what is market research procurement

FAC Number: 2024-05 Effective Date: 05/22/2024

Part 10 - Market Research

10.000 scope of part., 10.001 policy., 10.002 procedures., 10.003 contract clause..

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. 3453 , 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. 3453(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

(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 sustainable products and services (as defined in 2.101 ) in accordance with subpart 23.1 ;

(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.

(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

(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.

(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 .

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Procurement Market Research

What Is Procurement?

Procurement covers all areas of getting the goods and services a firm needs. It includes the goods needed for the firm’s day-to-day tasks, sourcing, pricing terms, and buying goods. It also covers getting and testing goods as required and keeping track of the whole process. When we compare value, size, time, and place, we see how procurement works. The benefit is that the buyer gets the best price for the goods or service.

Why Is Procurement Market Research Important?

Most people view procurement as a vital role in the private sector to grow profit. They see it as a helping hand to streamline processes and reduce raw material prices and costs. It also helps to find better supply sources. In other words, it assists in improving the “bottom line.” Indeed, many firms recognize the importance of procurement. In some cases, they even place the head of procurement on the executive board.

The public sector does not have to pay out dividends for investor shares. It does not have to disclose its profit (or loss) publicly. So the term “bottom line” is less well-formed. Thus, the procurement practices in this sector may be a little different. Still, public sector monies come from public sources, such as grants and student fees. As taxpayers, students, and workers, we are partners in the sector. Therefore, good procurement practices are a basic need to manage the funds granted in a fair manner that shows both virtue and value for money.

Key Job Titles

procurement manager.

A procurement manager’s job is simple. It is to make sure that their company buys the goods or services to help them achieve their goals. This job covers finding supplier partners who help bridge the gap between quality and price. Also, their tasks tend to review the company’s past trades. This function focuses on the areas of the seller’s potency, the audit, and, in the end, the company’s return on investment (ROI).

Why Does Business Need Procurement Market Research?

A robust procurement process is key to the success of any business. It means that you’re paying the right price for goods and services and it minimizes delivery times. It also helps you choose the best partners to work with your business.

You must also maintain good relations with your vendors. It’s the route to successful business operations. It helps to meet your clear targets while achieving all stakeholder interests. Firms can avoid costly downtime. They can also boost their bottom lines by adopting innovative procurement methods.

Key Success Factors

To achieve even more gains, companies are changing their procurement methods. But, some firms do not like changes to their procurement functions. Still, creating or defining the procurement function is critical to a company’s success. Business owners can make incremental improvements. These improvements add up, and in the end, they take the company to a world-class level. The key success factors are:

Planning and specification
Choosing and identifying suppliers
Proposals: Requesting, negotiating, and contracting
Control and distribution
Analysis and measurement

About Procurement Market Research

Qualitative research aims to have a broad knowledge of clients’ behavior. Companies also need the reasons for the clients’ repurchase of products and services.

We save money and ensure success for your company while also providing fitting data to assist with sales tracking. Live interviews and surveys are other tools that we use. We gather information about clients’ thoughts about services rendered.

The best-known market research tool is the focus group, with which we collect quantitative and in-depth data. We also use focus groups to gather data on products and services.

Procurement market research can help you better understand your market or target clients. It can also keep your firm ahead of the competition.

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The Contracting Education Academy

March 19, 2018 By AMK

Market research: To do or not to do?

Department of defense (dod) acquisition teams currently struggle to obtain clear and consistent market research documentation on a regular basis..

In 2017, the International Journal of Market Research noted that no one possesses a “crystal ball” for obtaining information on a specific market, especially given the regular disruptions or changes in various market sectors over the last 30 years. Does your acquisition team have a crystal ball for obtaining information on a specific business market sector? Are your team’s research methodology and documentation adequate to get clear and concise results?

For an interpreter of public contract law and regulations, many more catechisms will come to mind: Do acquisition teams place any value or importance in completing market research? What are the required elements in market research? What is the proper time to complete market research? Should market research be undertaken at all?

The governance statute of market research comes from Competition in Contracting Act of 1984 (CICA). Many sources state that the empirical requirement of market research comes from the Federal Acquisition Streamline Act of 1994, which only clarified the differences between the commercial and noncommercial items. CICA requires research of a market for competition and possible sources for a requirement. The governance regulation for market research is found in Part 10 of the Federal Acquisition Regulation (FAR). According to FAR Part 10, market research documentation needs to entail and describe requirements from the acquisition team.

One source of guidance provided to agencies is found in GAO’s bid decision and case studies. GAO’s publication, Market Research: Better Documentation Needed to Inform Future Procurements at Selected Agencies , GAO-15-8 , describes market research as a dynamic process of examining a marketplace or obtaining intelligence about a sector. The publication, issued late in 2014, noted that market research provides the dynamics “used to collect and analyze data about capabilities in the market that could satisfy an agency’s procurement needs.”

Decisions in the federal court system, including the Supreme Court, have clarified the role of market research in procurement processes. In 2015, the U.S. Supreme Court ruled in Kingdomware Technologies v. the United States that market research is required in order to understand products and services in a particular market sector.

Observations over the last 30 years indicate that many acquisitions teams “put the cart before the horse” when obtaining the outcome of a hypothesis or question about possible sources for a product or service. These thoughts transcend public and private sector acquisition teams and lack value or purpose in market research. From the start, we need to understand what research entails and its importance.

In 2017, the Merriam-Webster’s Dictionary noted that research is a planned exploration of materials and sources to establish facts and conclusions. Documentation of research must include methodology, structure and guidance on how to interpret the data. Without a general framework or structure for interpretation, the data collected are worthless to the acquisition teams and customer.

Furthermore, in 1992, The Journal of Marketing Research noted there is a relationship between the source and the customer of market research. All stakeholders need to be able to trust the outcome of the market research. Not just the information, but the sources and interpretation of the whole process.

In 2017, The Balance website ( thebalance.com ) noted that the purpose of research on business marketplaces is to narrow results to a specific target in a market. Additionally, in 2017, Entrepreneur magazine reported that market research is a dynamic to gather, evaluate, and illuminate market information about a product or service for sale. Also, the term “market intelligence” has popped up in the business world in connection with market research. There is a slight difference between market intelligence and market research. In 2015, Business News Daily defined market intelligence as the information obtained to make a business determination — i.e., acquisition strategy.

And in 2017, the Bureau of Labor Statistics classified market research as the process of evaluating market conditions concerning a probable need for product or services by a customer and obtaining data from various sources. This information provides a clear understanding of vendors’ marketplace positions and their pricing and ability to perform the work required.

Methodology and the Right Question

Now that there is an understanding the purpose and value of researching a market sector for products and services, your team needs the right tools for acquiring this knowledge. In July 2015, Raconteur’s Future of Market Research publication noted the five critical steps to obtaining the best outcome of researching a market sector: compute a meaningful topic; compile new or old results; have questions in any survey seek more information than the price; and enable effortless communication of the results.

In 2017, Entrepreneur magazine noted that an acquisition professional’s research of a business sector would acquire primary and secondary information or data. Primary data is directly received from the source. This information typically derives from a Request for Information (RFI) or Sources Sought (SS), industry days or questioning vendors. Secondary data research assembles information from governmental organizations — e.g., agencies, trade associations and local chambers of commerce.

In developing the requirement, RFI or SS can be complicated and a challenge for most teams. As stated earlier, GAO’s case study of DoD’s contracting of market research was inadequate in many ways, including its determination of price reasonableness. The typical technique for finding price reasonableness is to look at a vendor’s published pricing, historical data or industry surveys. For example, a government survey can ask, “What have you charged for this product or service in the past?”

At times, the acquisition teams forget to ask the right questions. Initially, asking the right questions in developing the market intelligence is very important. The topics should include cost, historical experience information, technical information, and management information.

The following additional questions should get your team thinking:

To what agency have you provided the product or service?
After reviewing the RFI, SS or draft Performance Work Statement or Statement of Work, is your firm interested in submitting a proposal to the following Request for Proposal [RFP], Request for Quote [RFQ], or Broad Agency Announcement?
Is your firm interested in Prime or Subcontractor work?

Responsiveness Versus Responsibility

From my experience, acquisition professionals use the market research process as a “Down Select” or Pre-Source Selection instead of obtaining market intelligence. Businessdictionary. com defines a “Down Select” as a reduction in sources as the acquisition team proceeds through the process. Acquisition professionals use methodology for determination of responsibility to eliminate a possible source of a product or service that is felt to lack sufficient responsibility. Procurement dynamics of responsibility determination or FAR Part 9 requirements need to be completed by the contracting officer and acquisition team later in the process. This step usually is completed after proposals from an RFP or RFQ are obtained, which makes responsibility determination a part of source selection.

In 2011, GAO stated that the contracting officer only needs to make a determination of responsiveness from the market research tools — e.g., RFI, Industry Days. Additionally, the market intelligence will assist in deciding acquisition strategies — e.g., Small Business Set-Asides (SBSA) or Full and Open Competition. For example, the respondent to a RFI or SS need only answer the intent of a question to its fullest, then the vendor’s information should go toward an acquisition strategy, such as SBSA. The Cambridge Dictionary defines responsiveness by an organization or individual to a communication or request as one that is made in a satisfactory speedy manner. For this discussion, ‘respondent’ is typically a business or vendor that provides a service or product in a certain market. In 2010, the Journal of Business & Industrial Marketing noted that responsiveness consists of a vendor’s response to a customer’s need that can affect or improve performance.

Acquisition professionals can use market research results or market intelligence in various ways to arrive at a business decision for the federal government. The data outcome should represent a cross-section of a market sector. The market research processes should have built-in validity and reliability methods to make sure the data represents a particular market sector. The acquisition team should look at each data point. The market research also needs to address limitations and delimitations. A data point could be anomalous and not genuinely represent a market sector or be generated within a constantly changing industry, such as that of information technology.

Another example of understanding the market intelligence would be the following: The results or market intelligence from an RFI or SS show no responses or interest to provide a service or product. In such a case, an acquisition team typically would go to a different route or source. First, the acquisition team should re-evaluate the requirements package and research methodology for shortcomings, inconsistencies and clarifications. The more information provided to a market sector in market research the better will be the market intelligence that a team acquires.

As public servants, we need to ensure that research and intelligence of the market sector are done completely and thoroughly as outlined in CICA and FAR 10. Also, acquisition professionals need to ask the right questions and provide correct information to the market sector in order to obtain precise results. Furthermore, the market research documentation should always include a robust method, timeframe, analysis of the data, and a recommended procurement strategy. Passing on a little knowledge provides us with purpose and direction.

This article appears in the March-April 2018 edition of Defense AT&L Magazine. The article was written by Claude L. Cable, a freelance author, teacher and acquisition professional. He holds a doctorate of Business Administration and is a Certified National Contract Manager (National Contract Management Association). The author can be contacted at [email protected]

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3.1 Market Research

Section three: market research, 3.1 key information, 3.1.1 market research phase process flow.

The market research phase of the procurement lifecycle is defined as the process of defining the specific need and determining the most appropriate acquisition method for a procurement. The market research phase is arguably the most important phase of the procurement lifecycle in that it is where the research is performed, the vast majority of major decisions are made about the procurement, and where the key components necessary to manage the contract after award are incorporated prior to solicitation.

The following are the major steps in the process flow for the market research phase:

3.2 Perform Market Research

Once the Procurement Officer has completed the initial Procurement Strategy Plan in collaboration with the Procurement Team , the process of market research should begin. Market research refers to examining available sources of information to find available goods, services, construction and sources of supply, which may meet identified critical business requirements. The level of effort put into market research should be commensurate with the size and complexity of the procurement.

