Implementing Market Research

[Jamaal Valentine]

Understanding the statements at FAR 10.001[a][3] and 10.002[1], what are your thoughts and ideas on the practical purposes of market research on construction procurements, which are widely treated as non-commercial (outside of identifying capable sources, and equipment and material availability)?

In my observations it appears the government doesn't and isn't setup to efficiently act upon any information it receives on industry practices concerning warranty, financing, terms and conditions, laws and regulations, safety and health, energy conservation and sustainability, and contract types.

As far as I can tell, it's just easier to have contractors conform to the government requirement versus seeking deviations, etc. so the government solicitation is issued despite any market research findings and alternate proposals are rarely, if ever allowed.

[ji20874]

The market research should inform Government decisions regarding matters such as warranty, financing, terms and conditions, laws and regulations, safety and health, energy conservation and sustainability, and contract types.

Then, the Government is ready to prepare its solicitation.

[Guest Vern Edwards]

There's a lot more to market research for construction.

The most important facet of market research is construction technology. There are new developments in system designs (electrical, plumbing, HvAC, energy, security, etc.) -- new systems, subsystems, components, parts, and materials. There are new construction methods, practices, and equipment -- think robotics, 3D printing, machines. These affect specifications and have a direct impact on costs and schedules. The construction industry is very dynamic with respect to such things. See http://www.enr.com/topics/587-construction-technology

Technical matters are constantly changing, much moreso than contracting practices.

[Jamaal Valentine]

I completely agree, there is a lot more to market research for construction. From my observations of FBO and my peers, implementing the results of market research in any meaningful way is difficult. It appears organizations requiring contracting support and most COs have a model contract in mind and any market research conducted by the contracting office is merely to find sources that can fulfill the requirement as-written. The government doesn't appear positioned to consider industry practices regarding matters such as specifications, processes, warranty, financing, terms and conditions, laws and regulations, safety and health, energy conservation and sustainability, or contract types. Cookie-cutter RFPs are issued and all they seek is a name and a price.

Perhaps one problem is that market research seems to routinely occur post requirements development. I've personally seen specifications that contractors in the local area can't reasonably adhere to, and specs that call for outdated procedures that drive costs up. Standardized specifications that cannot keep up with advances are pushed down to an agency, including the whole building design guide and Unified Facilities Guide Specifications (UFGS), as a one size fits all solution.

In my opinion, there are simple changes that can be made in order to leverage new developments and advances in construction. Market research should be placed early in the process and be a requirement lead by organizations requiring contracting support. After all, the flexibility to change technical matters based on market research results is owned by the requirement generator.