Market Research . . . and other acquisition considerations March 6, 2014 For HHS Small Business, Contracting and Progr

1. Market Research . . . and other acquisition considerationsMarch 6, 2014For HHS Small Business, Contracting and Program Staff BY: Barbara Weaver, PCR-CMR, SBA-OGC, Area II

2. PCR – Procurement Center Rep Review procurement actions issued by federal agencies Help make decisions about small business set-asides [SDB, 8(a) WOSB, HZSB, SDVets] CMR – Commercial Market Rep Monitor small business programs of large federal prime contractors Conduct compliance reviews Inform COs of findings PCR-CMR Role

3. PCR Operations PCRs help ensure that a fair portion of agency purchases go to small businesses of all types by: • representing SBA at major buying activities • reviewing proposed acquisitions, including bundled procurements • recommending requirements to be set-aside for small businesses • advising agencies & small businesses on SBA programs • initiating secretarial appeals FAR Part 19.402

4. What PCRs See • Form 653 • JOFOC • Statement of Work • Acquisition Plan • Market Research • Government Estimate • ….anything else needed to make a determination

5. SBA-HHS Plan of Operations • 13 CFR 125 and FAR Part 19 • Review all unrestricted actions over $150,000 • Conduct periodic review/training • Review task/delivery orders [+$2 Million] placed against MACs, MAS, GWACs for bundling • Review subcontracting plans over $650,000

6. Background Information • HHS PCR Change – August 6, 2013 • 153 procurement actions reviewed to 9-30-13 • 22 of 153 actions set-aside for SB – 14% • PCR-Impact – 6 actions

7. Transitional Challenges Learning Curve Volume, rhythm and timing Tracking system Subcontracting plans . . . And especially market research

8. FAR Part 7 – Market Research Requirements FAR 7.102. Requires market research for all acquisitions; promotes and provides for acquisition of commercial items/services and full and open competition FAR 7.105. Requires Acquisition Plans to address extent, results, and impact of market research FAR 7.107. Requires market research to determine necessity and justification for bundling (“measurably substantial benefits”)

9. WHAT is Market Research? The continuous process of collecting and analyzing information about capabilities within the market to satisfy agency needs and make acquisition decisions. Includes Strategic and TacticalResearch

10. Who Does Market Research??? Technical Team Cost/Price Analyst Finance Legal Counsel The Acquisition Team Program Manager Contracting Officer DCAA/ DCMA Customer SBS/PCR

11. Strategic – the “Long Term View” • Helps develop general knowledge and understanding of the government marketplace relevant to your business lines • Is iterative, on-going, and not aimed at any specific procurement action. • Builds the knowledge base that becomes the foundation for more focused tactical research.

12. Strategic Methods • Reviewing trade journals and articles • Newspaper articles – business pages • Trade association conferences • Electronic forums & webinars A veritable cross-section of information

13. Tactical Market Research • For the “instant” requirement • Begins early in the acquisition process • Is used to identify potential prime contractors, sources of supplies & materials • Assists in acquisition decision-making

14. Tactical Methods • Sources Sought Synopses • Requests for Information • SBA’s Dynamic Small Business Search • Draft Solicitations for Comment • Surveys of the Marketplace • Face-to-face contact with vendors

15. WHEN to do Market Research Required on every acquisition, as appropriate – • Before developing NEW requirements documents (Statements of Work, Statements of Objectives, Purchase Descriptions) • Before soliciting offers/bids exceeding the SAT ($150k) • Beforesoliciting offers/bids under the SAT if adequate information is not available and circumstances justify. • Before soliciting for an acquisition that could lead to a bundled or consolidated contract.

16. Bundling Reminder • If Bundling is considered, the SBA PCR should be consulted 30 days prior to the acquisition strategy being finalized. • At least 30 days before the release of the solicitation, any incumbent contractor(s) must be notified that the government intends to bundle the requirement.

17. WHERE to Conduct Market Research • Internet – search engines, company web sites, trade groups forums, ebiz newsletters, government sites (FBO, FPDS), on-line bulletin boards. • Print media – Business Times, newspapers, trade journals, catalogs & line cards received from contractors & suppliers, business cards, yellow pages, source lists. • SBA – Dynamic Small Business Search, PCRs, BOS’, etc.

18. WHERE to Conduct Market Research • Verbal – phone conversations with industry and/or Small Business Specialists at Federal agencies; conversations with small business development center representatives, etc. • Networking – trade fairs & expos, networking luncheons, professional organizations, pre-bid/solicitation meetings.