In preparation of a solicitation, the Procurement Team should consider the following factors:

Is funding available? What is the project budget?
Is the good, service, or construction currently under contract, either at an agency or state level?
Who are the major vendors that tend to supply the goods, services, or construction?
Is there a meaningful choice of supply in the market?
How do local peers contract for the goods, services, or construction?
How do other states contract for the goods, services, or construction?
What is the estimated cost/price other agencies/States have paid for goods, services and construction similar in scope and magnitude to your procurement?

While an exhaustive review of sources of supply may not be feasible or practical, the goal of market research is to identify a variety of potential sources of supply. By identifying the potential sources of supply, the Procurement Officer and Procurement Team are able to analyze various goods, services, and construction offerings. Studying various offerings is essential to developing a solicitation that is not biased in favor of a single source of supply or otherwise reducing the pool of suppliers capable of meeting the state’s critical business requirements.

Although the Procurement Team may have knowledge of certain specific goods, services, or suppliers, the Procurement Officer should not rely exclusively on stakeholders’ knowledge. Instead, the Procurement Officer must actively engage in market research by accessing informational resources such as the Internet, industry organizations, consultant reviews, advertisements, cooperative procurement entities, or industrial publications. The Procurement Officer should also consult with other public entity Procurement Officers with similar purchasing needs, both within and outside of Hawaii.

As potential sources of supply are identified, the Procurement Officer may contact potential suppliers directly to request information. The Procurement Officer’s contact with potential suppliers may occur informally, such as by telephone or email. The Procurement Officer may determine a more formal method of gathering information from suppliers, such as the Request for Information discussed below.

3.3 Request For Information (RFI)

A Request for Information (RFI) is a method for requesting information from suppliers who have knowledge or information about an industry, goods, services, or construction. The Procurement Officer should use the RFI method when it is considered impractical to initially prepare a definitive purchase description, when informal discussions with vendors are not productive, or it is required by statute, HRS 103F.((The Request for Information discussed in this section should not be confused with the mandatory Request for Information required in purchases of Health and Human Services under HRS 103F and HAR 3-142. )) The RFI process for HRS 103F procurements is discussed in Section 4.6 .

The RFI method is not a competitive solicitation method and, as a result, does not satisfy the requirement for competitive bidding. The RFI method is no more than an information gathering tool, and such information gathered may or may not be used by the state agency to develop a competitive solicitation.

The RFI should detail the objective of the procurement and include, but not be limited to:

A description of the information requested of vendors;
A method for receiving the requested information;
A statement that the response is to provide the purchasing agency with recommendations that will serve to accomplish the work required by the procurement;
A statement that the purchasing agency reserves the right to incorporate in a solicitation, if issued, any recommendations presented in the response to the request for information; and
A statement that neither the purchasing agency nor the supplier responding has any obligation under the request for information.

If the Procurement Team has developed an initial specification or statement of work, it can provide this in the RFI and ask that vendors validate the requirements and provide feedback and comments that will help the State reach its procurement objectives.

While an RFI can be useful, it should only be used when truly seeking input from the vendor community for the solicitation. If the Procurement Team does not intend to incorporate the information and/or feedback it receives then it should not utilize the RFI method. Also Procurement Teams are strongly cautioned against using an RFI as a method to restrict future competition on the resulting solicitation. This can occur when in the team incorporates only the proposed delivery model or other unique features of a single bidder in the final scope or specifications. Vendors are not required to respond to an RFI and a vendor’s failure to respond to an RFI will not prohibit the vendor from responding to any competitive solicitation that may result from the RFI.

3.4 Industry Day

An agency may consider holding an industry day event in order to present its plans for a current or future procurements and seek input concerning current industry practices related to the requirement from members of the vendor or contractor community. An industry day is usually held prior to the release of an RFP. It is an opportunity for the agency to provide the vendor community with a detailed overview of its procurement requirements and solicit feedback about the procurement. Various methods for hosting these meetings may be offered, such as webinars, video conferences, telephone conferences, or other methods.

Industry days are particularly useful when an agency has a complex program or project where multiple contracts of varying scope and magnitude will be required to complete the project. Industry day goals include:

Ensuring collaboration between the agency program office and vendors
Incorporating vendor comments into the RFP development process
Communicating program requirements and schedule
Gaining a better understanding of recent industry or market developments
Providing updates to vendors on future program developments and procurements
Providing a forum for contractors to network with potential subcontractors, subconsultants, and/or the small business community for upcoming procurements.

3.5 Internal Government Estimate

In the market research phase the Contract Administrator, working with the Procurement Team, should take the time to develop an internal government estimate for the anticipated cost of the requirement. The internal estimate must be independent from the offeror’s proposal, which is why this estimate is often called an Independent Government Estimate. Independent development is vital because this estimate normally provides your first indication of a reasonable contract price and it is also one of the bases that you should consider in contract price analysis. The estimate development process may be automated or manual, but the best estimates reflect the findings from the market research. Section 4.7.2 covers elements of cost or price analysis to establish the estimated cost of the requirement. For in-depth guidance on developing your internal estimate, refer to our Basic Pricing Guide , Chapters 2 and 3 on Independent Government Estimates.

3.6 Determine Contract Type

3.6 determine the contract type.

Another key decision that must be made during the planning phase is what contract type to utilize. Unlike the method of procurement, that determines how you are going to solicit bids for the project, the contract type will determine how the bidders will price the goods, services or construction and the contracting environment that will govern the contractual relationship between the State and the Contractor post contract award. Based on market research the Procurement Team should have a good idea how the contractor industry prices work similar to your requirement. This market research will be critical in helping you determine the contract type to solicit.

The Hawaii procurement code allows for a number of contract types including everything from a firm-fixed price or lump sum contract to a time and materials contract. See HAR 3-122 Subchapter 16 for a list of contract types.

The key factor that drives what contract type should be used on any given project is the level of project risk and how to fairly allocate that risk between the State and the Contractor. The chart below shows a continuum of contract types and the associated risk level to either the State or the Contractor.

The following sections provide an overview of the types of contracts available for use in the State of Hawaii

3.6.1 Fixed Price Contracts

The fixed price contract is the only type of contract that can be used in competitive sealed bidding. It places responsibility on the contractor for the delivery of the goods or the complete performance of the services or construction in accordance with the contract terms at a price that may be firm or may be subject to contractually specified adjustments. It is appropriate for use when the extent and type of work necessary to meet the purchasing agency’s requirements can be reasonably specified and the cost can be reasonably estimated, as is generally the case of construction or standard commercial products or some services.

There are two types of fixed price contracts. The firm fixed-price provides a price that is not subject to adjustment due to variations in the contractor’s cost of performing the work specified in the contract. It should be used whenever prices which are fair and reasonable to the purchasing agency can be established at the outset.

The fixed-price contract with price adjustment provides for variation in the contract price under special conditions defined in the contract, other than customary provisions authorizing price adjustments due to modifications to the work. The formula, pricing index or other basis by which the adjustment in contract price can be made must be specified in the solicitation and the resulting contract. Adjustment allowed may be upward or downward only or both depending on the requirement.

An indefinite quantity contract, where the unit price is set but the total number of units may not be set, is a type of fixed price contract.

3.6.2 Cost Contracts

The cost-reimbursement contract , provides for payment to the contractor of allowable costs incurred in the performance of the contract and as provided in the contract. It establishes at the outset an estimated cost for the performance of the contract and a dollar ceiling which the contractor may not exceed, except at its own expense, without prior approval or subsequent approval by the Procurement Officer. It has a provision whereby the contractor agrees to perform as specified in the contract until the contract is completed or until the costs reach the specified ceiling, whichever occurs first.

It is appropriate when the uncertainties involved in contract performance are of the magnitude that the cost of contract performance cannot be estimated with sufficient certainty to realize economy by use of any type of fixed-price contract. It is particularly suitable for research, development, and study type contracts. This contract type necessitates appropriate monitoring by agency personnel during performance to provide reasonable assurance that the objectives of the contract are being met.

It may be used only when it is determined that:

A contract is likely to be less costly to the purchasing agency than any other type or that it is impracticable to obtain otherwise the goods, services, or construction;
The proposed contractor’s accounting system will permit timely development of all necessary cost data in the form required by the specified contract type contemplated; and
The proposed contractor’s accounting system is adequate to allocate costs in accordance with generally accepted accounting principles.

The cost-plus-fixed fee contract is another type of cost-reimbursement contract. It provides for payment to the contractor of an agreed fixed fee in addition to reimbursement of allowable incurred costs. The fee is established at the time of contract award and does not vary whether or not the actual cost of contract performance is greater or less than the initial estimated cost established for the work. Thus, the fee is fixed but not the contract amount because the final contract amount will depend on the allowable costs reimbursed. The fee is subject to adjustment only if the contract is modified to provide for an increase or decrease in the scope of work specified in the contract.

The cost-plus-fixed fee contract can be either a completion form or term form. The completion form is one that describes the scope of work to be performed as a clearly defined task or job with a definite goal or target expressed and with a specified end-product required. This form of cost-plus-fixed fee contract normally requires the contractor to complete and deliver the specified end-product as a condition for payment of the entire fixed-fee established for the work and within the estimated cost if possible. However, in the event the work cannot be completed within the estimated cost, the agency can elect to require more work and effort from the contractor without increase in fee provided it increases the estimated cost. The term form is one that describes the scope of work to be performed in general terms and that obligates the contractor to devote a specified level of effort for a stated period of time. The fixed fee is payable at the termination of the agreed period of time. Payment is contingent upon certification that the contractor has exerted the level of effort specified in the contract in performing the work called for and that the performance is considered satisfactory by the purchasing agency.

The completion form of the cost-plus-fixed fee contract is preferred over the term form whenever the following can be defined with sufficient precision to permit the development of estimates within which prospective contractors can reasonably be expected to complete the work:

The work itself; or
Specific milestones which are definable points in a program when certain objectives can be said to have been accomplished.

In no event should the term form of the cost-plus-fixed fee contract be used unless the contractor is obligated by the contract to provide a specific level-of-effort within a definite period of time.

The cost-plus-a-percentage-of-cost contract is another type of cost-reimbursement contract. Prior to completion of the work, the parties agree that the fee will be a predetermined percentage of the total cost of the work. The contract provides incentive for the contractor to incur cost at the expense of the State since the more the contractor spends, the greater its fee.

Cost-reimbursement and cost-plus-a-percentage-of-cost contracts may only be utilized when the Procurement Officer determines in writing that the contracts are likely to be less costly than any other type of contract or that it is impracticable to obtain the goods, services, or construction required except by means of the contracts.

They are prohibited if their use would jeopardize the receipt of federal assistance funds or reduce the amount of the assistance under any applicable federal statute or regulation.

In addition, award of a cost-plus-a-percentage-of-cost contract may not be made unless:

Notice is given to the head of the compliance audit unit, president of the senate, speaker of the house of representatives, and the chairpersons of the senate ways and means and house finance committees; and
Notice is conspicuously posted in an area accessible to the public in the office of the Procurement Officer and available for public inspection during normal business hours.

For HRS 103F the SPO has established cost principles for purchases of Health and Human Services .

3.6.3 Cost Incentive Contracts

The cost-incentive contract that provides for the reimbursement to the contractor of allowable costs incurred up to the ceiling amount and establishes a formula whereby the contractor is rewarded for performing at less than target costs or is penalized if it exceeds target cost. The profit or fee under the contract will vary inversely with the actual, allowable costs of performance and consequently is dependent on how effectively the contractor controls cost in the performance of the contract.

The fixed-price cost incentive contract is one type of cost incentive contract. The parties establish at the outset a target cost, a target profit, a formula that provides a percentage increase or decrease of the target profit depending on whether the actual cost of performance is less than or exceeds the target cost, and a ceiling price. After performance of the contract, the actual cost of performance is arrived at based on the total incurred allowable costs as provided in the contract. The final contract price is then established in accordance with the formula using the actual cost of performance. The final contract price may not exceed the ceiling price. The contractor is obligated to complete performance of the contract, and, if actual costs exceed the ceiling price, the contractor suffers a loss.

