Market Research Best Practices for Government Buyers

At GoVets, several of our Government Buyers reach out as part of their Market Research activities, so we want to share our thoughts based on our knowledge, experience and observations.

Market Research Best Practices

Government buyers conduct market research in order to identify and procure products from qualified suppliers and diversified small businesses. Market research is a critical component of the procurement process and helps buyers to gather information on the available products, services, and suppliers in the market. This information is then used to make informed purchasing decisions that meet the needs of the government agency and its constituents.

Market research typically starts with a needs assessment, which helps government buyers to understand the requirements of the agency and its stakeholders. This assessment considers factors such as the type of product or service needed, the specifications and standards required, the desired delivery time, and the budget available. The needs assessment is critical in guiding the market research process, as it provides a clear understanding of what is required and what the goals of the procurement process are.

Once the needs assessment is complete, the next step in the market research process is to gather information on the available products, services, and suppliers in the market. This can be done through a variety of methods including online research, market surveys, industry reports, and trade shows. Market research can also involve reaching out to suppliers and asking for information on their products and services. This is an important step, as it helps buyers to determine the quality, reliability, and availability of the products and services offered by different suppliers.

Once the market research is complete, government buyers can then begin to evaluate the products, services, and suppliers available in the market. This is done by comparing the products and services offered by different suppliers and evaluating their ability to meet the needs and requirements of the agency. Evaluation criteria may include product specifications, delivery time, pricing, and the reputation of the supplier.

In addition to evaluating products and services, government buyers must also evaluate the suppliers themselves. This is critical in ensuring that the supplier has the financial stability, capacity, and capability to deliver on their commitments. Evaluation criteria for suppliers may include financial stability, experience and history in the market, and the ability to deliver on time and on budget.

Another important factor to consider when conducting market research is compliance with procurement regulations and laws. The government has strict regulations in place to ensure that procurement activities are conducted in a fair and transparent manner. As such, government buyers must consider the compliance status of suppliers, including the compliance with the Trade Agreements Act (TAA) and the Buy American Act (BAA).

One way that government buyers can ensure compliance with procurement regulations and laws is by including a requirement for TAA or BAA compliant products in the Request for Proposal (RFP). This requirement helps to ensure that suppliers are aware of the requirement and are able to provide compliant products. Additionally, government buyers can work with suppliers to understand their compliance status and help them to understand the requirements for compliance.

In addition to compliance with procurement regulations and laws, government buyers must also consider the importance of diversity and equal opportunity in the procurement process. The government has a commitment to promoting equal opportunity and supporting small and diverse businesses, and government buyers must consider these factors when conducting market research and evaluating suppliers. This can include evaluating the diversity of the supplier base, as well as the policies and practices of the suppliers in terms of equal opportunity and diversity.

Another important factor to consider when conducting market research is the potential for small business set-asides. Small business set-asides are procurement opportunities that are reserved specifically for small businesses. By participating in small business set-asides, government buyers can support the growth of small and diverse businesses and help to promote competition in the marketplace.

When conducting market research, government buyers must also consider the importance of sustainability and environmental responsibility. The government is committed to promoting sustainability and reducing the environmental impact of its procurement activities, and government buyers must consider these factors when buying products from suppliers.

Where can government buyers conduct market research online?

There are several online resources that government buyers can use to conduct market research:

Federal Business Opportunities (FedBizOpps): This is the official government website for federal procurement opportunities. It provides information on procurement opportunities, contract awards, and solicitations.
SAM.gov: The System for Award Management (SAM) is the official government website for managing federal procurement information. It provides access to procurement opportunities and contracts, as well as information on registered suppliers.
GSA Advantage!: This is the official online procurement platform for the General Services Administration (GSA). It provides access to a wide range of products and services from pre-approved suppliers.
GovBid: This is a search engine that provides access to procurement opportunities from federal, state, and local governments.
State Procurement Websites: Many states have their own procurement websites that provide information on suppliers and contracts within the state.
Trade Shows: There are a number of trade shows and events that are specifically designed for government buyers. These events provide opportunities to meet with suppliers and learn about the latest products and services available in the market.
Industry Reports: There are a number of industry reports and market research studies available online that provide information on the latest trends, technologies, and products in specific markets.
Trade Associations and Professional Organizations: There are a number of trade associations and professional organizations that represent specific industries or product areas. These organizations can provide valuable information and resources for government buyers conducting market research.
Google: Simple online searches can yield a wealth of information about products, services, and suppliers in specific markets.

