Documentation
Market Intelligence (cont’d) Are socio-economic factors applicable? What is the supply chain? How are the services segmented? What business, trade, legal, political and other developments affect the market? What is fair/reasonable market price for the industry, which may include an assessment of available price data, price ranges, known pricing issues, or an explanation of price variations? Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

39 Market Research Documentation
Market Intelligence (cont’d) What are the applicable industry standards, regulations, trade journals, or process guides germane to the service to be acquired? Identify any known environmental or safety regulations that affect the service being provided. Identify standard industry terms and conditions offered to commercial customers in the market place. Provide your assessment of the government’s leverage in the marketplace, such as being the only buyer, making a minority of buys in the market, making the majority of buys, or being one buyer among many. Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

40 Market Research Documentation
Conclusions and Recommendations Guidance: Summarize your data analysis with recommendations for: acquisition strategies to pursue (i.e. Commercial acquisition, 8A direct, small business set aside, sole source, full & open, native American direc or Hubzone) list of potential contract vehicles that already exist which may be employed to satisfy your requirement Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

41 Market Research Documentation
Conclusions and Recommendations (cont’d) quality and thoroughness of the government’s technical performance documents and configuration control data to include suggestions for improvement before contract solicitation relevant risks to be considered as part of any source selection activities specific contract terms and conditions Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012

42 Market Research Documentation
Market Research Techniques Used Guidance: Describe the various methods used to arrive at the market research findings. Examples of techniques that may be used are: Internet searches, industry days, one-on-one industry sessions, Requests for Information (RFIs) to Industry (Solicitation for Information or Planning Purposes), Commerce Business Daily announcements, etc. Note to Facilitator: There is a quiz question related to the fact that Market Research should be updated as the acquisition continues and that Market Research aids in identifying potential sources, acquisition methods, and best practices. Source: MARKET RESEARCHREPORT GUIDE FOR IMPROVING THE T RADECRAFT IN SERVICES ACQUISITION , April 2012


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