The fixed-price cost incentive contract serves three objectives:

It permits the establishment of a firm ceiling price for performance of the contract that takes into account uncertainties and contingencies in the cost of performance.
It motivates the contractor economically since cost is in inverse relation to profit– the lower the cost, the higher the profit.
It provides a flexible pricing mechanism for establishing a cost sharing responsibility between the State and contractor depending on the nature of the goods, services, or construction being procured, the length of the contract performance, and the performance risks involved.

The cost-reimbursement contract with cost incentive fee is another type of cost-incentive contract. The parties establish at the outset a target cost, a target fee, a formula for increase or decrease of fee depending on whether actual cost of performance is less than or exceeds the target cost, with maximum and minimum fee limitations, and a cost ceiling which represents the maximum amount which the agency is obligated to reimburse the contractor. The contractor continues performance until the work is complete or costs reach the ceiling specified in the contract. After performance is complete or costs reach the ceiling, the total incurred, allowable costs reimbursed in accordance with subchapter 15 and as provided in the contract are applied to the formula to establish the incentive fee payable to the contractor. This type of contract gives the contractor a stronger incentive to efficiently manage the contract than a cost-plus-fixed fee contract provides.

Prior to entering into any cost incentive contract, or any cost-reimbursed contract with cost incentive fee, the Procurement Officer shall make the written determination.

3.6.4 Performance Incentive Contracts

In a performance incentive contract , the parties establish at the outset a pricing basis for the contract, performance goals, and a formula that varies the profit or the fee if the specified performance goals are exceeded or not met. For example, early completion may entitle the contractor to a bonus while later completion may entitle the State to a price decrease.

3.6.5 Time and Materials Contracts

A time and materials contract provides an agreed basis for payment for materials supplied and labor performed. A time and materials contract shall, to the extent possible, contain a stated ceiling or an estimate that shall not be exceeded without prior agency approval. A time and materials contract shall be entered into only after the Procurement Officer determines in writing that:

Contractor has an adequate accounting system that accumulates and segregates costs in a manner that is traceable to the project level;
Agency personnel have been assigned to closely monitor the performance of the work; and
In the circumstances, it would not be practicable to use any other type of contract to obtain needed goods, services, or construction, in the time required, and at the lowest cost or price to the purchasing agency.

3.6.6 Labor Hour Contracts

A labor hour contract provides only for the payment of labor performed. A labor hour contract shall contain the same not to exceed pricing ceiling as the time and materials contract. A labor hour contract also requires the same determination as required for a time and materials contract.

3.7 Update Procurement Strategy Plan

After completing the necessary market research, the Procurement Team should update the original Procurement Strategy Plan based on the market research data. This can be done by updating existing components of the Procurement Strategy Plan or by adding additional information or sections to the original Plan. The goal is to document in a single place the information garnered during the market research phase as it impacts the procurement strategy (i.e., scope, schedule, budget, method of procurement, requirements, etc.). Remember your Procurement Strategy Plan is a dynamic document that should be updated as new information is received.

3.8 Finalize Specs/Scope

3.8 finalize specifications/statement of work, 3.8.1 gathering requirements.

The Procurement Officer must facilitate open dialogue with the identified stakeholders to gather requirements for the procurement. Requirements are the essential features and functions that must be met by the provided good or service. The Procurement Officer should encourage discussion and ask sufficient and pertinent questions to ensure the stakeholders fully understand the requirements. Some examples of questions to consider when collecting requirements are:

Who/what area is impacted by this procurement?
What are the key functions the needed goods/services must meet?
What factors will impact this purchase?
When are the goods/services needed?
Where will goods be delivered and/or services performed?
Why are the goods/services needed?
How must goods/services be provided or delivered?
What key approvals are necessary and who must provide these approvals?
What specific quality or quantity needs must be considered?

If the requirements are incorrectly, inaccurately, or incompletely specified there is little chance the proposed solution will meet agency expectations. Taking the time to ask these questions and elicit input from the Procurement Team will improve the procurement outcomes.

3.8.2 Develop Detailed Specifications/Scope of Work

A specification is any description of the physical or functional characteristics, or of the nature of a good, service, or construction item. The term includes descriptions of any requirement for inspecting, testing, or preparing a good, service, or construction item for delivery. A specification should describe the features and functions of a product or service an agency seeks to procure along with a description of what a vendor must offer to be considered for an award. Specifications are the primary means of communicating agency requirements to the vendor community.

Specifications determine and control the:

Minimum quality level of the product or service;
Suitability of the product or service for the job to be done; and
Method of evaluation used in making an award and determining the best value proposal for the purchase.

The Procurement Officer should develop specifications that meet the following characteristics:

SIMPLE : Avoid unnecessary detail, but provide sufficient information to ensure that requirements will satisfy their intended purpose.
CLEAR : Use terminology that is understandable to the agency and proposers. Use correct spelling and appropriate sentence structure to eliminate confusion. Avoid legalese, specialized language and jargon whenever possible.
ACCURATE : Use units of measure compatible with industry standards. All quantities and packing requirements should be clearly identified.
COMPETITIVE : Identify at least two commercially available brands, makes, or models (whenever possible) that will satisfy the intended purpose. Avoid unneeded “extras” that could reduce or eliminate competition and increase costs.
FLEXIBLE : Avoid inflexible specifications that prevent the consideration or acceptance of a proposal, which could offer greater performance for fewer dollars. Use approximate values such as dimensions, weight, speed, etc. (whenever possible) if they will satisfy the intended purpose. If approximate dimensions are used, they should be within 10% unless otherwise stated in the solicitation document.

The end product of a well-written specification should be expressed as SMART:

S pecific – clearly states what is required
M easurable – to confirm when it has been met
A chievable – can be done, is technically possible
R ealistic – is reasonable, is not cost prohibitive
T imely – achievable within an acceptable timeframe

A scope of work, sometimes called a statement of work, or scope of services, is a description of the requirements of services to be performed. The scope of work may include material requirements to perform the needed services. A scope of work should contain the following information:

Background of the procurement
Objectives to be achieved
Contractor’s tasks
Deliverables
Schedule (performance, deliverables and payment)
Department responsibilities

3.8.2.1 Mandatory Specifications

As the Procurement Team works to develop the specifications it should be aware of statutorily mandated specifications as detailed in Part IV of HRS-103D . In accordance with HRS § 103D-405 , specifications shall seek to promote overall economy and encourage competition, and shall not be unduly restrictive.

Examples of statutory specifications set forth in the procurement code include, but are not limited to:

Roadway construction materials
Construction materials
Hawaiian plants in public landscaping
Light duty vehicles
Recycled products

Outside contractors may be utilized to prepare specifications and work statements in the development of a solicitation. Contractors paid for those services are not allowed to bid on or receive a contract when they participated in any way in the development of the solicitation package or any resulting contract. In all cases, the Procurement Officer and Team should review these statutory requirements to ensure they are properly incorporated into their specifications, as appropriate.

3.8.2.2 Mandatory Specifications for Competitive Purchase of Services – Health and Human Services

HRS § 103F-402 , Competitive purchase of services, was established to promote uniformity in health and human service procurement. Service specifications shall address in detail each of the following items and if an item is not applicable to the request for proposals, the specification must state that it is not applicable:

Minimum or mandatory activities
Probable funding amounts, source, and period of availability
The need or problem the service addresses
Goals of the service
Target population to be served
Geographical coverage of service
Expected outcome measurements
Units of service and unit rate, as applicable
Quality assurance and evaluation specifications, as applicable
Whether single or multiple contracts are to be awarded and define the criteria for the multiple award, if applicable
Whether single- or multi-term contracts are to be awarded and define the terms, including but not limited to initial contract term and conditions for extension
Reporting requirements for program and fiscal data, and provide sample forms and instructions, as available or appropriate
Minimum or mandatory administrative requirements
Minimum or mandatory personnel requirements
Pricing or pricing methodology to be used, as applicable
The method or procedure for compensation or payment

3.9 Develop Proposal Evaluation Strategy

Proposal evaluation, particularly in a RFP , usually consists of an evaluation of mandatory requirements, evaluation criteria and cost/price. The evaluation criteria used to assess proposals consist of the factors and sub-factors that reflect the areas of importance to an agency in its selection decision. Through the evaluation factors, the agency is able to assess the similarities and differences and strengths and weaknesses of competing proposals and, ultimately, use that assessment in making a sound selection decision. In accordance with HRS § 103D-303 for goods, services and construction and HAR § 3-143-205(d) , for health and human services , the evaluation criteria and their relative point value shall be expressed in the RFP and proposals shall be evaluated only on the basis of those criteria . In addition, the RFP must state the relative point value of price to all of the other evaluation criteria. In doing so, offerors are informed of the factors that the agency will consider in determining which proposal best meets its needs, and offerors may use this information to determine how to best prepare their proposals.

In general, evaluation criteria should be tailored to each procurement and include only those factors which will have an impact on contractor selection. The nature and types of evaluation criteria to be used for an acquisition are within the broad discretion of the agency. In order to determine the point allocation for the price /cost factor please refer to the formula discussed below.

Non-cost factors address the evaluation areas associated with technical and business management aspects of the proposal. Examples of non-cost factors include technical and business management concerns such as technical approach and understanding, capabilities and key personnel, transition plans, management plan, management risk, past performance, and corporate resources. The level of quality needed by the agency in performance of the contract is an important consideration in structuring non-cost factors.

Mandatory requirements are requirements an offeror must meet to demonstrate they are legally or otherwise authorized to perform the work described in the RFP. This may include such things as business and/or contractor licensing or board certifications, proof of insurance, bonding requirements, etc. Mandatory requirements are evaluated on a pass-fail basis.

3.9.1 Evaluation Process

The evaluation process is typically divided into four (4) main phases and one (1) optional one. The evaluation phases are:

Evaluation of Mandatory Requirements
Evaluation of Technical Proposals
Evaluation of Cost Proposals
Ranking and Selection
Optional Discussions and Best and Final Offers ( Final Revised Proposals HRS 103F)

The specific steps and processes the Procurement Team will utilize in each step in the evaluation process should be documented in an evaluation plan. This ensures that at the time of evaluation there is a clear and documented process for how the solicitation responses will be evaluated.

3.9.2 Evaluation Factors

It is important to identify all evaluation factors and their relative importance, including price, prior to RFP development. Factors not specified in the RFP shall not be used for evaluating the proposals.

Next, the Procurement Team should begin making a detailed list of the most important aspects of the goods, services or construction required, including cost. Each item on the list is a potential evaluation criterion. From this list, the Procurement Team should group the criteria into categories, referred to as evaluation factors, and arrange the list in sequence of most important. This process will help to determine the most appropriate weighting (see below) and aid in assigning a point value to each factor based on its relative importance. The most important items will naturally be evaluated heavier and have more points available.

Evaluation factors should be individually tailored to each RFP. For criteria to be effective, they should have the following characteristics:

Clear: not subject to multiple interpretations, not ambiguous
Relative: all key elements of the project requirements must relate to the requirement definition and be covered by evaluation criteria
Discriminating: separate best, average and weaker proposals
Non-discriminatory: fair and reasonable
Realistic: given the nature or value of the contract
Measurable: must have distinguishing importance
Economical: use of the criteria should not consume an unreasonable amount of time or resources
Justifiable: make sense and can be justified on common sense, technical and legal basis; mandatory and heavily weighted criteria must be justified

3.9.3 Weighting Factors

Weights reflect the relative importance of each of the evaluation criteria to the agency. A statement in the RFP of the specific weighting to be used for each factor and subfactor, while not required, is recommended so that all offerors’ will have sufficient guidance to prepare their proposals.

Typically, factors are divided in four (4) major categories for evaluation purposes:

Technical approach
Managerial approach
Qualifications, prior experience (past performance) and references

In accordance with HAR § 3-122-52(b) , points assigned to each factor must be presented in the RFP using a numerical rating system, that details the relative priority of each evaluation factor. The following is an example of evaluation factors used in an RFP with a weighted 60/40 split between cost and technical/managerial merit.

