DR Capstone Brief March 1998

1
The Two Faces of Market Research What You Need
to Know
Judith R. Oxman Defense Intelligence Agency 15
May 2007
2
Identifying and AddressingBusiness Risks
Meeting Customer Expectations
Obtain Cost Data to Develop an Independent
Government Cost Estimate
Mapping Customer Requirements to Socioeconomic
Goals and Corporate Capabilities
Identify Sources Capable of Satisfying Customer
Requirements
Requirements Definition for Business Decisions
Identification of Currently Existing Contract
Vehicles and Availability of Commercial Items
Competition Requirements/ Availability
Acquisition Reform Legislation/ Capability
Annual Appropriations and Authorizations
CFO Act Compliance
3
Rational Market Research
Folklore is not useful actionable intelligence is

• Rational market research keeps government
  customers informed so they can make rational and
  informed decisions for (a) competition, (b)
  streamlining, and (c) technological availability
• Objective, not biased
• Relevant to identified needs
• Useful for timely decision-making

• Market research is conducted for (a)
  ascertaining capability, commerciality, and
  potential contracting methodology in order to
  satisfy warfighter requirements and (b) reducing
  risks

Determining what business capabilities are
available in the marketplace and their
characteristics whether more than one firm
exists in this business area
Is the concept technologically feasible, are
there any products or services that can satisfy
it, or will it need to be nurtured and developed
INVESTIGATION SURVEILLANCE
4
Market Research Same World, Different Lens
Government
How many companies are available and qualified to
do the work?
Capacity
Are funds and time available and adequate?
Companies
How many firms have the required expertise?
Technologies
Is effective competition anticipated?
What program risks exist?
Are commercial products already available?
Acquisition Methods
What methods can be used to fulfill the need?
Stakeholders
When is the item needed?
Industry
What does the customer need?
What does the customer want?
5
The Market Assessment
A common language and definitions are key

• DIA goals
• Customer management
• Just-In-Time access and collaboration
• Enterprise infrastructure
• Investment management
• Proper workforce skill mix
• Technological innovation

• Get a sharp picture of the market or market
  segment of interest
• Products or solutions collaborative systems or
  services and solutions
• Customer base stakeholders and users
• Performance location
• Map available commercial and or nondevelopmental
  items that are available in the marketplace into
  the DIA framework, consistent with the DIA goals
  and Strategic Plan

6
The Market Assessment (2)
Avoid drinking old bath water

• Potential drivers
• Continuation of status quo
• Assessment and implementation potential for
  high-risk technologies
• Ageing of civilian workforce
• Wartime events that create spikes in demand
• Legislation and regulation

• Next, refine the requirements and the acquisition
  strategy
• Work with technical experts in government and
  industry
• Determine the timeframe to fulfill the
  requirement and its expected lifespan
• Apply experience to better define solution

7
The Market Assessment (3)
Total DIA budget (estimated)
Anticipated obligations and expenditures
DIA requirements that cannot be satisfied
internally
???B
???B
???B
DIA needs for professional services, technology,
and solutions that cannot be satisfied with
internal resources
???B
Knowledge of the market, its dynamics, and
requirements history directly impact acquisition
decisions
Requirements that are prime candidates to fill
current year needs
8
The Market Assessment (4)
Finding something to chase

• Candidate requirements are a byproduct of
  ongoing market assessments
• Opportunities that are immediately actionable
• Known requirement
• Industry partners identified
• Specific milestones and
• timeframe
• Government champion
• Strategic opportunities are emerging based on
  technological advances and can be focused by
  input from industry

• Where can industry find these candidate
  requirements?
• Opportunities that are immediately actionable
• Federal Business Opportunities (FedBizOpps)
  Notices
• Conferences
• ESI Program
• Strategic opportunities
• FedBizOpps Notices
• Industry Days
• Technology Forums
• Conferences

9
The Market Assessment (5)
Sizing up the marketplace to learn what it has to
offer

• More definitive market focus by the Government
• New legislation and policy
• Change in workforce dynamics
• New missions undertaken
• Analysis can also discover
• New technologies
• Newly negotiated contracts
• Degree of risk tolerance
• Realignment and/or change in socioeconomic
  policies and goals

ID/IQs
BPAs
Definitive
Contracts
New Awards
GSA
Schedules
Needed
10
The Market Assessment (6)

• Gap analysis
• Inventory the current environment
• Market potential identified
• List of target companies
• Organizational dynamics
• Security requirements
• Develop relevant courses of action and a roadmap
• Test sensitivity of selected courses of action
  through industry forums
• Write an acquisition plan

Getting from here to there
11
The Market Assessment (7)

• Business focus areas
• Intelligence analysis
• Information technology solutions
• Linguist capabilities
• Business management solutions
• Facilities support
• Security clearance processing
• Research and development opportunities
• Personnel solutions
• Training solutions

• Some gap analysis topics
• Market availability
• Competitive analysis
• Means of leveraging corporate capabilities
• Effective and appropriate use of existing
  contract vehicles
• Expandability of currently collaborative base
• Partnering arrangements already in existence by
  industry
• Security clearance issues
• Subcontracting potential

12
Connecting the Circles
Dont operate in a vacuum

• Sensible market research is invaluable for making
  informed decisions about how to best fulfill the
  Governments
• Rational market research should deliver
  objective, relevant, and useful informationnot
  folklore
• Success requires resource commitment
• Regularly and consistently
• At all phases in the acquisition process
• From all members of the acquisition team
• And some market acumen

13
Market Research Results

• What do we do with our results?
• Informally document the information Summarize the
  information collected
• Keep copies of specific data collected
• Keep copies of corporate literature received
• Formally document the information
• Prepare a Market Research Report
• Include information on approach used, data and
  sources used to gather the information, and any
  conclusions or recommendations derived from the
  information

14
Summary

• Market Research is the key to the marketplace
  and assists the acquisition team in making
  intelligent and cogent decisions. It should be
  done on an ongoing basis not only when a specific
  need is identified. Good market research helps
  us avoid the pitfalls we may face by hasty
  introduction of untested solutions in the Global
  War on Terror.

15
Appendix

• Federal Enterprise Architecture
• Agency initiatives and budgets
• Regulatory drivers, initiatives
• Legislation, FAR, DFARS
• People
• Agency decision makers
• Procurement offices
• End-users
• FedBizOpps
• DIA Acquisition Website
• http//www.dia.mil/contracting/index.htm

• Agency procurement methods
• Acquisition planning processes
• Contract types and selections
• Corporate profiles
• Edgar on-line
• Dunn Bradstreet
• Central Contract Registry
• Cost estimating methods
• GSA Schedules
• Commodity pricing in DLA or GSA Advantage!, DoD
  eMall
• Labor surveys
• Geographic information