Contract action, as used in this part, means an action resulting in a contract, as defined in subpart  2.1, including actions for additional supplies or services outside the existing contract scope, but not including actions that are within the scope and under the terms of the existing contract, such as contract modifications issued pursuant to the Changes clause, or funding and other administrative changes.

Contracting officers must publicize contract actions in order to-

      (a) Increase competition;

      (b) Broaden industry participation in meeting Government requirements; and

      (c) Assist small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns in obtaining contracts and subcontracts.

For any requirement in the FAR to publish a notice, the contracting officer must transmit the notices to the GPE.

This part applies to all acquisitions except—

      (a) Contracts awarded using the simplified acquisition procedures of part  13 (but see 13.501 for requirements pertaining to sole source acquisitions of commercial products or commercial services, under subpart  13.5);

      (b) Contracts awarded using contracting procedures (other than those addressed in this part) that are expressly authorized by statute;

      (c) Contract modifications, that are within the scope of the contract, including the exercise of priced options that were evaluated as part of the original competition (see 17.207(f));

      (d) Orders placed under requirements contracts or definite-quantity contracts;

      (e) Orders placed under indefinite-quantity contracts that were entered into pursuant to this part when-

           (1) The contract was awarded under subpart  6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained in the order; or

           (2) The contract was awarded under subpart  6.3 and the required justification and approval adequately covers the requirements contained in the order; or

      (f) Orders placed against task order and delivery order contracts entered into pursuant to subpart  16.5.

No agency shall contract for supplies or services from another agency for the purpose of avoiding the requirements of this part.

Regardless of the source of supplies or services to be acquired, information technology acquisitions shall comply with capital planning and investment control requirements in 40 U.S.C.11312 and OMB CircularA-130.

      (a) Except as required by 8.003, or as otherwise provided by law, agencies shall satisfy requirements for supplies and services from or through the mandatory government sources and publications listed below in descending order of priority:

           (1) Supplies.

                (i) Inventories of the requiring agency.

                (ii) Excess from other agencies (see subpart  8.1).

                (iii) Federal Prison Industries, Inc. (see subpart  8.6).

                (iv) Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart  8.7).

                (v) Wholesale supply sources, such as stock programs of the General Services Administration (GSA) (see 41 CFR 101-26.3), the Defense Logistics Agency (see 41 CFR 101-26.6), the Department of Veterans Affairs (see 41 CFR 101-26.704), and military inventory control points.

           (2) Services. Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart  8.7).

      (b) Sources other than those listed in paragraph (a) of this section may be used as prescribed in 41 CFR 101-26.301 and in an unusual and compelling urgency as prescribed in 6.302-2 and in 41 CFR 101-25.101-5.

      (c) The statutory obligation for Government agencies to satisfy their requirements for supplies or services available from the Committee for Purchase From People Who Are Blind or Severely Disabled also applies when contractors purchase the supplies or services for Government use.

Agencies shall satisfy requirements for the following supplies or services from or through specified sources, as applicable:

      (a) Public utility services (see part  41).

      (b) Printing and related supplies (see subpart  8.8).

      (c) Leased motor vehicles (see subpart  8.11).

      (d) Strategic and critical materials (e.g., metals and ores) from inventories exceeding Defense National Stockpile requirements (detailed information is available from the DLA Strategic Materials, 8725 John J. Kingman Rd., Suite 3229, Fort Belvoir, VA 22060-6223).

      (e) Helium (see subpart  8.5-Acquisition of Helium).

If an agency is unable to satisfy requirements for supplies and services from the mandatory sources listed in 8.002 and 8.003, agencies are encouraged to consider satisfying requirements from or through the non-mandatory sources listed in paragraph (a) of this section (not listed in any order of priority) before considering the non-mandatory source listed in paragraph (b) of this section. When satisfying requirements from non-mandatory sources, see 7.105(b) and part  19 regarding consideration of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including 8(a) participants), and women-owned small business concerns.

