Government Market Research: How Federal Agencies Find and Evaluate Contractors

Quick Answer: What is Government Market Research?

Government market research is the process federal agencies use to learn about available contractors, products, and services before issuing solicitations. By participating in market research activities like RFIs and industry days, contractors can shape requirements, demonstrate capabilities, and gain early insight into upcoming opportunities.

RFI

Request for Info

Sources

Sought Notices

Industry

Days & Events

Early

Engagement

What is Government Market Research?

Market research is a mandatory step in the federal acquisition process, required by FAR Part 10. Before issuing a solicitation, contracting officers must research the marketplace to determine what products and services are available, what commercial practices exist, and whether small businesses can fulfill the requirement.

This research helps agencies write better requirements, identify potential sources, and make informed decisions about acquisition strategy. For contractors, the market research phase represents a critical opportunity to influence the procurement before it's formally competed.

What Agencies Learn from Market Research

→Available sources and their capabilities
→Whether small businesses can perform the work
→Commercial practices and customary terms
→Realistic pricing expectations
→Technical feasibility of requirements
→Best acquisition approach (set-aside, full competition, etc.)

Why Market Research Matters to Contractors

Participating in market research activities is one of the most valuable business development activities you can do. The benefits extend far beyond just learning about opportunities.

Benefits of Participation

✓Early visibility into upcoming opportunities
✓Opportunity to shape requirements
✓Build relationships with program offices
✓Understand competitive landscape
✓More time to prepare competitive proposals

Information You Can Gain

✓Contract scope and potential value
✓Timeline for solicitation release
✓Evaluation criteria priorities
✓Small business set-aside intentions
✓Agency concerns and priorities

Types of Market Research Notices

Agencies use various types of notices to gather information from industry. Understanding each type helps you respond appropriately.

Request for Information (RFI)

RFIs ask industry for detailed information about capabilities, products, pricing approaches, or technical solutions. They typically include specific questions the agency wants answered.

→Usually includes specific questions to answer
→May request capability statements or pricing information
→Responses help shape the eventual solicitation

Sources Sought Notice

Sources sought notices are used to identify potential contractors and determine if sufficient qualified sources exist, particularly for small business set-aside decisions.

→Determines if small business set-aside is appropriate
→Typically requests capability statements
→Critical for small businesses to respond

Draft Solicitation / Draft RFP

Some agencies release draft solicitations for industry review and comment before issuing the final version. This allows contractors to identify issues with requirements.

→Opportunity to comment on requirements
→Can identify ambiguous or restrictive terms
→Preview of evaluation criteria

Special Notice

Special notices announce upcoming acquisitions, provide general information, or announce industry events. They may not request a formal response but signal future opportunities.

→May announce industry days or conferences
→Provides advance notice of acquisitions
→Track these for planning purposes

How to Respond to RFIs and Sources Sought

A strong response to market research notices demonstrates your capabilities and helps ensure the final requirements work for your solution.

Elements of a Strong Response

1.Company Overview: Brief description of your business, size, and NAICS codes
2.Relevant Experience: Past performance on similar work
3.Technical Capabilities: How you can meet the stated requirements
4.Specific Answers: Direct responses to questions asked
5.Suggestions: Constructive feedback on draft requirements
6.Socioeconomic Status: Small business certifications you hold

Do

✓Answer all questions asked
✓Be specific about your capabilities
✓Provide constructive suggestions
✓Follow page limits and formatting instructions
✓Submit before the deadline

Don't

✗Submit generic marketing materials
✗Exaggerate capabilities
✗Only criticize without offering solutions
✗Ignore the questions to push your agenda
✗Miss the submission deadline

Industry Days and Events

Industry days are events where agencies present information about upcoming acquisitions and allow contractors to ask questions and network. These events are invaluable for business development.

Types of Industry Events

Industry Day

Large event covering a major acquisition, often with presentations and Q&A sessions.

Pre-Solicitation Conference

Meeting to discuss draft requirements and answer questions before RFP release.

One-on-One Meetings

Individual sessions between contractors and agency representatives.

Capability Briefings

Opportunity for contractors to present their capabilities to program offices.

Getting the Most from Industry Days

✓Register early as space is often limited
✓Research the acquisition beforehand
✓Prepare thoughtful questions to ask
✓Bring capability statements and business cards
✓Network with potential teaming partners
✓Take detailed notes for proposal preparation

Positioning Strategies During Market Research

Use the market research phase strategically to position your company for success in the eventual competition.

Shape Requirements to Your Strengths

Provide feedback that, while genuinely helpful to the agency, also aligns requirements with your capabilities. If you have unique technical expertise, explain why that approach best serves the government's needs.

Establish Technical Credibility

Demonstrate deep understanding of the requirement and domain expertise. Agencies remember contractors who provide valuable insights during market research.

Build Relationships Early

Market research is the appropriate time to engage with program offices. Once the solicitation is released, communication becomes restricted. Use this window to build relationships.

Identify Teaming Opportunities

Pay attention to which other contractors respond to market research. Industry days are excellent networking opportunities to identify potential partners for joint proposals.

Common Mistakes to Avoid

Not Responding at All

Many contractors ignore market research notices, missing a critical opportunity. Even if you're unsure about pursuing the opportunity, responding keeps you informed and visible.

Generic Responses

Submitting a standard capability statement without addressing specific questions signals you didn't read the notice carefully and reduces your credibility.

Overly Aggressive Sales Pitches

Market research is about information exchange, not hard selling. Provide helpful information and let your capabilities speak for themselves.

Missing Deadlines

Late responses are typically not considered. Monitor SAM.gov regularly and set up alerts for opportunities in your space.

Frequently Asked Questions

Does responding to an RFI obligate me to bid?

No. RFI responses are for informational purposes only and do not obligate you to submit a proposal when the solicitation is released. However, you should respond if you have genuine interest, as agencies note which companies engaged early.

Are RFI responses evaluated like proposals?

No, RFI responses are not evaluated competitively. The information is used to inform acquisition planning. However, the quality of your response does influence how the agency perceives your company.

How do I find market research notices?

Market research notices are posted on SAM.gov under Contract Opportunities. Filter by notice type to find Sources Sought, Special Notices, and other pre-solicitation notices. Set up saved searches for automatic alerts.

Should small businesses respond to sources sought notices?

Absolutely. Sources sought notices help agencies decide whether to set aside acquisitions for small businesses. If qualified small businesses don't respond, the agency may determine no set-aside is appropriate, opening competition to large businesses.

Can I contact the agency directly during market research?

Generally yes, market research is the appropriate time for direct engagement. The notice will specify a point of contact. Once a solicitation is released, communication becomes restricted to formal channels. Use this window wisely.

Track Market Research Opportunities

BidFinds monitors RFIs, sources sought notices, and industry days so you never miss an opportunity to engage early in the procurement process.

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