FAR 10.001—Policy.
Plain-English Summary
FAR 10.001 sets the core policy for agency market research in federal acquisitions. It requires agencies to identify legitimate needs, evaluate trade-offs, and use market research before developing new requirements documents, before soliciting offers above the simplified acquisition threshold, and in certain lower-value procurements when information is lacking and the research is worth the cost. It also requires market research before solicitations that could result in consolidation or bundling, before certain task or delivery orders under ID/IQ contracts for noncommercial items above the simplified acquisition threshold, and on an ongoing basis to identify small businesses and new entrants for contingency, cyber defense, and disaster relief needs. The section explains how agencies must use market research results to determine whether capable sources exist, whether commercial products, commercial services, or nondevelopmental items can meet or be adapted to meet the need, whether component-level commercial solutions are available, what commercial business practices are typical, whether sustainable products and services should be used, whether consolidation or bundling is justified, whether small business programs should be used, and whether ICT accessibility standards can be met. It also limits how much information agencies should ask potential sources to provide, requires consultation and notice when consolidation or bundling is contemplated, and points to the separate prime contractor market research requirement in FAR 10.003 for certain large noncommercial contracts. In practice, this section is the foundation for acquisition planning: it drives better requirements, supports competition, helps avoid over-specification, strengthens small business participation, and reduces the risk of buying the wrong thing or structuring the acquisition in a way that is not justified.
Key Rules
Identify real needs first
Agencies must ensure the requirement reflects a legitimate need and that trade-offs are evaluated so the acquisition buys items that actually satisfy that need. This is the starting point for sound acquisition planning and helps prevent unnecessary or overdesigned requirements.
Conduct timely market research
Market research is required before developing new requirements documents, before solicitations above the simplified acquisition threshold, and in certain lower-dollar buys when adequate information is unavailable and the research is justified by its cost. It is also required before certain ID/IQ task or delivery orders for noncommercial items above the simplified acquisition threshold.
Use ongoing research for special needs
For contingency operations, cyber/nuclear/biological/chemical/radiological defense or recovery, and disaster relief, agencies should continuously use commercially available market research methods to identify small businesses and new entrants. The goal is to broaden the supplier base in urgent and mission-critical environments.
Use research to shape the acquisition
Agencies must use market research results to determine whether capable sources exist, whether commercial products or services or nondevelopmental items can meet or be adapted to meet the need, whether component-level commercial solutions are available, and what commercial practices are typical. Research must also inform sustainability, consolidation, bundling, small business program use, and ICT accessibility.
Minimize burdens on industry
When conducting market research, agencies should request only the minimum information necessary from potential sources. This limits unnecessary burden on vendors and helps keep market research efficient and focused.
Follow special steps for consolidation or bundling
If consolidation or bundling is contemplated, the agency should consult the small business specialist and the SBA PCR during market research. The agency must also notify affected incumbent small business concerns of the intent to bundle and explain how they can contact the PCR.
Coordinate with related requirements
FAR 10.001 points to FAR 10.003 for a separate prime contractor market research requirement on contracts over $7.5 million, other than commercial product or commercial service contracts. Agencies should treat these as related but distinct obligations.
Responsibilities
Agency
Identify legitimate needs, evaluate trade-offs, and conduct appropriate market research at the required points in the acquisition process. Use the results to decide whether sources exist, whether commercial or nondevelopmental solutions are available, whether sustainability and accessibility requirements can be met, and whether consolidation, bundling, or small business programs are justified.
Contracting Officer
Ensure the acquisition file reflects required market research and that the research is timely, proportionate, and used in planning and solicitation decisions. The contracting officer must also ensure special steps are taken when consolidation or bundling is contemplated and that the acquisition strategy reflects the research findings.
Agency Small Business Specialist
Advise the agency during market research when consolidation or bundling is being considered and help assess small business participation opportunities. The specialist supports decisions about whether small business programs should be used.
SBA Procurement Center Representative (PCR)
Be consulted when consolidation or bundling is contemplated, or when required by the small business coordination process. The PCR helps evaluate impacts on small business participation and serves as a point of contact for affected firms.
Affected Incumbent Small Business Concerns
Be notified when the agency contemplates bundling and be informed how to contact the appropriate SBA PCR. While they do not have a duty to the Government under this section, they are entitled to this notice.