These are just a few of the many online resources available to government buyers conducting market research. By leveraging these resources, government buyers can access the information they need to make informed purchasing decisions and find qualified suppliers and diversified small businesses.

How can Government Buyers use the Federal Supply Schedule to their advantage when doing market research for potential suppliers?

The Federal Supply Schedule (FSS) is a program run by the General Services Administration (GSA) that provides government buyers with access to a wide range of products and services from pre-approved suppliers. By using the Federal Supply Schedule, government buyers can take advantage of several key benefits, including:

Simplified Procurement Process: The Federal Supply Schedule streamlines the procurement process by providing a list of pre-approved suppliers that have been thoroughly vetted by the GSA. This eliminates the need for government buyers to conduct extensive market research and reduces the time and effort required to find qualified suppliers.
Access to Diverse Suppliers: The Federal Supply Schedule provides access to a diverse range of suppliers, including small businesses and women-owned businesses. This increases the opportunities for government buyers to work with suppliers from a variety of backgrounds and perspectives, helping to create a more diverse and inclusive procurement process.
Competitive Pricing: The Federal Supply Schedule provides government buyers with access to competitive pricing on a wide range of products and services. This helps to ensure that the government gets the best value for its procurement dollars.
Contractual Flexibility: The Federal Supply Schedule provides government buyers with contractual flexibility, allowing them to purchase products and services on an as-needed basis or through blanket purchase agreements. This helps to reduce the administrative burden and improve the efficiency of the procurement process.
Improved Contract Administration: The Federal Supply Schedule provides government buyers with a centralized system for contract administration, making it easier to manage contracts and monitor supplier performance.

By using the Federal Supply Schedule, government buyers can take advantage of these benefits and find the products and services they need from qualified and pre-approved suppliers. This helps to reduce the time and effort required to find and work with suppliers, and improve the efficiency and effectiveness of the procurement process.

How do Government buyers take the BAA (Buy American Act) in consideration when making purchase decisions?

The Buy American Act (BAA) is a federal law that requires government buyers to purchase products that are manufactured in the United States. When making purchase decisions, government buyers take the BAA into consideration in several ways:

Reviewing Product Origin: Before making a purchase, government buyers will review the origin of the product to determine if it is manufactured in the United States. If the product is manufactured abroad, the government buyer will need to consider other factors, such as the extent of domestic content and the application of trade agreements, in order to determine if it qualifies for an exception to the BAA.
Evaluating Cost and Availability: Government buyers must consider both the cost and availability of the product in order to determine if it is in the best interest of the government to purchase a domestically manufactured product, even if it is more expensive than a foreign-made product.
Ensuring Compliance with Trade Agreements: Government buyers must also ensure that their purchase decisions are in compliance with any applicable trade agreements, such as the World Trade Organization’s Agreement on Government Procurement, which may provide exceptions to the BAA.
Checking for Waivers: If a product is not manufactured in the United States, the government buyer may request a waiver from the BAA in order to purchase it. This request will be reviewed by the appropriate government agency to determine if it is in the best interest of the government to grant the waiver.
Consulting with Legal Counsel: When making a purchase decision, government buyers may consult with legal counsel to ensure that their decision is in compliance with the BAA and any other applicable laws and regulations.

By taking the BAA into consideration when making purchase decisions, government buyers can ensure that they are purchasing products that are manufactured in the United States, in accordance with federal law, and that meet the needs of the government in an efficient and cost-effective manner.

How can Government Buyers make open market purchase decisions under the micro-purchase threshold?

Under the micro-purchase threshold, government buyers can make open market purchase decisions using simplified acquisition procedures, which are designed to be quick and efficient while still ensuring that the government obtains high-quality goods and services. Here are the steps that government buyers can take when making open market purchase decisions under the micro-purchase threshold:

Identifying the Need: The first step is to identify the need for a specific product or service. Government buyers should clearly define the requirement and determine the specifications and delivery requirements for the product or service.
Conducting Market Research: Next, government buyers should conduct market research to determine the availability of the product or service in the open market. This research should include an evaluation of various suppliers and the products or services they offer.
Comparing Prices: Once government buyers have identified several potential suppliers, they should compare prices to determine which supplier offers the best value for the government. They should also consider factors such as delivery time, product quality, and past performance when making this comparison.
Making a Purchase: After determining the best supplier, the government buyer can make a purchase under the micro-purchase threshold. The buyer should ensure that the supplier is a responsible source and that the product or service meets the required specifications.
Verifying Receipt: Finally, the government buyer should verify that the product or service has been received and is in good condition. If there are any issues with the product or service, the buyer should work with the supplier to resolve them in a timely manner.

