FAR 11.103—Market acceptance.
Plain-English Summary
FAR 11.103 explains when and how an agency may require offerors to prove that an offered item has already been accepted in the marketplace or has been satisfactorily supplied to the Government before award. It covers the statutory authority in 41 U.S.C. 3307(e), the kinds of situations where market acceptance is appropriate, and when it is not appropriate—especially where new or evolving items could satisfy the need. The section also sets out how contracting officers must develop solicitation criteria for demonstrating commercial market acceptance, including the need to tie the criteria to the agency’s minimum need, focus on performance and intended use rather than the offeror’s general capability, and support the criteria with market research. It further requires consideration of prior satisfactory Government supply, the full relevant commercial market including small businesses, and prohibits using market acceptance as the sole evaluation criterion. In practice, this section is meant to help agencies reduce performance risk for certain acquisitions while preventing overly restrictive requirements that could exclude innovative solutions or unduly limit competition.
Key Rules
Authority to Require Acceptance
The head of an agency may, under agency procedures and appropriate circumstances, require offerors to show that offered items have achieved commercial market acceptance or have been satisfactorily supplied under current or recent Government contracts for the same or similar requirements. The item must also otherwise meet the solicitation’s description, specifications, or other stated criteria.
Use Only in Appropriate Cases
Market acceptance is intended for situations where the agency needs an item with a demonstrated reliability, performance, or product support record in a particular environment. It is inappropriate when new or evolving items may still meet the agency’s needs, because the requirement should not unnecessarily block innovative or emerging solutions.
Criteria Must Match Minimum Need
Any solicitation criteria for proving market acceptance must reflect the agency’s minimum need and be reasonably related to showing the item is acceptable for that need. The criteria should be designed to measure whether the item itself will perform as required, not whether the offeror is generally capable or experienced.
Market Research Is Required
The contracting officer must support the criteria with market research and consider items that have been satisfactorily supplied under recent or current Government contracts for the same or similar items. The analysis must also account for the entire relevant commercial market, including small business concerns.
Not a Standalone Evaluation Test
Commercial market acceptance cannot be used as the sole criterion for deciding whether an item meets Government requirements. It may be one factor, but the agency must still evaluate the item against the full set of applicable requirements in the solicitation.
File Documentation Required
When market acceptance is used, the contracting officer must document the contract file to explain why the approach is justified and to support the specific criteria chosen. This documentation is important for showing that the requirement was reasonable, market-based, and tied to the agency’s actual need.
Responsibilities
Head of Agency
May authorize the use of market acceptance requirements under agency procedures and only in appropriate circumstances.
Contracting Officer
Must develop solicitation criteria that are tied to the agency’s minimum need, supported by market research, focused on item performance and intended use, and inclusive of the relevant commercial market. The contracting officer must also document the file explaining the justification for using market acceptance and the basis for the specific criteria.
Offeror
Must demonstrate that the offered item has achieved commercial market acceptance or has been satisfactorily supplied under current or recent Government contracts, and must also show that the item otherwise meets the solicitation’s stated requirements.
Agency
Must follow its internal procedures for using market acceptance and ensure the requirement is applied only where it is appropriate and consistent with the agency’s minimum needs and competition objectives.
Practical Implications
This section is most useful when the Government needs proven performance in a specific environment, such as a mission-critical item where reliability and support history matter more than novelty.
A common pitfall is writing criteria that effectively measure the vendor’s past business success instead of the item’s actual performance or suitability; FAR 11.103 requires item-focused criteria.
Another risk is using market acceptance to exclude innovative or newer products without a solid reason. If the agency’s need can be met by evolving technology, this approach may be improper.
Contracting officers should make sure market research is current and broad enough to capture the full market, including small businesses and prior Government supply history.
Because market acceptance cannot be the only evaluation factor, solicitations should still include other meaningful technical or performance requirements and a clear basis for award.
Official Regulatory Text
(a) 41 U.S.C. 3307(e) provides that, in accordance with agency procedures, the head of an agency may, under appropriate circumstances, require offerors to demonstrate that the items offered- (1) Have either- (i) Achieved commercial market acceptance; or (ii) Been satisfactorily supplied to an agency under current or recent contracts for the same or similar requirements; and (2) Otherwise meet the item description, specifications, or other criteria prescribed in the public notice and solicitation. (b) Appropriate circumstances may, for example, include situations where the agency’s minimum need is for an item that has a demonstrated reliability, performance or product support record in a specified environment. Use of market acceptance is inappropriate when new or evolving items may meet the agency’s needs. (c) In developing criteria for demonstrating that an item has achieved commercial market acceptance, the contracting officer shall ensure the criteria in the solicitation- (1) Reflect the minimum need of the agency and are reasonably related to the demonstration of an item’s acceptability to meet the agency’s minimum need; (2) Relate to an item’s performance and intended use, not an offeror’s capability; (3) Are supported by market research; (4) Include consideration of items supplied satisfactorily under recent or current Government contracts, for the same or similar items; and (5) Consider the entire relevant commercial market, including small business concerns. (d) Commercial market acceptance shall not be used as a sole criterion to evaluate whether an item meets the Government’s requirements. (e) When commercial market acceptance is used, the contracting officer shall document the file to- (1) Describe the circumstances justifying the use of commercial market acceptance criteria; and (2) Support the specific criteria being used.