      (a)

(1) Supplies. Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts, and any other procurement instruments intended for use by multiple agencies, including blanket purchase agreements (BPAs) under Federal Supply Schedule contracts (e.g., Federal Strategic Sourcing Initiative (FSSI) agreements accessible at http://www.gsa.gov/fssi (see also 5.601)).

           (2) Services. Agencies are encouraged to consider Federal Prison Industries, Inc., as well as the sources listed in paragraph (a)(1) of this section (see subpart  8.6).

      (b) Commercial sources (including educational and non-profit institutions) in the open market.

Insert the clause at 52.208-9, Contractor Use of Mandatory Sources of Supply and Services, in solicitations and contracts that require a contractor to provide supplies or services for Government use that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled. The contracting officer shall identify in the contract schedule the supplies or services that shall be purchased from a mandatory source and the specific source.

This part prescribes policies and procedures for conducting market research to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services. This part implements the requirements of 41 U.S.C. 3306(a)(1), 41 U.S. C. 3307, 10 U.S. C. 2377, and 6 U. S.C. 796.

      (a) Agencies shall—

           (1) Ensure that legitimate needs are identified and trade-offs evaluated to acquire items that meet those needs;

           (2) Conduct market research appropriate to the circumstances–

                (i) Before developing new requirements documents for an acquisition by that agency;

                (ii) Before soliciting offers for acquisitions with an estimated value in excess of the simplified acquisition threshold;

                (iii) Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost;

                (iv) Before soliciting offers for acquisitions that could lead to consolidation or bundling ( 15 U.S.C.644(e)(2)(A)) and 15 U.S.C. 657q);

                (v) Before awarding a task or delivery order under an indefinite-delivery/indefinite-quantity (ID/IQ) contract (e.g., GWACs, MACs) for other than a commercial product or commercial service in excess of the simplified acquisition threshold ( 10 U. S.C. 2377(c)); and

                (vi) 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 in furtherance of-

                     (A) A contingency operation or defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; and

                     (B) Disaster relief to include debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief activities (See 26.205); and

           (3) Use the results of market research to–

                (i) Determine if sources capable of satisfying the agency’s requirements exist;

                (ii) Determine if commercial products or commercial services, or, to the extent commercial products suitable to meet the agency’s needs are not available, nondevelopmental items are available that-

                     (A) Meet the agency’s requirements;

                     (B) Could be modified to meet the agency’s requirements; or

                     (C) Could meet the agency’s requirements if those requirements were modified to a reasonable extent;

                (iii) Determine the extent to which commercial products, or nondevelopmental items could be incorporated at the component level;

                (iv) Determine the practices of firms engaged in producing, distributing, and supporting commercial products or commercial services, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking;

                (v) Ensure maximum practicable use of recovered materials (see subpart  23.4) and promote energy conservation and efficiency;

                (vi) Determine whether consolidation is necessary and justified (see 7.107-2) ( 15 U.S.C. 657q);

                (vii) Determine whether bundling is necessary and justified (see 7.107-3) ( 15 U.S.C.644(e)(2)(A));

                (viii) Determine whether the acquisition should utilize any of the small business programs in accordance with part  19; and

                (ix) Assess the availability of supplies or services that meet all or part of the applicable information and communication technology accessibility standards at 36 CFR 1194.1 (see subpart  39.2).

      (b) When conducting market research, agencies should not request potential sources to submit more than the minimum information necessary.

      (c) If an agency contemplates consolidation or bundling, the agency—

           (1) When performing market research, should consult with the agency small business specialist and the local Small Business Administration procurement center representative (PCR). If a PCR is not assigned, see 19.402(a); and

           (2) Shall notify any affected incumbent small business concerns of the Government's intention to bundle the requirement and how small business concerns may contact the appropriate Small Business Administration procurement center representative (see 7.107-5(a)).

