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FEDERAL ACQUISITION CIRCULAR April 15, 2011 Number 2005-50 Effective April 15, 2011 Looseleaf pages Federal Acquisition Circular (FAC) 2005-50 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration. Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-50 are effective March 16, 2011, except for Item IV, which is effective April 15, 2011, and Item II, which is effective May 16, 2011. (BLANK PAGE) FAC 2005-50 FILING INSTRUCTIONS NOTE: The following pages reflect FAR final rule amendments. Please do not file these pages until their effective date of April 15, 2011. Remove Pages Insert Pages Part 10 TOC Part 10 TOC pp. 10-1 and 10-2 pp. 10-1 and 10-2 10.0-1 and 10.0-2 10.0-1 and 10.0-2 16.5-5 and 16.5-6 16.5-5 and 16.5-6 44.4-1 and 44.4-2 44.4-1 and 44.4-2 Part 52 TOC Part 52 TOC pp. 52-1 and 52-2 pp. 52-1 and 52-2 52.2-20.1 thru 52.2-26 52.2-20.1 thru 52.2-26 52.2-263 thru 52.2-266 52.2-263 thru 52.2-266 Matrix Matrix pp. 52.3-5 and 52.3-6 pp. 52.3-5 and 52.3-6 pp. 52.3-27 and 52.3-28 pp. 52.3-27 and 52.3-28 (BLANK PAGE) FAC 2005–50 APRIL 15, 2011 PART 10—MARKET RESEARCH Sec. 10.000 Scope of part. 10.002 Procedures. 10.001 Policy. 10.003 Contract clause. 10-1 This page intentionally left blank. 10-2 FAC 2005–50 APRIL 15, 2011 PART 10—MARKET RESEARCH 10.002 10.000 Scope of part. (iii) Determine the extent to which commercial items This part prescribes policies and procedures for conducting or nondevelopmental items could be incorporated at the com- market research to arrive at the most suitable approach to ponent level; acquiring, distributing, and supporting supplies and services. (iv) Determine the practices of firms engaged in pro- This part implements the requirements of 41 U.S.C. ducing, distributing, and supporting commercial items, such 253a(a)(1), 41 U.S.C. 264b, 10 U.S.C. 2377, and 6 U.S.C. as type of contract, terms for warranties, buyer financing, 796. maintenance and packaging, and marking; (v) Ensure maximum practicable use of recovered 10.001 Policy. materials (see Subpart 23.4) and promote energy conservation (a) Agencies must— and efficiency; and (1) Ensure that legitimate needs are identified and trade- (vi) Determine whether bundling is necessary and offs evaluated to acquire items that meet those needs; justified (see 7.107) (15 U.S.C. 644(e)(2)(A)). (2) Conduct market research appropriate to the (vii) Assess the availability of electronic and infor- circumstances— mation technology that meets all or part of the applicable (i) Before developing new requirements documents accessibility standards issued by the Architectural and Trans- for an acquisition by that agency; portation Barriers Compliance Board at 36 CFR Part 1194 (ii) Before soliciting offers for acquisitions with an (see Subpart 39.2). estimated value in excess of the simplified acquisition (b) When conducting market research, agencies should not threshold; request potential sources to submit more than the minimum information necessary. (iii) Before soliciting offers for acquisitions with an (c) If an agency contemplates awarding a bundled contract, estimated value less than the simplified acquisition threshold the agency— when adequate information is not available and the circum- stances justify its cost; (1) When performing market research, should consult with the local Small Business Administration procurement (iv) Before soliciting offers for acquisitions that center representative (PCR). If a PCR is not assigned, see could lead to a bundled contract (15 U.S.C. 644(e)(2)(A)); 19.402(a); and (v) Before awarding a task or delivery order under an (2) At least 30 days before release of the solicitation or indefinite-delivery/indefinite-quantity (ID/IQ) contract (e.g., 30 days prior to placing an order without a solicitation— GWACs, MACs) for a noncommercial item in excess of the (i) Must notify any affected incumbent small busi- simplified acquisition threshold (10 U.S.C. 2377(c)); and ness concerns of the Government’s intention to bundle the (vi) On an ongoing basis, take advantage (to the max- requirement; and imum extent practicable) of commercially available market (ii) Should notify any affected incumbent small busi- research methods in order to effectively identify the capabil- ness concerns of how the concerns may contact the appropri- ities of small businesses and new entrants into Federal con- ate Small Business Administration representative. tracting that are available in the marketplace for meeting the (d) See 10.003 for the requirement for a prime contractor requirements of the agency in furtherance of— to perform market research in contracts in excess of $5 million (A) A contingency operation or defense against or for the procurement of items other than commercial items in recovery from