When must agencies conduct Market Research?

Market research is a critical step in the procurement process, especially when agencies are planning to develop new requirements and intend to solicit offers above the Simplified Acquisition Threshold (SAT). Conducting market research allows agencies to gather necessary information about the capabilities of potential vendors, existing products or services in the marketplace, and pricing trends. This information is essential to ensure that the agency is making informed decisions that meet their needs and comply with regulations.

Before soliciting offers above the SAT, agencies must ensure they understand the market dynamics and can clearly define their requirements based on what is available. This practice not only enhances competition but also promotes better value for taxpayer dollars by ensuring that the procurement process is fair and that agencies are aware of all available options and innovative solutions that may exist in the market.

Conducting market research at this stage is part of good contracting discipline and aligns with federal regulations that encourage agencies to take proactive steps to gather insights before initiating procurement actions. This helps avoid potential pitfalls such as over-specifying requirements or missing out on competitive pricing.