      (d) See 10.003 for the requirement for a prime contractor to perform market research in contracts in excess of $6 million, other than contracts for the acquisition of commercial products or commercial services (section 826 of Pub. L. 110-181).

      (a) Acquisitions begin with a description of the Government’s needs stated in terms sufficient to allow conduct of market research.

      (b) Market research is then conducted to determine if commercial products, commercial services, or nondevelopmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs.

           (1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant. Market research involves obtaining information specific to the product or service being acquired and should include-

                (i) Whether the Government’s needs can be met by-

                     (A) Products or services of a type customarily available in the commercial marketplace;

                     (B) Products or services of a type customarily available in the commercial marketplace with modifications; or

                     (C) Products or services used exclusively for governmental purposes;

                (ii) Customary practices regarding customizing, modifying or tailoring of products or services to meet customer needs and associated costs;

                (iii) Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made;

                (iv) The requirements of any laws and regulations unique to the item being acquired;

                (v) The availability of items that contain recovered materials and items that are energy efficient;

                (vi) The distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and

                (vii) Whether the Government's needs can be met by small business concerns that will likely submit a competitive offer at fair market prices (see part  19).

           (2) Techniques for conducting market research may include any or all of the following:

                (i) Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements.

                (ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements.

                (iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications.

                (iv) Querying the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other Government and commercial databases that provide information relevant to agency acquisitions.

                (v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers.

                (vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources.

                (vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.

                (viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.

                (ix) Reviewing systems such as the System for Award Management, the Federal Procurement Data System, and the Small Business Administration's Dynamic Small Business Search.

      (c) If market research indicates commercial products, commercial services, or nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with 10.001(a)(3)(ii) and determine whether the need can be restated to permit commercial products, commercial services, or nondevelopmental items to satisfy the agency’s needs.

      (d)

(1) If market research establishes that the Government’s need may be met by a type of product or service customarily available in the commercial marketplace that would meet the definition of a commercial product or commercial service at subpart  2.1, the contracting officer shall solicit and award any resultant contract using the policies and procedures in part  12.

           (2) If market research establishes that the Government’s need cannot be met by a type of item or service customarily available in the marketplace, part  12 shall not be used. When publication of the notice at 5.201 is required, the contracting officer shall include a notice to prospective offerors that the Government does not intend to use part  12 for the acquisition.

      (e) The head of the agency shall document the results of market research in a manner appropriate to the size and complexity of the acquisition.

The contracting officer shall insert the clause at 52.210-1, Market Research, in solicitations and contracts over $6 million, other than solicitations and contracts for the acquisition of commercial products or commercial services.

As used in this part-

Reconditioned means restored to the original normal operating condition by readjustments and material replacement.

Remanufactured means factory rebuilt to original specifications.

      (a) In fulfilling requirements of 10 U.S.C.2305(a)(1), 10 U.S.C.2377, 41 U.S.C.3306(a), and 41 U.S.C.3307, agencies shall-

           (1) Specify needs using market research in a manner designed to-

                (i) Promote full and open competition (see part  6), or maximum practicable competition when using simplified acquisition procedures, with due regard to the nature of the supplies or services to be acquired; and

                (ii) Only include restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized by law.

           (2) To the maximum extent practicable, ensure that acquisition officials-

                (i) State requirements with respect to an acquisition of supplies or services in terms of-

                     (A) Functions to be performed;

                     (B) Performance required; or

                     (C) Essential physical characteristics;

                (ii) Define requirements in terms that enable and encourage offerors to supply commercial products or commercial services or, to the extent that commercial products suitable to meet the agency’s needs are not available, nondevelopmental items, in response to the agency solicitations;

                (iii) Provide offerors of commercial products, commercial services, and nondevelopmental items an opportunity to compete in any acquisition to fill such requirements;

                (iv) Require prime contractors and subcontractors at all tiers under the agency contracts to incorporate commercial products, commercial services, or nondevelopmental items as components of items supplied to the agency; and

                (v) Modify requirements in appropriate cases to ensure that the requirements can be met by commercial products or commercial services or, to the extent that commercial products suitable to meet the agency’s needs are not available, nondevelopmental items.

