FAR Part 10: How Market Research Empowers Small Businesses

By ensuring government contracting officials are required to do their market research, FAR Part 10 helps to level the playing field for small businesses by requiring federal agencies to consider the capabilities of small businesses and provide opportunities for them to compete for government contracts.

The Federal Acquisition Regulation (“FAR”) is a set of rules and guidelines established by the U.S. federal government for the acquisition of goods and services by federal agencies. FAR Part 10 specifically covers market research and is aimed at ensuring that the government conducts adequate research to determine the availability of commercial items or services that can meet its needs.

FAR Part 10 instructs federal contracting officials to “On an ongoing basis, take advantage (to the maximum extent practicable) of commercially available market research methods in order to effectively identify the capabilities of small businesses and new entrants into federal contracting, that are available in the marketplace for meeting the requirements of the agency…”

By requiring federal agencies to conduct market research to determine if commercial items or services are available that meet the government’s needs, FAR Part 10 intentionally creates opportunities for small businesses. This market research must include an evaluation of small business capabilities and whether small businesses are able to meet the government’s requirements.

Government buyers first determine an expected contract value and a category for the contract. The expected contract value plays a large role in the type of contract to be awarded. Small business receive first consideration for any awards under $250,000 and should make themselves visible in all public searches including the Dynamic Small Business System (“DSBS”), FedBiz Connect database, company website.

For example, if the award value is expected to be less than $10,000, the federal government utilizes a micro purchase and simply procures the product or services without a solicitation by using their government credit card.

If the contract value is more than $10,000, but less than $250,000, of which the majority of federal contracts fall within this range, then the government buyer utilizes the Simplified Acquisition Procedures (“SAP”). Under the Simplified Acquisition Procedures threshold, small businesses must be considered for all federal awards under $250,000 if there are two or more small business offerors expected to compete.

By conducting market research that includes small businesses, federal agencies are able to identify small businesses that can provide the goods or services they need. This creates opportunities for small businesses to fairly compete for government contracts.

Additionally, FAR Part 10 requires agencies to consider the potential impact of a procurement on small businesses and to take steps to include diverse socio-economic categories, such as setting-aside certain contracts for certified small businesses for 8(a) Business Development Program (“8(a)”), HUBZone Program (“HUBZone”), Women-Owned Small Business Program (“WOSB”), Service-Disabled Veteran and Veteran-Owned Small Business Program (“SDVOSB/VOSB”), and on the state level Minority Business Enterprise (“MBE”), Disadvantaged Business Enterprise (“DBE”), and Women Business Enterprise (“WBE”). These programs help small businesses gain access to contracts they otherwise wouldn’t have been able to bid on.

What does FAR Part 10 require federal agencies to do to help small businesses?

1. To conduct market research to determine the availability of commercial items or services that can meet their needs, the FAR provides small businesses with an opportunity to be considered as potential suppliers. This means that small businesses are no longer excluded from the procurement process based solely on their size or lack of government contracting experience.
2. To evaluate small business capabilities as part of their market research, the FAR ensures that small businesses are considered on their merits and that their potential to meet the government’s needs is assessed fairly. This evaluation includes an assessment of a small business’s technical capabilities, financial resources, and past performance.
3. To set-aside certain contracts for small businesses, which gives small businesses an opportunity to compete for these contracts without having to compete against larger and more established companies.
4. To provide assistance to small businesses to help them compete for contracts, which can include providing training, mentoring, and other resources to help small businesses develop the necessary skills and capabilities to compete effectively.

Overall, by requiring federal agencies to consider the capabilities of small businesses and providing opportunities for them to compete for government contracts, FAR Part 10 helps to level the playing field for small businesses and provides them with an opportunity to grow and succeed in the federal marketplace.

FedBiz Access (“FedBiz”) has an experienced team that works with small businesses and takes the time to get to know their business and ask questions to ensure they have a solid contracting plan. FedBiz is a leading government contracting business development and marketing firm that provides set-aside certification registrations, as well as SAM & DSBS registration, GSA Schedules, market research, and engagement strategy coaching.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.

Your Government Registration Level (“GRL”) is your roadmap from registration to award.