Sample Evaluation Factor	Points
Technical Approach	400
Managerial Approach	50
Qualifications, prior experience and references	150
Cost	400
Total Points	1000

In accordance with HAR § 3-122-52(d) , cost is identified as a percentage of the total available points and cost proposals from all offerors are “normalized” meaning that the lowest cost offeror receives 100% of the points available and the other higher cost proposals receive a percentage of the available points based on their submitted cost.

The following is an example of a cost evaluation using the formula mandated in HAR § 3-122-52 .((This formula described in this section does not apply to procurements under HRS 103F.))

Sample Cost Normalization	Points ((Low Bid / Offeror Bid) x Total Points)
Offeror 1 – Low Bidder at $26,000 gets maximum points	400 = (($26,000 / $26,000) x 400)
Offeror 2 – Next Low Bidder at $28,400 gets 91.5% of points	366 = (($26,000 / $28,400) x 400)
Offeror 3 – Highest Bidder at $40,000 gets 65% of points	260 = (($26,000 / $40,000) x 400)

3.9.4 Evaluation Committee

Prior to writing an RFP or Competitive Procurement of Services, the purchasing agency must determine whether the solicitation responses will be evaluated by the Procurement Officer exclusively, or by an evaluation committee of named participants. The following details the requirements for evaluation committees for each of these methods of procurement.

3.9.4.1 RFP Evaluation Committee

Although responses to an RFP may be evaluated by the Procurement Officer, it is generally considered best practice to establish a committee to evaluate proposals for an RFP.

In accordance with HAR § 3-122-45.01 , if an evaluation committee is used it must be composed of a minimum of three (3) governmental employees with sufficient qualifications in the area of the goods, services, or construction to be procured, one of which must be the contract administrator. The contract administrator or a designee shall serve as chairperson, and the Procurement Officer or a designee shall serve as advisor.

Private consultants may also serve (without compensation) on the committee provided that they have the relevant knowledge, do not have a conflict of interest, agree to keep the evaluation and all information they view confidential, and agree to their name being made public upon the award of the contract. See Section 4.4.4 for guidance on how to evaluate proposals.

For the Executive Branch :

Individuals serving on the Evaluation Committee should be documented on form SPO-044 , and each member must complete form SPO-024 , Attestation Serving on an Evaluation, Review or Selection Committee to ensure that there are no potential conflicts.

3.9.4.2 Competitive Purchase of Services Evaluation Committee

For HRS 103F, The Procurement Officer or an evaluation committee selected by the Head of the Purchasing Agency or the Procurement Officer shall review and evaluate the proposals. The approved list of evaluators shall be placed in the procurement file.

Evaluators:

The Procurement Officer; or
A Committee of a minimum of two state employees with the education and training to evaluate the proposals

Non-state employees may serve as advisors only if there is no conflict of interest and shall not represent or act in the selection or award process.

A copy of the document identifying the evaluation committee members and any subsequent changes thereto shall be kept in the procurement file. See Section 4.6.7 for guidance on how to evaluate proposals.

Market Study in Public Procurement

Jorge A. Lynch T.
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Public Procurement and Contract Administration: A Brief Introduction

This book gives you a brief introduction to public procurement and contract administration . It covers the public procurement cycle; procurement planning; requesting, receiving and evaluating bids and proposals; contract negotiations and award; and contract administration (from commencement to close-out). A glossary of terms used in the text is also included, with suggestions for further reading.

Frequently Asked Questions on Public Procurement: A Reference Guide to Procurement and Contract Administration Basics

An introductory text on public procurement and contract administration ; this book walks you through the public procurement process in a question and answer format, from procurement planning through contract administration and management. A glossary of terms used in the text is also included, as well as suggestions for further reading.

Market Research

Market research is an essential tool for public procurement success. It empowers decision-making through the compilation and analysis of information on the capabilities and limitations in the commercial marketplace.

Procurement IQ - 1st Quarter (2024) Inflation & Commodity Trends

Procurement iq - 4th quarter (2023) - inflation & commodity trends, sole source procurement, tech next: ev charging infrastructure, buyer be aware: integrating cybersecurity into the acquisition process, procurement iq - commodity trends yoy recap, procurement iq - 3rd quarter (2024) inflation & commodity trends, procurement iq - 2nd quarter (2024) inflation & commodity trends, tech next: leasing vs. owning hardware and software.

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How to carry out early market engagement successfully – Procurement Essentials

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Procurement Essentials is a series of articles to help you overcome common hurdles, understand key concepts, and make your life as a buyer of everyday goods and services easier

Published 30 June 2022

Last updated 30 June 2022

NB: This article was originally published on 30 June 2022. All information was correct at the time of writing, but may not be fully applicable following the introduction of the Procurement Act 2023.

Early market engagement provides the foundation for a successful procurement by helping buyers make fully informed decisions.

What is “early market engagement”?

Early market engagement (EME), also known as soft market testing, is the process of engaging with potential suppliers before you begin buying goods or services for your organisation. It gives suppliers the opportunity to both inform the specification and to get ready to meet the demand.

Taking the time to carry out EME and gather market intelligence is regarded as ‘best practice’ and recommended as part of the preparation process for any future contract, especially where procurements are complex or of significant value.

Why should you talk to suppliers before you buy?

EME enables you to ask suppliers questions on important issues or decisions which will help you to refine your requirement. It can help you gain a better understanding from the market about what is possible, for example what resources (such as staff, products or equipment) would be needed to fulfil a contract.

Imagine procuring a very specialised asset or building, say a community swimming pool – EME could help you to understand the particular technical requirements of the project, as well as supplier interest and capacity. Suppliers should be able to give you a number of best practice examples to help you when designing your facility. For example, they may be able to advise you on which pool tiles to choose to maximise safety and thermal performance. They may also help you to identify suitable pool types and discuss any technical design issues you have ahead of putting your project out to tender.

EME also increases awareness and interest in your potential procurement and encourages competition, meaning that you will have more suppliers, products and services to choose from when you’re ready to tender.

EME can help you to:

openly and transparently discuss “the problem” and possible solutions
write clearer requirements to include in your specification and business case
encourage competition and ensure a good number of applications
gain a better understanding at an early stage of how much a contract could cost and how long it could take
explore any opportunities for delivering aspects such as innovation, social value or carbon net zero

How and when to talk to suppliers?

It’s a myth that it’s unethical to talk directly with suppliers about your requirements before launching a formal procurement process.

You can engage with the market at any time as long as you comply with the Public Contracts Regulations 2015 , specifically Regulation 40 which states that ‘preliminary market consultation may be used in the planning and conduct of the procurement procedure, provided that it does not have the effect of distorting competition’.

In practice, this means that you must ensure you don’t give any supplier a competitive advantage and that you must:

be open and transparent
maintain commercial confidentiality (such as respecting Intellectual Property Rights )
keep a record of discussions
ensure a process that is fair to ALL suppliers throughout the process
make suppliers aware that any resulting procurement will be conducted competitively

To be most effective, EME activities should begin at the concept stage.

How to identify suppliers to engage with

There is no ‘right’ number of suppliers to speak to, and more isn’t necessarily better. As a general rule you should aim to speak to a wide range and mix of suppliers to represent a reasonable sample of the sector.

If you have chosen to purchase through a framework, it is usually possible to carry out EME with the approved suppliers listed, as long as this has been specified as allowable by the Public Buying Organisation (PBO) responsible for the framework.

For lower value or one-off purchases, for example if you are a school purchasing sports equipment , some simple internet research should be sufficient to identify potential suppliers.

Remember that EME costs suppliers time, effort and money; they need to feel that this investment could be worthwhile, so try to keep the process proportionate to the scale and value of the project.

How to carry out early market engagement

It’s your responsibility as a buyer to decide how you’re going to run the EME process. For particularly sensitive or complex projects, you should seek commercial or legal advice before you start.

The more detail you can give to suppliers about your requirements the easier it will be for them to provide a thorough response. As a minimum, they would expect to know:

the background to your organisation and project
what you want to achieve from the contract
the location of the contract and an indication of timescales / duration
the dates for the conclusion of the EME process and for the submission of any information by suppliers

Obtaining information from suppliers

Processes that can be used to engage with the market vary from the transactional, such as emailed questionnaires, surveys or 1-2-1 meetings, through to more complex and collaborative supplier webinars, conferences or workshops.

CCS has a free eSourcing tool you can use for running procurements under our agreements. Using an eSourcing tool also allows you to ask suppliers questions in advance of a webinar or conference call with them in a more formal way that ensures transparency.

The procurement process following EME

Once you’ve completed the EME process it’s essential that any information obtained does not unduly influence the procurement process that follows, for example that it:

is not used to discriminate for / or against any suppliers such as s mall and medium-sized enterprises (SMEs) , for example by writing your requirements in a way that unfairly excludes a particular supplier or favours one specific supplier
has not been acquired under “false pretences”, e.g. you shared information about your requirements with one supplier that you didn’t share with another supplier
could breach supplier commercial confidentiality

Finally, following the market engagement process it’s important to let potential suppliers know that you’ve heard and responded to feedback. Not only will this improve the market interest in the procurement process for the specific project, it will also encourage higher levels of engagement in future market engagement processes.

Find out more

Download our latest digital brochure for the latest information on our agreements and how we can help you add power to your procurement .

More: You can now find all of our Procurement Essentials articles in one place on our website .

AI in Market Research — Shaping Smarter Procurement

Overview of ai in market research, benefits of ai in market research.

Limitations
Steps For Market Research
Companies That Offer AI

My Insights on AI in Market Research

Frequently asked questions.

Procurement market research exceeds manual work by 30%, reports KPMG.
AI takes over certain processes to cut the time spent on routine tasks in procurement.
Market research is necessary for knowing your consumer base, the latest trends, and other market dynamics.

1. Efficient Research Process

2. ai-powered insights, 3. risk management.

Limitations of AI in Market Research

1. data quality and bias, 2. lack of human context, 3. dynamic markets, steps for market research using ai , 1. find data sources, 2. prepare to analyze data, 3. divide the market, 4. decision support, 5. predictive analytics, companies that offer ai for market research, 1. levadata, 2. scoutbee, what does ai do for market research, what steps should we take using ai in market research, what are the benefits of ai in market research, about the author.

Spend Trends Home

Procurement

Procurement Proc ...

@media(min-width: 1024px){.css-hqxvux{max-width:100%;}} Procurement process flow: From basics to best practices in 2024

Importance of a procurement process

9 steps to follow for a more efficient procurement process, ways to optimize your procurement process, how to optimize your procurement process with brex, supercharge your procurement process.

@media(min-width: 1024px){.css-hqxvux{max-width:100%;}} Effortless expenses start here.

Introduction.

Forget everything you thought you knew about procurement. It's time to pull back the curtain on a business function that's been quietly transforming from a back-office necessity into a strategic powerhouse. Welcome to the new frontier of procurement, where savvy decisions drive innovation and fuel company growth.

This article isn't your typical dry manual of policies and procedures. Instead, think of it as your roadmap to procurement success, filled with insider knowledge and practical strategies that can revolutionize how your business acquires goods and services. We're here to show you how procurement can be a catalyst for change, a driver of efficiency, and yes, even a source of competitive advantage.

From small startups to multinational corporations, smart procurement practices are reshaping industries and redefining what it means to create value. We'll take you on a journey through the evolving landscape of supplier relationships, data-driven decision making, and cutting-edge technologies that are changing the game.

Get ready to dive deep into topics like strategic sourcing, risk management, and the art of negotiation. We'll explore how to build a procurement team that thinks beyond cost-cutting, and how to leverage tools like AI and automation to supercharge your processes. By the time you're done, you'll see procurement not just as a necessary function, but as a key player in your organization's success story.

