This lesson provides a brief overview and background of market research and its' importance to the
Department of Defense (DOD) acquisition process.
Market research has become more important than ever in the DOD acquisition process. Public and private organizations as well as economy as a whole are moving towards greater outsourcing of products, services, and technologies.
The DOD and its component military services and agencies are no exception.
As this trend accelerates, DOD acquisition personnel need to understand commercial practices that have been commonplace in the private sector.
The acquisition reform initiatives aimed at providing government purchasing officials with greater procurement flexibility have contributed to DODs growing utilization of the commercial marketplace's capabilities and the commensurate need for increased market research practices.
The Federal Acquisition Regulation (FAR) and DFARS
(Defense Supplement to the FAR) have been crafted to encourage government contracting personnel to leverage the experience and ideas of the commercial sector. The following FAR Parts have been re-focused to encourage DOD utilization of existing commercial capabilities: FAR Part 11 Describing Agency Needs
FAR Part 12 Acquisition of Commercial Items
FAR Part 37 Service Contracting
Increased Participation
Another factor that has made market research more important is the need for DOD contracting personnel to use commercial methods to attract potential suppliers that have not traditionally participated in the government acquisition arena.
Ways to better leverage private-sector capabilities and encourage participation include:
Best value competitions
Performance-based work scopes
Incentive-based contract arrangements
In an effort to increase participation, DOD contracting personnel are expected to involve and encourage end users to participate in the products and services acquisition planning