6.2 Market Research (FAR Part 10)

6.2 Market Research (FAR Part 10)

Quick Answer: FAR Part 10 requires market research so the Government understands commercial availability, sources, and practices before writing restrictive requirements and before soliciting offers. Document techniques used and conclusions. Research drives Part 12 commercial paths, competition, small business strategy, and realistic cost/schedule assumptions—do not reverse-engineer research after picking a sole source.

If Part 7 is the spine of Plan Solicitation, Part 10 market research is the sensory system. Without it, acquisition plans invent capabilities that do not exist, default to brand-name-only specs, miss commercial products already on the market, or walk into sole-source justifications that will not survive scrutiny.

Purpose of market research

Market research is collecting and analyzing information about capabilities in the market to satisfy agency needs. FAR Part 10’s policy direction is practical: agencies must conduct market research appropriate to the circumstances:

• Before developing new requirements documents
• Before soliciting offers for acquisitions above applicable thresholds/conditions set in Part 10 and agency practice
• On an ongoing basis to the maximum extent practicable, so the Government remains current on marketplace developments

Market research is not optional background reading for the technical office alone. Contracting professionals must ensure research is adequate for the business decisions the CO will sign.

Ongoing vs one-time research

Exam cue: For recurring needs, “we did market research five years ago for a different model” may be stale. Part 10 expects research appropriate to the circumstances—complexity, dollar value, urgency, and how fast the market moves. High-change markets (software, medical devices, cybersecurity services) need fresher looks than stable commodities.

Techniques (scaled, not exhaustive busywork)

Part 10 contemplates a flexible toolkit. Match intensity to risk and value:

Fairness note: When you exchange information with industry pre-solicitation, preserve competitive integrity—share material information so no firm gains an unfair advantage, and document contacts consistent with agency practice and ethics rules (ties to Guiding Principles and Part 3 themes).

You do not need every technique on every buy. A simplified commercial buy may rely primarily on catalogs, recent prices, and a quick source scan. A major system support services acquisition may need RFIs, industry day, and deep capability analysis.

How research drives the commercial vs noncommercial path

A central Part 10 / Part 12 connection:

1. Research whether commercial products or commercial services can meet the need (definitions live in Part 2; procedures in Part 12).
2. If commercial items can meet the need, prefer commercial acquisition approaches—often with more flexible terms and reliance on commercial market pricing practices.
3. If the need cannot be met commercially, document why and proceed under noncommercial procedures with appropriate clauses and cost/price analysis expectations.

Exam trap: Writing a custom military-unique specification for a product sold commercially in substantially the same form, then declaring “noncommercial because we always do it that way.” Market research should have pushed the team toward commercial descriptions and Part 12 procedures when they fit.

Exam trap: Calling something commercial solely to avoid cost analysis or competition documentation without research support. Commerciality is a definitional determination, not a convenience label.

Competition and small business outcomes

Market research feeds:

• Part 6 competition strategy — Are there two or more capable sources? If only one appears, is that because the requirement is unduly restrictive?
• Part 19 small business — Is there a reasonable expectation of offers from two or more responsible small businesses (rule-of-two thinking at principle level for set-asides)?
• Part 8 required sources — Are mandatory sources or existing vehicles appropriate before open-market strategies?

When research shows a healthy small-business market for the requirement, planning that ignores set-aside analysis is incomplete. When research shows only large businesses can perform, document capability findings rather than silently defaulting.

Documenting market research

Documentation is how research becomes a defensible file artifact. Capture:

Insufficient: “Market research conducted. Multiple sources exist.” Sufficient: Summarize how you know, what you found, and what decision it supports.

For other-than-full-and-open competition, weak market research is a JOFOC killer. For commercial determinations, weak research undermines Part 12. For price analysis later, weak research leaves you without comparison anchors.

Sources of market data (practical map)

Always validate vendor marketing claims. Capability brochures are not performance history.

Exam scenarios and traps for skipping research

Scenario A — Sole source first, research second. A colonel directs award to a preferred firm “because they already know our system.” The program office drafts a JOFOC, then asks contracting to “do market research to support it.” Correct approach: Conduct independent market research into the requirement before accepting a sole-source narrative; if other sources exist or the requirement can be rewritten to enable competition, do not force a predetermined JOFOC.

Scenario B — Brand-name only with no research. A requisition specifies Brand X “or equal” language missing, or true brand-name-only without justification. Correct approach: Research equivalents; require brand-name justification if truly necessary; promote competition.

Scenario C — Stale research for a fast-moving market. Research from three years ago is reused for cloud security services. Correct approach: Refresh research appropriate to market velocity.

Scenario D — Research proves commercial, plan ignores it. Market research shows commercial SaaS meets the need; the plan still treats the buy as developmental noncommercial with heavy unique clauses. Correct approach: Align strategy with research—consider Part 12 path and commercial terms.

Scenario E — Checkbox research. A specialist pastes three Google links into a form without analysis. Correct approach: Inadequate; research must support conclusions that drive decisions.

Linking Part 10 to Plan Solicitation decisions

Use this closed-book decision chain:

1. Define the need at outcome level (Part 7 start).
2. Research the market (Part 10).
3. Decide commerciality and refine the requirement (Parts 2/10/12).
4. Shape competition / small business / required sources (Parts 6, 8, 19).
5. Select procedures (Parts 12, 13, 15 as applicable).
6. Update the acquisition plan so the file tells one coherent story.

If step 2 is skipped, every later step is guesswork.

CON 3990V memory anchors

• Part 10 = learn the market before you write and before you solicit.
• Document methods + conclusions, not slogans.
• Research drives Part 12 vs noncommercial, competition, and small business—not the reverse.
• Scale effort to complexity; never scale to zero for significant decisions.
• Urgency may compress research, but does not erase the duty to gather what is practicable.

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Bottom line: FAR Part 10 market research equips the acquisition team with evidence about commerciality, sources, practices, and prices before requirements harden and offers are sought. Document what you did and how it changes strategy. On CON 3990V, reverse-engineered research, stale findings, and checkbox memos are wrong answers—use research to discover the market, not to decorate a predetermined vendor choice.