These steps will help government buyers make open market purchase decisions under the micro-purchase threshold in a manner that is both efficient and compliant with federal laws and regulations.

What are the primary payment mechanisms that government buyers choose when making open market purchases under the micro-purchase threshold?

When making open market purchases under the micro-purchase threshold, government buyers typically choose one of the following payment mechanisms:

Government Credit Card: The most common payment mechanism used by government buyers for micro-purchases is a government credit card. This is a fast, secure, and efficient way to make small purchases without the need for additional approvals or documentation.
Electronic Funds Transfer (EFT): Another payment mechanism used by government buyers is Electronic Funds Transfer (EFT). This allows government buyers to make payments directly from their bank accounts to the supplier’s bank account, without the need for checks or other physical payment methods.
Purchase Order (PO): A purchase order (PO) is a written request to a supplier to deliver a specific product or service at a specific price. POs are typically used for larger purchases and provide a clear record of the terms and conditions of the purchase.
Micro-purchase Card: Some government agencies have established micro-purchase card programs, which are specifically designed for small purchases under the micro-purchase threshold. These programs provide government buyers with a streamlined process for making purchases and tracking expenses.

The payment mechanism chosen will depend on the specific requirements of the procurement and the policies of the government agency involved. However, the most common payment mechanisms used by government buyers for open market purchases under the micro-purchase threshold are government credit cards and Electronic Funds Transfer (EFT).

Where do Government Buyers make most of their micro-purchases?

Government buyers make most of their micro-purchases through a variety of online marketplaces and e-commerce platforms, including:

GSA Advantage: GSA Advantage is an online shopping and ordering system for federal, state, and local government buyers. It offers a wide range of products and services from pre-approved suppliers, including those that are TAA compliant.
FedMall: FedMall is a government-wide e-commerce platform that allows government buyers to purchase products and services from a variety of suppliers, including small businesses and TAA-compliant suppliers.
NASA SEWP: NASA SEWP (Solutions for Enterprise-Wide Procurement) is a government-wide procurement contract for technology products and services. It offers a wide range of products and services, including those that are TAA compliant, and is available to all federal agencies.
Amazon Business: Amazon Business is a platform that offers a wide range of products and services to government buyers, including those that are TAA compliant. It provides a user-friendly shopping experience and allows government buyers to make purchases using a variety of payment methods, including government credit cards and electronic funds transfer (EFT).
GoVets: Government-focused online stored with 3+ millions of products that span categories including Industrial, MRO, Office Supplies, Electronics, Medical & Health, Cleaning & Janitorial and more. Government Buyers get 100% free shipping and special Government pricing upon signing up for an account. Government Buyers can filter on products that are TAA compliant and Made-In-USA to ensure they are purchasing items under the Trade Act Agreement (TAA) and the Buy America Agreement (BAA). GoVets is a VA-verified Service-Disabled Veteran-Owned Small Business so all purchases count towards target SDVOSB/VOSB set-aside goals across the Government.

These platforms provide a convenient and efficient way for government buyers to make micro-purchases and help ensure that they are able to find the products and services they need at the best possible price. The platform used will depend on the specific requirements of the procurement and the policies of the government agency involved.

How can Government Buyers take advantage of GoVets.com?

Government buyers can take advantage of GoVets.com by using it as a resource to procure compliant products that meet their needs, including:

Access a wide range of products and a service-disabled veteran-owned small business: GoVets.com offers a diverse selection of products from an SDVOSB, making it easier for government buyers to find what they need in one convenient location.
Support veteran-owned small businesses: By purchasing products and services from a veteran-owned small business, government buyers can help support the entrepreneurial efforts of veterans and contribute to their financial success.
Meet small business and veteran-owned small business goals: By using GoVets.com, government buyers can help meet their agency's small business and veteran-owned small business procurement goals.
Streamline the procurement process: GoVets.com streamlines the procurement process by providing a user-friendly platform for government buyers to find and purchase products and services from qualified suppliers.
Enhance supplier diversity: GoVets.com can help government buyers enhance supplier diversity by connecting them with a network of veteran-owned small businesses that may not have been on their radar otherwise.
Reduce procurement costs: By using GoVets.com, government buyers can reduce procurement costs by accessing a wide range of products and services at competitive prices from veteran-owned small businesses.