19. WHERE to Conduct Market Research • Procurement Technical Assistance Centers (PTAC) and Small Business Development Centers (SBDC) set up by SBA and DOD to help small businesses. • Other –civilian business associations for assorted socioeconomic groups who sponsor outreaches for their member businesses. Select a healthy mix of targets to include dependent on the acquisition.

20. How Often • Tactical Market Research is generally considered “current” if accomplished within 12 months • For Strategic Market Research, 12 months may be too long! Industry and information technology drives a fast-paced environment!

21. HOW to do Market Research • Start with a subject or description. What targeted information are you looking for? • Decide how complex the research needs to be based on URGENCY, TECHNOLOGY, AVAILABILITY, COMPLEXITY. • NOTE: When Agencies conduct MR thru a sources-sought announcement, they must not request more information from potential sources than is necessary to gather the data needed to make acquisition decisions.

22. WHAT to do with Market Research Once completed, market research results must be analyzed. Source lists compiled from the research results are compared directly to the online information for each vendor that asserts that their capabilities are compatible with the government’s needs. A narrative is required that addresses the market research process, each firm’s capability and capacity to perform – or not, and the reason for the ultimate decision.

23. Rule of Two Reminder FAR 19.502-2(b) b) The contracting officer shall set aside any acquisition over $150,000 for small business participation when there is a reasonable expectation that: (1) offers will be obtained from at least two responsible small business concerns…. and (2) award will be made at fair market prices.

24. Initial Market Considerations • What is the history of this acquisition? What did you do last time? • Is there existing market research within your agency? • Is there existing market research outside of your agency? • Have you issued a sources sought? • Have you reviewed the Dynamic Small Business Search? • Have you been in touch with the small business community? The SBA?

25. Think Small Business • Keep an open mind • Use market research to craft a strategy, not to validate a pre-existing thought • As possible, provide a positive assessment of small business capacity and capability.

26. Acquisition Sequence SBA Concurrence Requirement Acquisition Strategy & 653 Solicitation Preparation Market Research Pre-Solicitation notice issued in FedBizOpps Release to Industry Issue Solicitation

27. Market Research Documentation • Procurement Identifying Number • Title of Procurement • North American Industry Classification System (NAICS) Code: http://www.census.gov/naics • Total Estimated Value • New or follow-on requirement? • If a follow-on, what is the status of the incumbent contractor (large business, small business, 8(a), etc.)?

28. Market Research Documentation • Is a bundled contract anticipated? [If so, comply with FAR 7.107, FAR 10.001(c) and 19.202-1(e)] • Small Business Set-Aside? • Points of Contact • Description of Requirement • Description of Market Research actually accomplished (who, when and how). • Describe the results of the Market Research conducted.

29. Market Research Documentation Describe, to the extent applicable for this procurement action: • Whether sources capable of satisfying the agency’s requirements exist, and if not, what they are lacking, • The extent commercial items are available and could be incorporated, • The contract type, warranty terms, financing, maintenance, packaging and marking, • The maximum practicable use of recovered materials, • The availability of electronic and information technology as required by 36 CFR 1194.

30. Market Research Documentation If this procurement action contemplates the use of a multiple award schedule contract, be advised that under the Small Business Jobs Act of 2011, agencies may: • Set aside part or parts of a multiple award contract for small business; • Set aside orders placed against multiple award contracts for small businesses; and • Reserve one or more contract award(s) for small businesses under full and open competition multiple award procurements

31. Parity Among SB Programs

32. Finding 8(a) and HZ Firms Central Contractor Registration (CCR) Dynamic Small Business Search (DSBS) Input into the 8(a) and HUBZone sections can ONLY be accomplished by SBA Central Office upon formal SBA certification. DO NOT RELY ON SAM FOR THIS INFORMATION…check under “DSBS”

33. Summary Key to acquisition success . . • Start market research early and invite team members to assist • Research all solicitations over $100K • Document the research process • Send research with Form 653 and other acquisition documentation • Describe government needs in sufficient detail when doing market research

34. Finally . . . Understanding small business programs and market research is essential to successful acquisition planning and the outcome of the solicitation/contract award processes. It is our responsibility to conduct and document market research as stewards of taxpayer dollars and advocates for SMALL BUSINESS.

35. U. S. Small Business Administration barbara.weaver@sba.gov Rev. 2-2013