Market Research: How to Influence Your Competitive Edge  
 
 
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Market Research: How to Influence Your Competitive Edge

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By Holly Powell, Manager, NC Military Business Center, Craven Community College

When someone in the federal Government decides there is a need for an item or service and funding for that purchase is identified, an acquisition is born.  There are some important initial steps then taken by Government personnel, usually the Contracting Officer (KO), that determine how that acquisition will be conducted. 

And how the acquisition is conducted directly affects whether your firm will be eligible to compete and win the resultant contract!

One of the first steps the KO will undertake is “market research”.  Market research is basically a survey of what products and/or services are available in the commercial marketplace that are comparable to the need that the end user has identified.

The results of market research often drive the specification (for products) or statement of work (for services) that the Government ends up using in a solicitation.   In addition, the results will drive whether the KO ultimately decides to conduct a full and open competition under which any firm can submit an offer or whether the acquisition is a set aside of some type. 

You should care about both of these results since you want the specification/statement of work to favor your product or service and you want to be able to compete while also limiting your competition.

So, how do you influence market research?  The first way is simple, straightforward marketing just like you do in the commercial marketplace.  Learn which offices in the federal Government buy your kinds of products and/or services and market directly to them. 

You can register for free at www.MatchForce.org, the official NC website that matches firms to business opportunities and job seekers, and conduct searches to see who is buying what you sell.  You can attend trade fairs and symposiums (see the Calendar of Events at www.ncmbc.us), and you can peruse federal websites for lists of what each agency buys and how to contact the Small Business Specialist or Small and Disadvantaged Business Utilization Specialist (SADBU) for each buying office. 

You should develop a one-page capability statement that provides basic information about your firm including contact info, CAGE Code, socio-economic status and a concise description of your capabilities.  Email this statement to the contacts you locate via your searches and take it with you to trade fairs and meetings with Government officials.  

The other major way to influence market research is to respond to the Sources Sought Notices which are posted at www.fbo.gov.   You will be automatically matched to these notices by registering your firm at www.MatchForce.org.  Sources Sought Notices tell you that the government is planning an acquisition and request responses from interested firms.  Sometimes the KO will ask for input on the specifications or statement of work and sometimes he/she will just ask for capability statements from interested firms.  The notice will tell you exactly what your response should contain and the due date.

Your goal in developing your response is to convince the Government that your firm can meet the Government’s requirements AND that the competition should be limited to the smallest pool of your competitors.  In other words, if your firm is an 8(a) certified firm, a Service-Disabled Veteran-Owned Small Business, a HUBZone certified firm or just a Small Business, you want to make a case for the Government to set-aside that acquisition under the socio-economic program for which you qualify.  And, strange as it may seem, to bolster your case, you should encourage your competitors to also respond. 

You may even want to bring up information about your competitors in your response!  If the KO is not convinced that a set-aside will result in receipt of at least two proposals which lead to a contract at a fair market price, you’ll be stuck competing with the big guys!

One caution—when a federal agency issues a Sources Sought Notice seeking information from interested vendors, you should only reply if you are serious about submitting a proposal once the competition starts.  Based on the responses that an agency receives to Sources Sought Notices, they may decide to conduct an 8(a) competition, a Service-Disabled Veteran-Owned Small Business set-aside, a HUBZone set-aside or a Small Business set-aside. 

If the agency uses one of these acquisition methods and receives no proposals at all or none that are acceptable and reasonably priced, the agency is much less likely to conduct a set-aside for future requirements.  So, take those Sources Sought Notices seriously!

For more details about how to pursue federal Government contracts, contact the NC Military Business Center at 877-245-5520 or go to www.ncmbc.us and click on the Contact Us tab.

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