So, whether you're a seasoned pro looking to sharpen your skills or a newcomer trying to make sense of it all, this article is your ticket to mastering the art and science of modern procurement. Let's redefine what it means to buy smart and spend wisely in ways that truly matter to your bottom line.

What is a procurement process?

A procurement process is a structured series of steps that organizations follow to acquire goods, services, or works from external suppliers. This strategic approach elevates the function above simple purchasing, covering a wide range of activities from identifying needs to managing supplier relationships and evaluating outcomes. At its core, the procurement process is about ensuring that a company obtains the right products or services, at the right time, in the right quantity, from the right source, and at the right price. It involves strategic planning, market research, negotiation, contract management, and ongoing supplier evaluation.

At the heart of organizational success lies the procurement process, a powerful driver of efficiency and cost-effectiveness. A well-designed procurement strategy extends far past finding the lowest price, carefully weighing quality and long-term value to secure essential goods and services. This approach not only trims operational costs but also acts as a shield against supply chain hiccups and quality issues. Effective procurement brings transparency to operations, sparks innovation through smart supplier partnerships, and keeps cash flowing smoothly.

Procurement plays a vital role in nearly every part of a company, doing much more than just buying goods and services. It shapes a company's image and green credentials by prioritizing ethical sourcing and environmental responsibility. As a strategic powerhouse, it influences everything from risk management to innovation, financial health, and corporate values. Companies that tap into the full potential of their procurement processes gain a sharp competitive edge, positioning themselves to hit business targets and thrive in today's dynamic market. In essence, procurement is not just about buying smart—it's about building a resilient, innovative, and responsible organization ready to face the challenges of the modern business landscape.

Optimizing procurement processes is critical for organizations seeking to enhance efficiency, reduce costs, and drive strategic value. By implementing the following nine steps, companies can transform their procurement functions from operational necessities into powerful drivers of business success.

Step 1: Identify the organization's needs and requirements

The first step in the procurement process is to clearly identify the organization's needs and requirements. This crucial phase sets the foundation for all subsequent procurement activities. By thoroughly understanding what the organization requires, procurement professionals can ensure they acquire the right goods or services at the right time and cost. To gather requirements effectively, organizations can employ various methods such as conducting needs assessments, interviewing key stakeholders, and analyzing historical data. These approaches help uncover both explicit and implicit needs across different departments and functions. It's essential to create detailed specifications during this step, outlining not only the technical requirements but also any quality standards, delivery timelines, and budget constraints. Clear and complete specifications help prevent misunderstandings with suppliers and ensure that the procured items or services align perfectly with the organization's expectations and goals.

Step 2: Evaluate potential suppliers and vendors

Once the requirements are established, the next step is to evaluate potential suppliers and vendors. This process involves assessing various criteria such as cost, quality, delivery time, reliability, and financial stability. Organizations often use supplier qualification processes like Requests for Information (RFI), Requests for Proposal (RFP), and Requests for Quotation (RFQ) to gather detailed information about potential suppliers. These tools help in comparing suppliers objectively and selecting the most suitable ones. It's crucial to remember that procurement is not just about finding the lowest price but about establishing long-term, mutually beneficial relationships with suppliers. Effective supplier relationship management can lead to improved quality, innovation, and cost savings over time. Additionally, organizations should consider the benefits of supplier diversity, which can bring fresh perspectives, enhance innovation, and contribute to corporate social responsibility goals. By carefully evaluating and selecting suppliers, organizations can build a robust and reliable supply chain that supports their business objectives.

Step 3: Negotiate contracts and agreements

After selecting potential suppliers, the next critical step is negotiating contracts and agreements. This phase is crucial for establishing clear expectations, protecting the organization's interests, and securing favorable terms. Strong contract terms should cover all aspects of the procurement relationship, including pricing, delivery schedules, quality standards, warranties, and dispute resolution procedures. Effective negotiation strategies involve thorough preparation, understanding the supplier's position, and identifying areas for mutual benefit. It's often beneficial to involve legal counsel in contract review to ensure all terms are legally sound and protect the organization from potential risks. Clear and unambiguous contract language is essential to prevent misunderstandings and disputes down the line. Well-negotiated contracts not only secure better value for the organization but also lay the groundwork for positive, long-term supplier relationships.

Step 4: Create purchase orders for selected goods and services

Once contracts are in place, the next step is to create purchase orders for the selected goods and services. Effective purchase order management is a cornerstone of successful procurement. A purchase order is a formal document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It serves as a legally binding document and helps both parties avoid misunderstandings about the transaction. Key information in a purchase order typically includes detailed item descriptions, quantities, prices, delivery terms, and payment conditions. Implementing a robust purchase order approval process ensures that all purchases align with organizational policies and budgets. This step in the procurement process provides a clear record of the transaction, facilitates tracking and reporting, and serves as a critical reference point for receiving and payment processes. Proper purchase order management improves the entire procurement cycle, enhancing transparency and control over spending.

Step 5: Receive and inspect the delivered goods or services

After the purchase order is fulfilled, the next crucial step is receiving and inspecting the delivered goods or services. This phase is critical for ensuring that what was ordered matches what was received in terms of quantity, quality, and specifications. Implementing thorough inspection processes and quality control measures helps identify any discrepancies or issues early on. This might involve visual inspections, functional tests, or more complex quality assurance procedures depending on the nature of the goods or services. Proper documentation is essential at this stage, including delivery receipts and detailed inspection reports. These records serve multiple purposes: they provide evidence for payment processing, support inventory management, and can be crucial in case of disputes or returns. By maintaining rigorous receiving and inspection procedures, organizations can ensure they get the value they paid for and maintain high standards in their supply chain.

Step 6: Maintain meticulous invoicing and payment records

Step 7: optimize the procurement process.

Continuous optimization of the procurement process is essential for maintaining efficiency and effectiveness in a dynamic business environment. Process optimization involves identifying and eliminating bottlenecks, optimizing workflows, and leveraging technology to enhance productivity. Organizations can use various methods to identify areas for improvement, such as process mapping, data analysis, and feedback from stakeholders. Data analysis plays a crucial role in optimization efforts, providing insights into spending patterns, supplier performance, and process efficiency. Implementing continuous improvement initiatives, such as Lean or Six Sigma methodologies, can drive ongoing enhancements to the procurement process. By regularly reviewing and optimizing their procurement processes, organizations can reduce costs, improve supplier relationships, and enhance their overall competitive position.

Step 8: Automate workflows and documentation

Automation is increasingly becoming a key factor in efficient procurement processes. By automating workflows and documentation, organizations can significantly reduce manual errors, speed up processes, and free up staff for more strategic tasks. This is where solutions like Brex can play a vital role in transforming procurement operations. Brex offers a spend management software solution that transforms how organizations handle their procurement processes. From expense management to bill payments, Brex's solution simplifies and accelerates operations. The platform automates purchase approvals, automates receipt matching, and provides real-time visibility into company spending. With Brex corporate cards , you can issue purchase cards for procurement use cases like operational spend — with preset, auto-enforced controls. For accounts payable automation , Brex automates invoice processing and payment scheduling, significantly reducing time spent on routine tasks. The platform's robust reporting and analytics tools offer valuable insights into spending patterns, empowering organizations to make data-driven decisions. Importantly, Brex prioritizes security with bank-grade encryption and compliance with industry standards, ensuring the protection of sensitive procurement information. By leveraging Brex's automation capabilities, businesses can boost efficiency, accuracy, and compliance throughout their procurement processes, ultimately driving improved financial outcomes and maintaining a competitive edge in the market.

Step 9: Centralize data and information

The final step in optimizing the procurement process is centralizing data and information. A centralized procurement strategy serves as a single source of truth for all procurement-related data, from supplier information to purchase histories and contract details. This centralization offers numerous benefits, including improved data accuracy, easier reporting, and better visibility into overall procurement activities. It also facilitates more effective data analytics, enabling procurement teams to identify trends, forecast needs, and make data-driven decisions. By centralizing procurement data, organizations can enhance collaboration across departments, improve spend analysis capabilities, and ultimately drive more strategic procurement decisions that align with broader organizational goals.

Optimizing procurement processes is important for organizations seeking to enhance efficiency, reduce costs, and drive strategic value. By implementing the following eight strategies, companies can transform their procurement functions from operational necessities into powerful drivers of business success.

Standardize and automate processes

Standardization and automation are key to improving efficiency in procurement. By creating uniform procedures for requisitions, approvals, and purchasing, organizations can reduce errors and processing time. Implementing e-procurement software can automate many routine tasks, such as purchase order creation and invoice matching. This not only speeds up the process but also provides better visibility into spending patterns and supplier performance. Automated workflows can route approvals to the right people, reducing bottlenecks and ensuring compliance with company policies. By reducing manual intervention, standardization and automation also minimize the risk of human error and fraud.

Implement strategic sourcing

Strategic sourcing elevates the procurement process above simply finding the lowest price for goods and services. It involves a holistic approach to supplier selection and management, focusing on long-term value rather than short-term cost savings. This method includes analyzing spend categories, assessing supplier capabilities, and developing relationships with key vendors. By implementing strategic sourcing, organizations can reduce total cost of ownership, improve quality, and mitigate supply chain risks. It also allows for better alignment of procurement activities with overall business objectives. Regular market analysis and supplier performance evaluations are integral parts of this approach, ensuring that the organization always has access to the best resources at optimal terms.

Address tail spend management

Tail spend often follows a pattern similar to the Pareto principle, where approximately 20% of a company's total procurement spend is distributed across roughly 80% of its suppliers. These numbers are not exact for every company but represent a common pattern observed in procurement analytics. This spending area, involving numerous small purchases from many different suppliers, is often challenging to manage due to its fragmented nature. Implementing effective tail spend management can yield significant cost savings and reduce operational risks. By analyzing and consolidating tail spend, organizations can identify opportunities for bulk purchasing, negotiate better terms with suppliers, and eliminate maverick spending. Utilizing e-procurement platforms and spend analysis tools can help categorize and track tail spend more effectively. This approach not only reduces costs but also improves supplier relationships and enhances overall procurement efficiency.

Enhance supplier relationship management

Building strong, collaborative relationships with suppliers is essential for optimizing procurement processes. Effective supplier relationship management (SRM) transforms transactional interactions into strategic partnerships that drive mutual benefit. This involves regular communication, performance reviews, and joint problem-solving initiatives. By fostering good supplier relationships, organizations can negotiate better terms, receive priority service, and gain early access to innovations. SRM also helps in managing supply chain risks by improving transparency and trust. Implementing a formal SRM program can lead to reduced costs, improved quality, and increased reliability in the supply chain.

Leverage data analytics

Data analytics can transform procurement from a reactive to a proactive function. By analyzing historical purchasing data, market trends, and supplier performance metrics, organizations can make more informed decisions. Predictive analytics can help forecast demand, optimize inventory levels, and identify potential supply chain disruptions before they occur. Spend analysis tools can uncover opportunities for consolidation and cost reduction. By leveraging data analytics, procurement teams can move from simply executing transactions to providing strategic insights that drive business value. This data-driven approach also supports continuous improvement efforts by identifying areas of inefficiency and tracking the impact of process changes.

Focus on total cost of ownership

Shifting focus from purchase price to total cost of ownership (TCO) is a key strategy in optimizing procurement. TCO takes into account not just the initial purchase price of goods or services, but also factors like maintenance costs, longevity, ease of use, and disposal costs. By considering TCO, organizations can make more holistic decisions that provide better value in the long run. This approach often leads to selecting higher quality products or services that, while potentially more expensive upfront, result in lower overall costs over time. Implementing a TCO mindset requires collaboration across departments and a willingness to prioritize long-term value creation over immediate budget constraints.