nuclear, biological, chemical, or radiological accordance with section 826 of Public Law 110-181. attack; and (B) Disaster relief to include debris removal, dis- 10.002 Procedures. tribution of supplies, reconstruction, and other disaster or (a) Acquisitions begin with a description of the Govern- emergency relief activities. (See 26.205). ment’s needs stated in terms sufficient to allow conduct of (3) Use the results of market research to— market research. (i) Determine if sources capable of satisfying the (b) Market research is then conducted to determine if com- agency’s requirements exist; mercial items or nondevelopmental items are available to (ii) Determine if commercial items or, to the extent meet the Government’s needs or could be modified to meet the commercial items suitable to meet the agency’s needs are not Government’s needs. available, nondevelopmental items are available that— (1) The extent of market research will vary, depending (A) Meet the agency’s requirements; on such factors as urgency, estimated dollar value, complex- (B) Could be modified to meet the agency’s ity, and past experience. The contracting officer may use mar- requirements; or ket research conducted within 18 months before the award of (C) Could meet the agency’s requirements if any task or delivery order if the information is still current, those requirements were modified to a reasonable extent; accurate, and relevant. Market research involves obtaining 10.0-1 FAC 2005–50 APRIL 15, 2011 10.003 FEDERAL ACQUISITION REGULATION information specific to the item being acquired and should databases that provide information relevant to agency acqui- include— sitions. (i) Whether the Government’s needs can be met by— (v) Participating in interactive, on-line communica- (A) Items of a type customarily available in the tion among industry, acquisition personnel, and customers. commercial marketplace; (vi) Obtaining source lists of similar items from (B) Items of a type customarily available in the other contracting activities or agencies, trade associations or commercial marketplace with modifications; or other sources. (C) Items used exclusively for governmental (vii) Reviewing catalogs and other generally avail- purposes; able product literature published by manufacturers, distribu- (ii) Customary practices regarding customizing, tors, and dealers or available on-line. modifying or tailoring of items to meet customer needs and (viii) Conducting interchange meetings or holding associated costs; presolicitation conferences to involve potential offerors early (iii) Customary practices, including warranty, buyer in the acquisition process. financing, discounts, contract type considering the nature and (c) If market research indicates commercial or nondevel- risk associated with the requirement, etc., under which com- opmental items might not be available to satisfy agency needs, mercial sales of the products or services are made; agencies shall reevaluate the need in accordance with 10.001(a)(3)(ii) and determine whether the need can be (iv) The requirements of any laws and regulations restated to permit commercial or nondevelopmental items to unique to the item being acquired; satisfy the agency’s needs. (v) The availability of items that contain recovered (d)(1) If market research establishes that the Government’s materials and items that are energy efficient; need may be met by a type of item or service customarily (vi) The distribution and support capabilities of available in the commercial marketplace that would meet the potential suppliers, including alternative arrangements and definition of a commercial item at Subpart 2.1, the contracting cost estimates; and officer shall solicit and award any resultant contract using the (vii) Size and status of potential sources (see policies and procedures in Part 12. Part 19). (2) If market research establishes that the Government’s (2) Techniques for conducting market research may need cannot be met by a type of item or service customarily include any or all of the following: available in the marketplace, Part 12 shall not be used. When (i) Contacting knowledgeable individuals in Gov- publication of the notice at 5.201 is required, the contracting ernment and industry regarding market capabilities to meet officer shall include a notice to prospective offerors that the requirements. Government does not intend to use Part 12 for the acquisition. (ii) Reviewing the results of recent market research (e) Agencies should document the results of market undertaken to meet similar or identical requirements. research in a manner appropriate to the size and complexity of (iii) Publishing formal requests for information in the acquisition. appropriate technical or scientific journals or business publications. 10.003 Contract clause.