April 25, 2007

ACQUIRE THE ADVANTAGE

© Acquisition Solutions, Inc.

National Contract Management Association

The Power of Market Research

Chip MatherPartner

301-261-9849chip.mather@acqsolinc.com

Acquisition Solutions Inc.

April 25, 2007 2© Acquisition Solutions, Inc.

Market Research

Two Types of Market Research General – On Going

—Keep Up With Market Place– Identify New Capabilities, Technologies, Companies

Etc.– Trade Journals, Conferences, Associations

Specific – Tied to Specific Acquisition—FAR 10.002(a) “Acquisitions begin with a description of

the Government’s needs stated in terms sufficient to allow conduct of market research”

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Specific Market Research

Agencies Required to Conduct Market Research Before Developing New Requirements

—Ensure Legitimate Needs are Identified and Trade Offs Evaluated

Purpose is to Develop Most Suitable Approach (Not Solution) For Acquiring Goods and Services Essential For Acquiring Best Value Products and

Services That Solve Mission Critical Challenges

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FAR Market Research Techniques

Contacting Knowledgeable Individuals In Gov and Industry

Review Results of Recent Research For Similar Items

One on One Meetings with Potential Offerors Pre-solicitation Notices, Conferences, Pre-proposal Conferences Draft RFPs Site Visits

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Reality Model

User/Requestor Meet Informally With Number of Sales and Marketing Representatives Find Solution (s) They Like Develop Requirement Around Preferred Solution

— “Wired Specifications”

Your Customers Do Not Trust You or The System To Produce Good Results Majority of Their Time and Effort Spent Gaming

the Process

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Power of Market Research

Done Early and Well Dramatically Shape the Acquisition

—Draw Powerful Solution-Orientated Concepts —Assist in Fundamental Rethinking About the Nature of

the Requirement —Identify “Art of the Possible”

Market Research Should Not Be Used To Validate Acquisition Approach/Concept – But Rather to Craft it!

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Performance-Based Acquisition and Management Process

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Done Right

Early Exchange! Before Solution Locked In! Nothing to Give Away

—No Competitive Advantage to Participants

Most Effective – One on One Market Research Sessions 30 Major Acquisitions - $20+ Billion

Become the Educated Consumer Use the Information to Craft Acquisition Strategy

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Done Right

Identify Industry Leaders In Market Space Who Are the Best in Class?

Invite Them to Participate in One on One Market Research Sessions Tailored to Size and Scope of Acquisition

Emphasis On Commercial and Industry Best Practices Performance Measures and Metrics Innovative Delivery Methods Incentive Programs – Shared Goals and Objectives

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Done Right

Steps Develop High Level “2 pager” on the Problem You Are

Looking to Solve Identify and Invite Potential Participants

—Letter of Invitation– Conduct Market Research to Craft Innovative Acquisition

Strategy For Mission Critical Agency Need (2 Pager)– Given Operational Focus – Limit Marketers

– Operational and Program Managers– If Commercial Division – Bring Some of Them Also!– Include Agenda– Bring Samples, Examples, Best Practices

– Performance metrics/SLAs etc.– Information Presented Will Be Treated as Proprietary

April 25, 2007 11© Acquisition Solutions, Inc.

Done Right

Call To Ensure Lead Understands Purpose Marketing Pitch = Short Meeting Interested in Learning How To Best Craft Strategy

— Results in Shared Goals and Objectives—Any Areas of Specific Interest

– How Long Due Diligence Should Take…etc– Special Considerations

Who Will Attend From Government Side Participation in Market Research Is Not Tied to

Actual Competition!

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Done Right

Agenda 15 Min Introductions 60 Min Best Practices

—What Works, What Doesn’t —“If You Were Us, What Would You Do?” Why!

60 Min Performance Measures/Metrics—How Do You Measure Success?

– Samples and Examples

60 Min Incentive Plans and Programs—Win - Win Contract Structures and Plans

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Done Right

Conduct of Session-Make it Meaningful No Recordings! Open Ended Questions –

—If You Were Us, How Would You Approach…—What Are We Doing That is Driving You Crazy!

Interactive – Intent is For Government to Learn!—Ask Questions - Delve Into Advantages and Pitfalls

About Various Approaches– No Death By PowerPoint!

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Done Right

Significantly Expands Potential Solution Set “Art of the Possible”

Provides Insight On Best Approach Allow You to Craft Acquisition Strategy

—Maximize Quality Competition—Solicit Solutions – Not Compliance—Competition Structured Around Quality of Solution

– Easier To Recognize Good Idea Than It Is To Develop One

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Done Right

Develop Market Research Document Capture Best Practices Maximize Effective Competition

—Empowers Competitors—Justify Acquisition Strategies

Structure Shared Goals and Objectives—Contract Written Around Performance Objectives – Not

Compliance

April 25, 2007 16© Acquisition Solutions, Inc.

Resources

Federal Acquisition Regulation Part 10 – Market Research Part 15 – Contracting By Negotiation

Acquisition Solutions’ Advisory A Program Manager’s Guide to Realizing Marketplace

Potential —www.acqsolinc.com

7 Step Performance Based Acquisition Visit the OFPP-sponsored website:

http://www.acquisition.gov/comp/seven_steps/home.html

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Supported by the OFPP-sponsored Interagency PBSA Working Group:

http://www.acquisition.gov/comp/seven_steps/library3.html

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