Invest in procurement training and development

Continuous training and development of procurement staff is essential for process optimization. As procurement becomes more strategic, professionals need to develop a broader skill set that includes negotiation, data analysis, risk management, and strategic thinking. Investing in training programs can improve the efficiency and effectiveness of procurement operations. This could include formal education, industry certifications, or in-house training sessions. By enhancing the skills of procurement staff, organizations can better leverage technology, implement best practices, and drive innovation in procurement processes. A well-trained procurement team is better equipped to navigate complex supplier relationships, identify cost-saving opportunities, and align procurement activities with overall business strategy.

Implement continuous improvement methodologies

Adopting continuous improvement methodologies like Lean or Six Sigma can significantly enhance procurement processes. These approaches focus on eliminating waste, reducing variability, and increasing efficiency. By regularly reviewing and refining procurement processes, organizations can identify bottlenecks, streamline workflows, and improve overall performance. This might involve mapping out current processes, identifying pain points, and implementing targeted improvements. Key performance indicators (KPIs) should be established to measure the impact of changes and guide future improvements. A culture of continuous improvement encourages procurement teams to constantly seek out ways to enhance efficiency, reduce costs, and add value to the organization. This ongoing commitment to optimization ensures that procurement processes remain effective and aligned with evolving business needs.

These optimization strategies require commitment, resources, and a willingness to embrace change. However, the potential benefits - including cost savings, improved supplier relationships, and enhanced strategic positioning - make the effort well worthwhile for forward-thinking organizations.

Brex revolutionizes procurement processes with its suite of tools, designed to enhance operations and boost efficiency. At its core, Brex's spend management software automates expense management by integrating corporate cards with smart technology that categorizes transactions automatically. This eliminates tedious data entry and reduces errors, freeing up valuable time for your team. The platform also provides real-time insights into company spending, empowering procurement teams to make quick, informed decisions and adjust strategies on the fly.

In addition to expense management, Brex tackles other key procurement challenges with its accounting automation software . Its customizable approval workflows ensure thorough vetting of purchases without causing delays, while automated invoice processing and payment scheduling simplify accounts payable tasks. Robust analytics tools dive deep into spending patterns, uncovering cost-saving opportunities and optimizing supplier relationships. The platform's accounting automation capabilities streamline financial processes, reducing manual work and improving accuracy. All of this is underpinned by bank-grade security measures, protecting your sensitive procurement data and ensuring compliance with financial regulations. With Brex's integrated approach to procurement and accounting, businesses can achieve greater efficiency and control over their financial operations.

By centralizing procurement data alongside all other company spend, Brex creates a single source of truth that improves accuracy and fosters collaboration across departments. The mobile app adds flexibility, allowing for on-the-go expense management and approvals. In essence, Brex transforms procurement into a data-driven powerhouse, leading to better financial outcomes and a sharper competitive edge. With Brex, organizations can turn their procurement function from a necessary cost center into a strategic asset driving business success.

Well, there you have it—the ins and outs of turning your procurement process from a necessary headache into a strategic superpower. We've journeyed through the procurement landscape, from the nitty-gritty of needs assessment to the high-tech world of automation and analytics. And speaking of high-tech solutions, let's not forget how Brex can improve your procurement process. With its smart spend management, real-time spending insights, and automated workflows, Brex can help you slash processing times, boost accuracy, and gain a bird's-eye view of your spending patterns.

Remember, great procurement isn't just about pinching pennies—it's about building smart partnerships, leveraging data like a pro, and staying nimble in a fast-changing business world. Whether you're implementing a new supplier diversity program, diving into total cost of ownership analysis, or exploring how Brex can supercharge your operations, the key is to keep pushing forward. Ready to see Brex in action? Don't just take our word for it— sign up for a demo and experience firsthand how it can transform your procurement process. Your bottom line will thank you, and you'll wonder how you ever managed without it. So go ahead, take these insights, book that demo, and show the business world what strategic procurement really looks like!

@media(min-width: 1024px){.css-hqxvux{max-width:100%;}} See what Brex can do for you.

Learn how our spend platform can increase the strategic impact of your finance team and future-proof your company.

The Procurement Team’s Guide to Tail Spend Management

Transform your procurement strategy with effective tail spend management. Our guide shows you how to plug spending leaks and boost your bottom line.

Purchase Order Management Essentials For Procurement Teams

Implementing an efficient purchase order management process offers numerous benefits to businesses. Learn how to optimize your procurement process, control costs, and boost profitability.

Contracts & Legal

Definition: A Request for Information (RFI) is a solicitation document used for market research to obtain general information from suppliers about their products, services, and capabilities.

Purpose of a Request for Information (RFI)

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How To Conduct Market Research For Procurement

What does procurement mean in the business world? To understand the importance of procurement market intelligence , we need to analyze procurement first. This deals with getting goods or products, usually for businesses. It is often linked to large companies rather than individuals because it involves getting or obtaining goods on a large scale, and it can also include services. Generally, it can apply the whole process of getting the goods or just the final act that leads to the purchase.

These processes require a lot of the company’s resources to work smoothly. During the show of acquiring the goods, a set budget is given to the managers dealing with obtaining the company’s required goods or services. Since a successful procurement will lead to better profit for the company, it is crucial for its strategy.

The process begins by preparing to get the demand until the final stage of getting the payment receipt and approval. Therefore all steps of preparation, determination, research of the dealer, financing, and inventory are the components of the entire procurement process.

How Is Successful Procurement Market Research Done?

Market analysis is done to make sound decisions during acquiring goods and services for the company. It involves carrying out an in-depth analysis of the relative opportunities and risks while procuring goods. Even though some of the risks are not avoidable altogether, this strategy can involve transparency. Any future drawback will have an effective treatment.

Studies show that before issuing the contract if in-depth market research can be set up, as a result, it can save a lot of time and effort. There are some guidelines to follow before you can procure significant market research, which will help you in the longer run.

Market research is a useful tool for users. It keeps them up-to-date with the current market knowledge, reveals popular new trends, gives more innovative ideas, and brings potential light suppliers that you would not have known otherwise before conducting the research. But perhaps the most important reason of all is that it gives an in-depth review of the information.

For example, some businesses have been spending lots of money acquiring new software for their companies, when the only thing needed was updating the software. So, before businesses spend millions, an effective conducting of market research can help achieve more in less. Applying procurement market intelligence increases the effectiveness of the whole process.

How Can It Be Made Easier?

Organizations need to comprehend their current standing before they decide to get goods or services. In case the researching method seems too time-consuming, then the involvement of a third party can help achieve the same goals. You will gather information on the current market trends, save time and effort, and make better decisions.

Following all the required and necessary are important for procurement market intelligence. One can hire a company that gets or already has an in-depth knowledge of your business and its current standing. It is even better to get one with prior experience because it enables them to know the suppliers better, the strengths and relative faults of the available goods.

Furthermore, they also tend to have better bargaining power on the market. This company can lay out the plan for you and arrange demos that you can consider according to your needs. If you want to lessen the cost of procurement, you should go with the legislative laws before dealing with the process so there is no disruption and the entire process runs smoothly.

Conducting Market Research Conclusion

Market assessment for procurement is essential when you need to outline your specific requirements and get them while ensuring that they are not complex to get and go easy on the budget. There are many ways through which in-depth market research can be done. Through the help of potential suppliers, relative consultants, and even some service providers, it can be done through the internet.

Some companies even hire other companies to carry out market research for the entire procurement procedure’s full length to save time and effort. When this process is being done, all relevant information can be recorded for any future procurement acts. All in all, this is a handy tool that makes efficient decisions for your specific business.

Additional factors that will help you to finalize the contract with the supplier are bargaining power, added value, after-sales services, brand identity, product life cycle , the price per volume, and so on. Now that you understand the importance of conducting market research for procurement finalizing contracts with suppliers will be much easier for you.

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Enhancing supply chain resilience through market research.

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Amaan Kazi is the CEO of Verified Market Research , a global market research & consulting firm focused on niche & emerging markets.

Before making a significant purchase, we often research extensively in the hopes of avoiding disappointment. Similarly, businesses can engage in thorough market research to enhance their supply chain resilience.

Let's delve into how various industries can fortify their supply chains through innovative strategies and market research.

The Role Of Market Research In Modern Supply Chains

Despite being the backbone of commerce and industry, the supply chain's complex nature also makes it vulnerable to disruptions—from natural disasters and geopolitical tensions to pandemics and cyber attacks.

Market research provides a detailed understanding of market conditions, including potential risks and emerging trends. This knowledge can help businesses anticipate disruptions, adapt to changing circumstances and implement strategies that enhance the resilience and efficiency of their supply chains.

From my experience leading a global market research and consulting firm, here is how I see five supply-chain-dependent industries using market research to tackle challenges and implement innovative solutions.

1. Automotive And Transportation

The automotive industry continues to face supply chain disruptions due to geopolitical tensions, semiconductor shortages and the shift toward electric vehicles (EVs). Ways to help mitigate include:

• Digital twins: Digital twins create virtual replicas of supply chains, enabling companies to simulate scenarios and optimize operations, thus identifying bottlenecks and improving efficiency.

• Flexible supply chains: Flexible supply chain models let automotive companies dynamically adjust production and inventory levels, swiftly responding to market changes and minimizing disruptions.

These strategies allow for real-time adjustments and predictive analysis, which I see as especially critical for the highly volatile automotive sector.

2. Electronics And Semiconductors

The electronics and semiconductor industries are also grappling with supply chain complexities due to rapid technological advancements and global demand surges. Some innovative solutions for this sector include:

• AI and robotics: AI-driven forecasting and robotic automation streamline production, enhance accuracy, improve worker safety and facilitate efficient inventory management and order fulfillment.

• Cybersecurity: As supply chains become more digitized, cybersecurity measures become crucial to protecting against cyber threats and ensuring the integrity of digital assets.

Pro-Tip: Start with small-scale pilot projects, gradually scaling up your investments in AI software and robotics while ensuring robust cybersecurity protocols.

3. Pharmaceuticals

The pharmaceutical industry is heavily regulated, with stringent requirements for product quality and traceability. The Covid-19 pandemic highlighted the vulnerability of global supply chains to sudden disruptions; however, it also highlighted some innovative solutions for the future of pharmaceuticals.

• Blockchain for traceability: Blockchain technology ensures the authenticity and traceability of pharmaceutical products, combating counterfeit drugs and improving transparency. Traceability tracks the origin and movement of products, while visibility provides an overall view of the supply chain's current status.

• AI and predictive analytics: AI-driven predictive analytics helps enhance demand forecasting and inventory management, ensuring that critical drugs are available when needed without overstocking. While similar in aims to AI and robotics, predictive analytics focuses on forecasting and optimizing inventory, whereas robotics automates physical tasks, which in turn improves efficiency and accuracy.

4. Food And Beverages

The food and beverage sector faces numerous challenges (download required), including climate change, fluctuating consumer demands and logistical disruptions. There are a couple of potential solutions for those in this industry to employ.

• Digital agriculture: IoT and AI in agriculture enable precision farming, optimizing resource use and increasing yields by providing real-time data on soil health, weather and crop growth. Start by deploying IoT sensors for real-time data collection and invest in AI platforms to analyze the data for actionable insights.

• Supply chain visibility: Those in fast-moving consumer goods can use visibility tools to track products from farm to shelf, ensuring quality, reducing waste and providing a comprehensive understanding of the supply chain.

Retailers also face supply chain challenges due to shifts in consumer demand, logistical disruptions and the need for rapid replenishment cycles. Some ways to use market research to strengthen supply chains for retail include:

• Omni-channel logistics: Many retailers are integrating omnichannel logistics to help create a more seamless shopping experience, improve inventory management and meet customer expectations. I recommend you begin by integrating online and offline inventory systems, ensuring consistent data flow and training staff for new methods of operation.

• Data-driven decision making: By leveraging big data and analytics, retailers can better predict consumer demand, optimize inventory levels and streamline supply chain operations .

When employing data-driven decision making, make sure to focus on predicting consumer trends, optimizing stock levels and enhancing customer satisfaction.

