FAR 10—Market Research

Scope of part.

FAR 10.000 states the scope of FAR part 10, which is the government’s market research part. It explains that this part sets the policies and procedures agencies use to conduct market research before buying supplies or services, so the acquisition strategy chosen is the most suitable one for the requirement. In practical terms, this part is about understanding the marketplace early enough to decide how to acquire, distribute, and support the needed supplies and services in a way that fits the government’s needs, available commercial capabilities, and acquisition constraints. The section also identifies the statutory authorities the part implements: 41 U.S.C. 3306(a)(1), 41 U.S.C. 3307, 10 U.S.C. 3453, and 6 U.S.C. 796. Those citations show that market research is not optional background work; it is a required foundation for sound acquisition planning and for selecting an appropriate procurement approach.

Policy.

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.

Procedures.

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.

Contract clause.

FAR 10.003 is a narrow but important solicitation-and-contract clause prescription that tells contracting officers when they must include the Market Research clause at FAR 52.210-1. It covers three core topics: the dollar threshold that triggers the clause, the types of acquisitions to which it applies, and the explicit exception for commercial products and commercial services. In practice, this section is about documenting and reinforcing the Government’s market research responsibilities in larger noncommercial acquisitions, so offerors and contractors understand that market research is part of the acquisition process and may affect how requirements are shaped. It matters because failure to include a required clause can create solicitation defects, contract administration issues, or questions about whether the acquisition file properly supports the procurement strategy. For contractors, it signals that the Government may seek information about market conditions, sources, capabilities, and pricing as part of the acquisition. For contracting officers, it is a simple but mandatory clause-insertion rule that must be checked whenever the acquisition exceeds the stated threshold and is not for commercial products or services.