      (b) The Metric Conversion Act of 1975, as amended by the Omnibus Trade and Competitiveness Act of 1988 ( 15 U.S.C.205a, et seq.), designates the metric system of measurement as the preferred system of weights and measures for United States trade and commerce, and it requires that each agency use the metric system of measurement in its acquisitions, except to the extent that such use is impracticable or is likely to cause significant inefficiencies or loss of markets to United States firms. Requiring activities are responsible for establishing guidance implementing this policy in formulating their requirements for acquisitions.

      (c) To the extent practicable and consistent with subpart  9.5, potential offerors should be given an opportunity to comment on agency requirements or to recommend application and tailoring of requirements documents and alternative approaches. Requiring agencies should apply specifications, standards, and related documents initially for guidance only, making final decisions on the application and tailoring of these documents as a product of the design and development process. Requiring agencies should not dictate detailed design solutions prematurely (see 7.101 and 7.105(a)(8)).

      (d)

(1) When agencies acquire products and services, various statutes and executive orders (identified in part 23) require consideration of sustainable acquisition (see subpart 23.1) including-

                (i) Energy-efficient and water-efficient services and products (including products containing energy-efficient standby power devices) (subpart 23.2);

                (ii) Products and services that utilize renewable energy technologies (subpart 23.2);

                (iii) Products containing recovered materials (subpart 23.4);

                (iv) Biobased products (subpart 23.4);

                (v) Environmentally preferable products and services, including EPEAT®-registered electronic products and non-toxic or low-toxic alternatives (subpart 23.7); and

                (vi) Non-ozone-depleting substances, and products and services that minimize or eliminate, when feasible, the use, release, or emission of high global warming potential hydrofluorocarbons, such as by using reclaimed instead of virgin hydrofluorocarbons (subpart 23.8).

           (2) Unless an exception applies and is documented by the requiring activity, Executive agencies shall, to the maximum practicable, require the use of products and services listed in paragraph (d)(1) of this section when-

                (i) Developing, reviewing, or revising Federal and military specifications, product descriptions (including commercial item descriptions) and standards;

                (ii) Describing Government requirements for products and services; and

                (iii) Developing source-selection factors.

      (e) Some or all of the performance levels or performance specifications in a solicitation may be identified as targets rather than as fixed or minimum requirements.

      (f) In accordance with section 508 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794d), the contracting officer shall obtain from the requiring activity the requirement documents, which must identify—

           (1)The needs of current and future users with disabilities to determine how–

                (i)Users with disabilities will perform the functions supported by the information and communication technology (ICT);

                (ii)The ICT will be developed, installed, configured and maintained to support users with disabilities;

           (2)The applicable ICT accessibility standards (see subpart  39.2); and

           (3)Any ICT accessibility standards that cannot be met due to an exception or an exemption for any component or portion of the product (see 7.105(b)(5)(iv), 39.204, and 39.205).

      (g) Unless the agency Chief Information Officer waives the requirement, when acquiring information technology using Internet Protocol, the requirements documents must include reference to the appropriate technical capabilities defined in the USGv6 Profile (NIST Special Publication 500-267) and the corresponding declarations of conformance defined in the USGv6 Test Program. The applicability of IPv6 to agency networks, infrastructure, and applications specific to individual acquisitions will be in accordance with the agency's Enterprise Architecture (see OMB Memorandum M-05-22 dated August 2, 2005).

      (h) Agencies shall not include in a solicitation a requirement that prohibits an offeror from permitting its employees to telecommute unless the contracting officer executes a written determination in accordance with FAR 7.108(a).

Subcontract, as used in this part, includes, but is not limited to, a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor or subcontractor.