FAR 10.002—Procedures.
Plain-English Summary
FAR 10.002 explains the required procedure for using market research in federal acquisitions and how that research drives the rest of the buying strategy. It covers the starting point for an acquisition, the need to describe the Government’s needs in a way that supports market research, the scope and timing of market research, the specific information that research should gather, and the techniques agencies may use to collect it. It also addresses what agencies must do if market research suggests commercial products, commercial services, or nondevelopmental items may not meet the need, including reevaluating and possibly restating the requirement. Finally, it tells contracting officers when to use FAR part 12 for commercial acquisitions, when not to use part 12, when to notify offerors that part 12 will not be used, and requires agency heads to document the results of market research. In practice, this section is the bridge between defining a requirement and choosing the correct acquisition approach, and it is central to deciding whether the Government should buy commercially, modify the requirement, or pursue a noncommercial solution.
Key Rules
Start with a usable need
Acquisitions must begin with a description of the Government’s needs that is specific enough to support market research. If the requirement is too vague, the agency cannot properly determine what is available in the marketplace.
Conduct market research first
The agency must research whether commercial products, commercial services, or nondevelopmental items can meet the need, or could meet it with modification. The depth of research depends on urgency, dollar value, complexity, and prior experience.
Use current prior research when allowed
A contracting officer may rely on market research performed within the prior 18 months for a task or delivery order if the information remains current, accurate, and relevant. This allows reuse of good research, but only when the facts still support the acquisition decision.
Research must cover key market factors
Market research should address commercial availability, customization practices and costs, commercial sales practices such as warranties and financing, unique legal or regulatory requirements, recovered materials and energy efficiency, supplier distribution and support, and small business capability and pricing.
Use a broad set of research techniques
The rule lists many acceptable methods, including talking with knowledgeable sources, reviewing prior research, issuing RFIs, searching contract databases, using online industry communication, obtaining source lists, reviewing catalogs, holding interchange meetings or presolicitation conferences, and checking SAM, FPDS, and DSBS.
Reevaluate if commercial solutions seem unavailable
If research suggests commercial products, commercial services, or nondevelopmental items may not satisfy the need, the agency must reevaluate the requirement under FAR 10.001 and consider whether the need can be restated so a commercial solution will work.
Use FAR part 12 when the need is commercial
If market research shows the requirement may be met by a type of item or service customarily available in the commercial marketplace and it fits the FAR 2.1 definition of commercial, the contracting officer must use FAR part 12 policies and procedures for solicitation and award.
Do not use FAR part 12 when the need is noncommercial
If market research shows the need cannot be met by a type of item or service customarily available in the marketplace, FAR part 12 must not be used. If a synopsis under FAR 5.201 is required, the notice must tell offerors that the Government does not intend to use part 12.
Document the market research
The head of the agency must document the results of market research in a way that fits the size and complexity of the acquisition. The documentation should support the acquisition strategy and the decision to use or not use commercial procedures.
Responsibilities
Contracting Officer
Conduct or obtain market research, decide whether prior research is still current and relevant, determine whether the requirement should be acquired under FAR part 12, and include the required notice when part 12 will not be used and a synopsis is required.
Agency
Describe the Government’s needs in a way that permits market research, conduct market research when planning acquisitions, reevaluate needs if commercial solutions appear unavailable, and ensure the acquisition approach reflects the market findings.
Head of the Agency
Document the results of market research in a manner appropriate to the size and complexity of the acquisition.
Acquisition Team / Program Office
Help define the requirement, identify technical and performance needs, participate in market research, and provide information on commercial practices, support needs, and possible requirement restatement.
Potential Suppliers / Industry
Provide information through RFIs, interchange meetings, catalogs, databases, and other market engagement methods that help the Government understand available commercial solutions and customary practices.
Practical Implications
This section is often the deciding factor in whether an acquisition is treated as commercial or noncommercial, so the quality of the market research can shape the entire procurement.
A common pitfall is writing a requirement too narrowly or too early, which can hide commercial alternatives and force an unnecessary noncommercial approach.
Another frequent mistake is relying on stale market research without confirming it is still current, accurate, and relevant, especially for task and delivery orders.
Contracting officers should make sure the research addresses small business capability, supportability, customization costs, and commercial terms, not just whether a product exists.
Documentation matters: if the file does not show what was researched, what was found, and why the acquisition strategy follows from those findings, the agency may have trouble defending the decision later.
Official Regulatory Text
(a) Acquisitions begin with a description of the Government’s needs stated in terms sufficient to allow conduct of market research. (b) Market research is then conducted to determine if commercial products, commercial services, or nondevelopmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. (1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant. Market research involves obtaining information specific to the product or service being acquired and should include- (i) Whether the Government’s needs can be met by- (A) Products or services of a type customarily available in the commercial marketplace; (B) Products or services of a type customarily available in the commercial marketplace with modifications; or (C) Products or services used exclusively for governmental purposes; (ii) Customary practices regarding customizing, modifying or tailoring of products or services to meet customer needs and associated costs; (iii) Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made; (iv) The requirements of any laws and regulations unique to the item being acquired; (v) The availability of items that contain recovered materials and items that are energy efficient; (vi) The distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and (vii) Whether the Government's needs can be met by small business concerns that will likely submit a competitive offer at fair market prices (see part 19 ). (2) Techniques for conducting market research may include any or all of the following: (i) Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements. (ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements. (iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications. (iv) Querying the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other Government and commercial databases that provide information relevant to agency acquisitions. (v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers. (vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources. (vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line. (viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process. (ix) Reviewing systems such as the System for Award Management, the Federal Procurement Data System, and the Small Business Administration's Dynamic Small Business Search. (c) If market research indicates commercial products, commercial services, or nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with 10.001 (a)(3)(ii) and determine whether the need can be restated to permit commercial products, commercial services, or nondevelopmental items to satisfy the agency’s needs. (d) (1) If market research establishes that the Government’s need may be met by a type of product or service customarily available in the commercial marketplace that would meet the definition of a commercial product or commercial service at subpart 2.1 , the contracting officer shall solicit and award any resultant contract using the policies and procedures in part 12 . (2) If market research establishes that the Government’s need cannot be met by a type of item or service customarily available in the marketplace, part 12 shall not be used. When publication of the notice at 5.201 is required, the contracting officer shall include a notice to prospective offerors that the Government does not intend to use part 12 for the acquisition. (e) The head of the agency shall document the results of market research in a manner appropriate to the size and complexity of the acquisition.