How Research Can Lead To A Strong Supply Chain Network

Last year, one of my clients (a major automotive component manufacturer) sought my firm's expertise to strengthen its supply chain network across the Middle East and Asia Pacific markets.

Our research highlighted potential risks and opportunities, identifying reliable suppliers, optimal logistics routes and key market trends. Armed with this information, the client was better able to forge partnerships with local suppliers, streamline their logistics operations and implement robust risk management practices.

This allowed the manufacturer to establish a supply chain network that could both meet the demands of their production schedules and adapt swiftly to market changes. I believe this type of success story underscores the pivotal role of market research in enhancing supply chain resilience and securing a competitive advantage.

Steps To Building A Resilient Supply Chain

No matter your industry, to help build a resilient supply chain, consider the following steps before seeking external market research assistance.

1. Conduct geopolitical, environmental and market risk assessments.

2. Leverage technology to monitor and optimize supply chain operations.

3. Integrate software for end-to-end supply chain visibility and transparency.

4. Foster strategic partnerships to strengthen supply chain networks.

5. Adopt environmentally and operationally sustainable practices.

6. Stay informed of developments, be agile and be ready to adapt.

Just as an architect meticulously plans and assesses every aspect of a building before construction, businesses can apply the same rigor to fortify their supply chains. Market research is the blueprint that can provide critical insights toward a robust and resilient supply chain framework.

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9 Best Marketing Research Methods to Know Your Buyer Better [+ Examples]

Published: August 08, 2024

One of the most underrated skills you can have as a marketer is marketing research — which is great news for this unapologetic cyber sleuth.

marketer using marketer research methods to better understand her buyer personas

From brand design and product development to buyer personas and competitive analysis, I’ve researched a number of initiatives in my decade-long marketing career.

And let me tell you: having the right marketing research methods in your toolbox is a must.

Market research is the secret to crafting a strategy that will truly help you accomplish your goals. The good news is there is no shortage of options.

How to Choose a Marketing Research Method

Thanks to the Internet, we have more marketing research (or market research) methods at our fingertips than ever, but they’re not all created equal. Let’s quickly go over how to choose the right one.

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1. Identify your objective.

What are you researching? Do you need to understand your audience better? How about your competition? Or maybe you want to know more about your customer’s feelings about a specific product.

Before starting your research, take some time to identify precisely what you’re looking for. This could be a goal you want to reach, a problem you need to solve, or a question you need to answer.

For example, an objective may be as foundational as understanding your ideal customer better to create new buyer personas for your marketing agency (pause for flashbacks to my former life).

Or if you’re an organic sode company, it could be trying to learn what flavors people are craving.

2. Determine what type of data and research you need.

Next, determine what data type will best answer the problems or questions you identified. There are primarily two types: qualitative and quantitative. (Sound familiar, right?)

Qualitative Data is non-numerical information, like subjective characteristics, opinions, and feelings. It’s pretty open to interpretation and descriptive, but it’s also harder to measure. This type of data can be collected through interviews, observations, and open-ended questions.
Quantitative Data , on the other hand, is numerical information, such as quantities, sizes, amounts, or percentages. It’s measurable and usually pretty hard to argue with, coming from a reputable source. It can be derived through surveys, experiments, or statistical analysis.

Understanding the differences between qualitative and quantitative data will help you pinpoint which research methods will yield the desired results.

For instance, thinking of our earlier examples, qualitative data would usually be best suited for buyer personas, while quantitative data is more useful for the soda flavors.

However, truth be told, the two really work together.

Qualitative conclusions are usually drawn from quantitative, numerical data. So, you’ll likely need both to get the complete picture of your subject.

For example, if your quantitative data says 70% of people are Team Black and only 30% are Team Green — Shout out to my fellow House of the Dragon fans — your qualitative data will say people support Black more than Green.

(As they should.)

Primary Research vs Secondary Research

You’ll also want to understand the difference between primary and secondary research.

Primary research involves collecting new, original data directly from the source (say, your target market). In other words, it’s information gathered first-hand that wasn’t found elsewhere.

Some examples include conducting experiments, surveys, interviews, observations, or focus groups.

Meanwhile, secondary research is the analysis and interpretation of existing data collected from others. Think of this like what we used to do for school projects: We would read a book, scour the internet, or pull insights from others to work from.

So, which is better?

Personally, I say any research is good research, but if you have the time and resources, primary research is hard to top. With it, you don’t have to worry about your source's credibility or how relevant it is to your specific objective.

You are in full control and best equipped to get the reliable information you need.

3. Put it all together.

Once you know your objective and what kind of data you want, you’re ready to select your marketing research method.

For instance, let’s say you’re a restaurant trying to see how attendees felt about the Speed Dating event you hosted last week.

You shouldn’t run a field experiment or download a third-party report on speed dating events; those would be useless to you. You need to conduct a survey that allows you to ask pointed questions about the event.

This would yield both qualitative and quantitative data you can use to improve and bring together more love birds next time around.

Best Market Research Methods for 2024

Now that you know what you’re looking for in a marketing research method, let’s dive into the best options.

Note: According to HubSpot’s 2024 State of Marketing report, understanding customers and their needs is one of the biggest challenges facing marketers today. The options we discuss are great consumer research methodologies , but they can also be used for other areas.

Primary Research

1. interviews.

Interviews are a form of primary research where you ask people specific questions about a topic or theme. They typically deliver qualitative information.

I’ve conducted many interviews for marketing purposes, but I’ve also done many for journalistic purposes, like this profile on comedian Zarna Garg . There’s no better way to gather candid, open-ended insights in my book, but that doesn’t mean they’re a cure-all.

What I like: Real-time conversations allow you to ask different questions if you’re not getting the information you need. They also push interviewees to respond quickly, which can result in more authentic answers.

What I dislike: They can be time-consuming and harder to measure (read: get quantitative data) unless you ask pointed yes or no questions.

Best for: Creating buyer personas or getting feedback on customer experience, a product, or content.

2. Focus Groups

Focus groups are similar to conducting interviews but on a larger scale.

In marketing and business, this typically means getting a small group together in a room (or Zoom), asking them questions about various topics you are researching. You record and/or observe their responses to then take action.

They are ideal for collecting long-form, open-ended feedback, and subjective opinions.

One well-known focus group you may remember was run by Domino’s Pizza in 2009 .

After poor ratings and dropping over $100 million in revenue, the brand conducted focus groups with real customers to learn where they could have done better.

It was met with comments like “worst excuse for pizza I’ve ever had” and “the crust tastes like cardboard.” But rather than running from the tough love, it took the hit and completely overhauled its recipes.

The team admitted their missteps and returned to the market with better food and a campaign detailing their “Pizza Turn Around.”

The result? The brand won a ton of praise for its willingness to take feedback, efforts to do right by its consumers, and clever campaign. But, most importantly, revenue for Domino’s rose by 14.3% over the previous year.

The brand continues to conduct focus groups and share real footage from them in its promotion:

What I like: Similar to interviewing, you can dig deeper and pivot as needed due to the real-time nature. They’re personal and detailed.

What I dislike: Once again, they can be time-consuming and make it difficult to get quantitative data. There is also a chance some participants may overshadow others.

Best for: Product research or development

Pro tip: Need help planning your focus group? Our free Market Research Kit includes a handy template to start organizing your thoughts in addition to a SWOT Analysis Template, Survey Template, Focus Group Template, Presentation Template, Five Forces Industry Analysis Template, and an instructional guide for all of them. Download yours here now.

3. Surveys or Polls

Surveys are a form of primary research where individuals are asked a collection of questions. It can take many different forms.

They could be in person, over the phone or video call, by email, via an online form, or even on social media. Questions can be also open-ended or closed to deliver qualitative or quantitative information.

A great example of a close-ended survey is HubSpot’s annual State of Marketing .

In the State of Marketing, HubSpot asks marketing professionals from around the world a series of multiple-choice questions to gather data on the state of the marketing industry and to identify trends.

The survey covers various topics related to marketing strategies, tactics, tools, and challenges that marketers face. It aims to provide benchmarks to help you make informed decisions about your marketing.

It also helps us understand where our customers’ heads are so we can better evolve our products to meet their needs.

Apple is no stranger to surveys, either.

In 2011, the tech giant launched Apple Customer Pulse , which it described as “an online community of Apple product users who provide input on a variety of subjects and issues concerning Apple.”

Screenshot of Apple’s Consumer Pulse Website from 2011.

"For example, we did a large voluntary survey of email subscribers and top readers a few years back."

While these readers gave us a long list of topics, formats, or content types they wanted to see, they sometimes engaged more with content types they didn’t select or favor as much on the surveys when we ran follow-up ‘in the wild’ tests, like A/B testing.”

Pepsi saw similar results when it ran its iconic field experiment, “The Pepsi Challenge” for the first time in 1975.

The beverage brand set up tables at malls, beaches, and other public locations and ran a blindfolded taste test. Shoppers were given two cups of soda, one containing Pepsi, the other Coca-Cola (Pepsi’s biggest competitor). They were then asked to taste both and report which they preferred.

People overwhelmingly preferred Pepsi, and the brand has repeated the experiment multiple times over the years to the same results.

What I like: It yields qualitative and quantitative data and can make for engaging marketing content, especially in the digital age.

What I dislike: It can be very time-consuming. And, if you’re not careful, there is a high risk for scientific error.

Best for: Product testing and competitive analysis

Pro tip: " Don’t make critical business decisions off of just one data set," advises Pamela Bump. "Use the survey, competitive intelligence, external data, or even a focus group to give you one layer of ideas or a short-list for improvements or solutions to test. Then gather your own fresh data to test in an experiment or trial and better refine your data-backed strategy."

Secondary Research

8. public domain or third-party research.

While original data is always a plus, there are plenty of external resources you can access online and even at a library when you’re limited on time or resources.

Some reputable resources you can use include:

Pew Research Center
McKinley Global Institute
Relevant Global or Government Organizations (i.e United Nations or NASA)

It’s also smart to turn to reputable organizations that are specific to your industry or field. For instance, if you’re a gardening or landscaping company, you may want to pull statistics from the Environmental Protection Agency (EPA).

If you’re a digital marketing agency, you could look to Google Research or HubSpot Research . (Hey, I know them!)

What I like: You can save time on gathering data and spend more time on analyzing. You can also rest assured the data is from a source you trust.

What I dislike: You may not find data specific to your needs.

Best for: Companies under a time or resource crunch, adding factual support to content

Pro tip: Fellow HubSpotter Iskiev suggests using third-party data to inspire your original research. “Sometimes, I use public third-party data for ideas and inspiration. Once I have written my survey and gotten all my ideas out, I read similar reports from other sources and usually end up with useful additions for my own research.”

9. Buy Research

If the data you need isn’t available publicly and you can’t do your own market research, you can also buy some. There are many reputable analytics companies that offer subscriptions to access their data. Statista is one of my favorites, but there’s also Euromonitor , Mintel , and BCC Research .

What I like: Same as public domain research

What I dislike: You may not find data specific to your needs. It also adds to your expenses.

Best for: Companies under a time or resource crunch or adding factual support to content

Which marketing research method should you use?

You’re not going to like my answer, but “it depends.” The best marketing research method for you will depend on your objective and data needs, but also your budget and timeline.

My advice? Aim for a mix of quantitative and qualitative data. If you can do your own original research, awesome. But if not, don’t beat yourself up. Lean into free or low-cost tools . You could do primary research for qualitative data, then tap public sources for quantitative data. Or perhaps the reverse is best for you.

Whatever your marketing research method mix, take the time to think it through and ensure you’re left with information that will truly help you achieve your goals.

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Procurement Outsourcing Market to Reach $16.1 Billion, Globally, by 2032 at 11% CAGR: Allied Market Research

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Aug 16, 2024, 05:01 ET

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The global procurement outsourcing market has grown due to several factors such as technological advancements and rise in need for advanced efficiency & productivity.