Potential Sources / Industry
Respond only to the minimum information requests necessary for market research. Vendors may provide information about capabilities, commercial practices, and available solutions, but agencies should not impose excessive research burdens.
Prime Contractor
Under the separate FAR 10.003 requirement referenced by this section, perform market research for certain contracts in excess of $7.5 million that are not for commercial products or commercial services.
Practical Implications
This section is one of the main drivers of acquisition planning quality. If market research is weak or missing, the agency may write an unrealistic requirement, miss commercial solutions, or fail to justify bundling or consolidation.
Contractors should expect agencies to ask targeted questions about capabilities, commercial practices, and small business status, but not to demand excessive proposal-like detail during market research.
A common pitfall is treating market research as a one-time paperwork step instead of an input to the whole acquisition strategy. The research should inform requirements, set-aside decisions, and the decision to buy commercial or nondevelopmental items.
Another frequent issue is failing to document why consolidation or bundling is necessary and justified, or failing to consult the small business specialist and SBA PCR early enough.
Agencies should also watch for accessibility and sustainability issues early, because those requirements can affect product selection, competition, and contract structure before the solicitation is issued.
Official Regulatory Text
(a) Agencies shall— (1) Ensure that legitimate needs are identified and trade-offs evaluated to acquire items that meet those needs; (2) Conduct market research appropriate to the circumstances– (i) Before developing new requirements documents for an acquisition by that agency; (ii) Before soliciting offers for acquisitions with an estimated value in excess of the simplified acquisition threshold; (iii) Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost; (iv) Before soliciting offers for acquisitions that could lead to consolidation or bundling ( 15 U.S.C. 644(e)(2)(A) ) and 15 U.S.C. 657q ); (v) Before awarding a task or delivery order under an indefinite-delivery/indefinite-quantity (ID/IQ) contract ( e.g. , GWACs, MACs) for other than a commercial product or commercial service in excess of the simplified acquisition threshold ( 10 U.S.C. 3453(c) ); and (vi) On an ongoing basis, take advantage (to the maximum extent practicable) of commercially available market research methods in order to effectively identify the capabilities of small businesses and new entrants into Federal contracting that are available in the marketplace for meeting the requirements of the agency in furtherance of- (A) A contingency operation or defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; and (B) Disaster relief to include debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief activities (See 26.205 ); and (3) Use the results of market research to– (i) Determine if sources capable of satisfying the agency’s requirements exist; (ii) Determine if commercial products or commercial services, or, to the extent commercial products suitable to meet the agency’s needs are not available, nondevelopmental items are available that- (A) Meet the agency’s requirements; (B) Could be modified to meet the agency’s requirements; or (C) Could meet the agency’s requirements if those requirements were modified to a reasonable extent; (iii) Determine the extent to which commercial products, or nondevelopmental items could be incorporated at the component level; (iv) Determine the practices of firms engaged in producing, distributing, and supporting commercial products or commercial services, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking; (v) Ensure maximum practicable use of sustainable products and services (as defined in 2.101 ) in accordance with subpart 23.1 ; (vi) Determine whether consolidation is necessary and justified (see 7.107-2 ) ( 15 U.S.C. 657q ); (vii) Determine whether bundling is necessary and justified (see 7.107-3 ) ( 15 U.S.C. 644(e)(2)(A) ); (viii) Determine whether the acquisition should utilize any of the small business programs in accordance with part 19 ; and (ix) Assess the availability of supplies or services that meet all or part of the applicable information and communication technology accessibility standards at 36 CFR 1194.1 (see subpart 39.2 ). (b) When conducting market research, agencies should not request potential sources to submit more than the minimum information necessary. (c) If an agency contemplates consolidation or bundling, the agency— (1) When performing market research, should consult with the agency small business specialist and the local Small Business Administration procurement center representative (PCR). If a PCR is not assigned, see 19.402 (a); and (2) Shall notify any affected incumbent small business concerns of the Government's intention to bundle the requirement and how small business concerns may contact the appropriate Small Business Administration procurement center representative (see 7.107-5 (a)). (d) See 10.003 for the requirement for a prime contractor to perform market research in contracts in excess of $7.5 million, other than contracts for the acquisition of commercial products or commercial services (section 826 of Pub. L. 110-181).