DFARS Part 210: Market Research

In plain English

DFARS Part 210 supplements the FAR market research requirements for DoD acquisitions. It mandates market research before using tiered evaluation of offers and requires using the results to determine small business set-aside eligibility or to justify limiting competition for task/delivery orders. It also emphasizes using market research for price reasonableness and provides procedures for services acquisitions and documentation.

Key rules

• Agencies must conduct market research appropriate to the circumstances before issuing a solicitation that uses tiered evaluation of offers.
• The results of market research must be used to determine whether the criteria in FAR part 19 are met for setting aside the acquisition for small business, or for a task or delivery order, whether there are a sufficient number of qualified small business concerns available to justify limiting competition under the terms of the contract.
• If the contracting officer cannot determine whether the criteria for a small business set-aside are met, the contracting officer must include a written explanation in the contract file as to why such a determination could not be made.
• Contracting officers must use market research, where appropriate, to inform price reasonableness determinations.
• In addition to the notification requirements at FAR 10.001(c)(2)(i) and (ii), see 205.205-70 for the bundling notification publication requirement.
• When contracting for services, follow the procedures in PGI 210.070 for the 'Market Research Report Guide for Improving the Tradecraft in Services Acquisition'.
• See PGI 210.002(e)(ii) regarding potential offerors that express an interest in an acquisition.
• Follow the procedures at PGI 210.002(e)(iii) regarding contract file documentation.

Who does what

In practice

• Before a solicitation with tiered evaluation is issued, market research must be done; this may affect how offers are evaluated and whether small businesses can compete.
• Market research results directly influence whether an acquisition is set aside for small business or whether competition is limited for task/delivery orders, impacting your opportunity to bid.
• For services acquisitions, a specific market research report guide (PGI 210.070) must be followed, which may shape the requirements and evaluation approach.
• If the contracting officer cannot determine small business set-aside criteria, a written explanation is placed in the contract file, which may lead to full and open competition.

Common pitfalls

• Assuming that market research is only for large acquisitions; DFARS 210.001 requires it before any solicitation with tiered evaluation of offers.
• Failing to use market research results to assess small business set-aside criteria; this could result in an improper set-aside or lack thereof.
• Not documenting why a small business set-aside determination could not be made; this written explanation is mandatory when the contracting officer cannot determine if criteria are met.
• Overlooking the bundling notification publication requirement at 205.205-70 when notifying under FAR 10.001(c)(2).

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.