NEW CASTLE, Del. , Aug. 16, 2024 /PRNewswire/ -- Allied Market Research published a report, titled, " Procurement Outsourcing Market by Component (Solution, and Service), Deployment (On-premise, and Cloud), Organization Size (Small and Medium-sized Enterprises (SMEs), and Large Enterprises), and Industry Vertical (Banking Financial Services & Insurance (BFSI), Healthcare, and IT & Telecommunication): Global Opportunity Analysis and Industry Forecast, 2024-2032". According to the report, the procurement outsourcing market was valued at $6.4 billion in 2023, and is estimated to reach $16.1 billion by 2032, growing at a CAGR of 11% from 2024 to 2032.

Prime determinants of growth

The global procurement outsourcing market has grown due to several factors such as technological advancements and rise in need for advanced efficiency & productivity. However, loss of control & visibility and data security & privacy act as restraints for the procurement outsourcing market. In addition, the surge in demand for strategic sourcing and category management are expected to provide ample opportunities for market growth during the forecast period.

Request Sample Pages: https://www.alliedmarketresearch.com/request-sample/A14633

Report coverage & details:

Report Coverage	Details
Forecast Period	2024–2032
Base Year	2023
Market Size in 2023	$6.4 Billion
Market Size in 2032	$16.1 Billion
CAGR	11.0 %
No. of Pages in Report	400
Segments Covered	Component, Deployment, Organization Size, Industry Vertical, and Region.
Drivers
Opportunity
Restraints

Buy this Complete Report (303 Pages PDF with Insights, Charts, Tables, and Figures) at: https://www.alliedmarketresearch.com/procurement-outsourcing-market/purchase-options

The solution segment is expected to grow faster throughout the forecast period.

By component, the solution segment held the highest market share in 2023, as organizations are increasingly outsourcing their procurement activities to specialized service providers to optimize costs, improve efficiency, and enhance their focus on core business operations.

The cloud segment is expected to grow faster throughout the forecast period.

By deployment, the cloud segment held the highest market share in 2023. This is attributed to its inherent benefits, such as scalability, flexibility, cost-effectiveness, and ease of implementation. Cloud-based solutions enable organizations to access procurement services and data seamlessly, anytime, and anywhere, using any device, providing convenience and accessibility.

The large enterprises segment is expected to grow faster throughout the forecast period.

By organization size, the large enterprises segment held the highest market share in 2023. As large enterprises typically have more complex procurement needs, higher transaction volumes, and larger budgets, outsourcing is a more viable option for them. Large enterprises often have diverse supplier networks, operations, and the need for specialized procurement expertise.

The BFSI segment is expected to grow faster throughout the forecast period.

By industry vertical, the BFSI segment held the highest market share in 2023. The dominance of the banking, financial services, and insurance (BFSI) segment in the procurement outsourcing market is driven by its complex procurement requirements, such as regulatory compliance, risk management, and cost optimization. The BFSI industry relies on robust procurement solutions to address these specific needs.

North America to maintain its dominance by 2032

By region, North America held the highest market share in terms of revenue in 2023 and is expected to boost in terms of revenue throughout the forecast period. The market for outsourcing services in North America is expanding as a result of the escalating technical breakthroughs and digital transformations occurring across several business verticals, including telecommunications, IT, retail, and finance.

Enquiry Before Buying: https://www.alliedmarketresearch.com/purchase-enquiry/A14633

Major Industry Players: -

Accenture
IBM Corporation
Infosys
Capgemini
Genpact
Wipro Limited
HCL Technologies Limited
Tata Consultancy Services.

The report provides a detailed analysis of these key players in the global procurement outsourcing market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

Recent Industry Development:

In February 2024 , Genpact partnered with ServiceNow, to deliver Source-to-Pay applications across finance and supply chain operations. The Genpact Source-to-Pay offering uses ServiceNow AI capabilities to help accelerate team productivity, simplify the user experience, and increase cost efficiency.
In September 2022 , GEP expanded its services by the opening of a new office in Abu Dhabi . The firm's newest office provides a full range of procurement and supply chain consulting services and the industry's leading procurement software platform.
In October 2021 , Accenture acquired Xoomworks Group, a consulting and technology company that specializes in procurement technology, digital innovation, and software solutions development. The acquisition is expected to expand Accenture's capabilities for helping clients accelerate technology-led business and procurement transformation.

AVENUE- A Subscription-Based Library (Premium on-demand, subscription-based pricing model):

AMR introduces its online premium subscription-based library Avenue, designed specifically to offer cost-effective, one-stop solution for enterprises, investors, and universities. With Avenue, subscribers can avail an entire repository of reports on more than 2,000 niche industries and more than 12,000 company profiles. Moreover, users can get an online access to quantitative and qualitative data in PDF and Excel formats along with analyst support, customization, and updated versions of reports.

Get an access to the library of reports at any time from any device and anywhere. For more details, follow the link: https://www.alliedmarketresearch.com/library-access

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware . Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

Contact: David Correa 1209 Orange Street, Corporation Trust Center, Wilmington , New Castle , Delaware 19801 USA. Int'l: +1-503-894-6022 Toll Free: +1-800-792-5285 UK: +44-845-528-1300 India ( Pune ): +91-20-66346060 Fax: +1-800-792-5285 [email protected]

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SOURCE Allied Market Research

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Procurement Outsourcing Market to Reach $16.1 Billion, Globally, by 2032 at 11% CAGR: Allied Market Research

The global procurement outsourcing market has grown due to several factors such as technological advancements and rise in need for advanced efficiency & productivity.

NEW CASTLE, Del., Aug. 16, 2024 /PRNewswire/ -- Allied Market Research published a report, titled, "Procurement Outsourcing Market by Component (Solution, and Service), Deployment (On-premise, and Cloud), Organization Size (Small and Medium-sized Enterprises (SMEs), and Large Enterprises), and Industry Vertical (Banking Financial Services & Insurance (BFSI), Healthcare, and IT & Telecommunication): Global Opportunity Analysis and Industry Forecast, 2024-2032". According to the report, the procurement outsourcing market was valued at $6.4 billion in 2023, and is estimated to reach $16.1 billion by 2032, growing at a CAGR of 11% from 2024 to 2032.

Prime determinants of growth

Request Sample Pages: https://www.alliedmarketresearch.com/request-sample/A14633

Report coverage & details:

Report Coverage	Details
Forecast Period	2024-2032
Base Year	2023
Market Size in 2023	$6.4 Billion
Market Size in 2032	$16.1 Billion
CAGR	11.0 %
No. of Pages in Report	400
Segments Covered	Component, Deployment, Organization Size, Industry Vertical, and Region.
Drivers
Opportunity
Restraints

Buy this Complete Report (303 Pages PDF with Insights, Charts, Tables, and Figures) at: https://www.alliedmarketresearch.com/procurement-outsourcing-market/purchase-options

The solution segment is expected to grow faster throughout the forecast period.

The cloud segment is expected to grow faster throughout the forecast period.

The large enterprises segment is expected to grow faster throughout the forecast period.

The BFSI segment is expected to grow faster throughout the forecast period.

North America to maintain its dominance by 2032

Enquiry Before Buying: https://www.alliedmarketresearch.com/purchase-enquiry/A14633

Major Industry Players: -

IBM Corporation
Wipro Limited
HCL Technologies Limited
Tata Consultancy Services.

Recent Industry Development:

In February 2024, Genpact partnered with ServiceNow, to deliver Source-to-Pay applications across finance and supply chain operations. The Genpact Source-to-Pay offering uses ServiceNow AI capabilities to help accelerate team productivity, simplify the user experience, and increase cost efficiency.
In September 2022, GEP expanded its services by the opening of a new office in Abu Dhabi. The firm's newest office provides a full range of procurement and supply chain consulting services and the industry's leading procurement software platform.
In October 2021, Accenture acquired Xoomworks Group, a consulting and technology company that specializes in procurement technology, digital innovation, and software solutions development. The acquisition is expected to expand Accenture's capabilities for helping clients accelerate technology-led business and procurement transformation.

AVENUE- A Subscription-Based Library (Premium on-demand, subscription-based pricing model):

Get an access to the library of reports at any time from any device and anywhere. For more details, follow the link: https://www.alliedmarketresearch.com/library-access

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Contact: David Correa 1209 Orange Street, Corporation Trust Center, Wilmington, New Castle, Delaware 19801 USA. Int'l: +1-503-894-6022 Toll Free: +1-800-792-5285 UK: +44-845-528-1300 India (Pune): +91-20-66346060 Fax: +1-800-792-5285 [email protected]

Logo: https://mma.prnewswire.com/media/636519/Allied_Market_Research_Logo.jpg

IMAGES

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Procurement Strategy. How to Get it Right? [Guide + Template]
PPT

COMMENTS

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Market research, as defined in Federal Acquisition Regulation (FAR) Part 2, "Definitions," is the ... WHY DO MARKET RESEARCH? Federal procurement law and regulations require market research under certain circumstances. Federal statutes found in the United States Code (U.S.C.)—41 U.S.C. 253a(a)(1), 41 U.S.C. 264b, ...
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EME can help you to: openly and transparently discuss "the problem" and possible solutions. write clearer requirements to include in your specification and business case. encourage competition and ensure a good number of applications. gain a better understanding at an early stage of how much a contract could cost and how long it could take.
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions."

Part 10 - Market Research

Procurement Market Research

What Is Procurement?

Why Is Procurement Market Research Important?

Key Job Titles

Why Does Business Need Procurement Market Research?

Key Success Factors

About Procurement Market Research

Expand globally with confidence. Contact SIS International today!

Market research: To do or not to do?

Methodology and the Right Question

Responsiveness Versus Responsibility

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3.1 Market Research

3.2 Perform Market Research

3.3 Request For Information (RFI)

3.4 Industry Day

3.5 Internal Government Estimate

3.6 Determine Contract Type

3.6.1 Fixed Price Contracts

3.6.2 Cost Contracts

3.6.3 Cost Incentive Contracts

3.6.4 Performance Incentive Contracts

3.6.5 Time and Materials Contracts

3.6.6 Labor Hour Contracts

3.7 Update Procurement Strategy Plan

3.8 Finalize Specs/Scope

3.8.2 Develop Detailed Specifications/Scope of Work

3.8.2.1 Mandatory Specifications

3.8.2.2 Mandatory Specifications for Competitive Purchase of Services – Health and Human Services

3.9 Develop Proposal Evaluation Strategy

3.9.1 Evaluation Process

3.9.2 Evaluation Factors

3.9.3 Weighting Factors

3.9.4 Evaluation Committee

3.9.4.1 RFP Evaluation Committee

3.9.4.2 Competitive Purchase of Services Evaluation Committee

Market Study in Public Procurement

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Procurement IQ - 1st Quarter (2024) Inflation & Commodity Trends

Market Research As a Service

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Request for Information with market research report

What to expect in the RFI process

Develop the RFI with us

Approve your RFI to post on GSA eBuy

Receive your market research report

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MRAS background

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PER DIEM LOOK-UP

2 Choose a date

What is “early market engagement”?

Why should you talk to suppliers before you buy?

How and when to talk to suppliers?

How to identify suppliers to engage with​​

How to carry out early market engagement

Obtaining information from suppliers

The procurement process following EME

Find out more

AI in Market Research — Shaping Smarter Procurement

My Insights on AI in Market Research

1. Efficient Research Process

Limitations of AI in Market Research

@media(min-width: 1024px){.css-hqxvux{max-width:100%;}} Procurement process flow: From basics to best practices in 2024

Importance of a procurement process

@media(min-width: 1024px){.css-hqxvux{max-width:100%;}} Effortless expenses start here.

What is a procurement process?

Step 1: Identify the organization's needs and requirements

Step 2: Evaluate potential suppliers and vendors

Step 3: Negotiate contracts and agreements

How to identify suppliers to engage with