FAR Part 10: Market Research

In plain English

FAR Part 10 prescribes policies and procedures for conducting market research to determine the most suitable approach for acquiring supplies and services. It requires agencies to conduct market research before developing requirements or soliciting offers, and to use the results to identify capable sources, including small businesses. For contractors, this means the government may reach out to industry for information, and in large contracts, prime contractors must also perform market research.

Key rules

• Agencies must conduct market research appropriate to the circumstances before developing new requirements documents and before soliciting offers for acquisitions above the simplified acquisition threshold.
• Market research must also be conducted before soliciting offers for acquisitions below the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost.
• Agencies must use market research results to determine if capable sources exist, if commercial or nondevelopmental items are available, and whether small business programs should be used.
• When conducting market research, agencies should not request potential sources to submit more than the minimum information necessary.
• If an agency contemplates consolidation or bundling, it should consult with the small business specialist and the SBA procurement center representative, and must notify affected incumbent small businesses.
• The extent of market research varies based on urgency, estimated dollar value, complexity, and past experience; market research may be reused if conducted within 18 months before award and still current, accurate, and relevant.
• If market research shows the need can be met by a commercial product or service, the contracting officer must use part 12 procedures; if not, part 12 must not be used and a notice must be included when publication is required.
• The contracting officer must insert the clause at 52.210-1, Market Research, in solicitations and contracts over $7.5 million, other than for commercial products or commercial services. (10.003)

Who does what

In practice

• When you bid, the government may have already conducted market research to decide whether to use commercial procedures or small business programs, which can affect the solicitation terms.
• If you are a prime contractor on a contract over $7.5 million (non-commercial), you must perform market research, which may require you to gather information on market capabilities.
• The government may contact you for market research, but it should not ask for more than the minimum information necessary, so you can keep your responses concise.
• If the acquisition involves consolidation or bundling, incumbent small businesses must be notified, giving them a chance to respond.

Common pitfalls

• Do not assume that market research is only the government's responsibility; if you are a prime contractor on a large non-commercial contract, you must also perform it.
• Do not provide excessive information when the government requests market research; the regulation says agencies should not request more than the minimum necessary.
• Do not ignore the 18-month rule: market research older than 18 months before award may not be used unless it is still current, accurate, and relevant.
• Do not overlook that if market research shows the need can be met commercially, the contracting officer must use part 12 procedures, which may affect the terms and conditions of the solicitation.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.