DTIC ADA559032: Market Intelligence Guide

6.4 MB·English

by  Defense Technical Information Center

NPS-CM-12-009
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Market Intelligence Guide
5 January 2012
by
Lt Col Timothy Hawkins, Lt Col Michael Knipper, Capt Jason
Ackiss, Capt Derek Aufderheide, Capt Pavan Balaji,
Capt Mike Corrigan, Capt Amanda DeLancey, Capt John Dix,
Capt Bryce Fiacco, Capt Dan Finkenstadt, Capt Trey Fryman,
Capt Ken Haile, Capt Caitlin Harris, Capt Jeremy Maloy,
Capt Mike Mealiff, Capt John Muir, Capt Josh Nabors,
Capt Andy Peterson, Capt Andrew Pratt, Capt Andrew
Ramsey, Capt James Simmons, Capt Dan Stephens,
Capt Neil Wall, Capt Brian Williams
Graduate School of Business & Public Policy
Naval Postgraduate School
Approved for public release, distribution is unlimited.
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1. REPORT DATE 3. DATES COVERED
05 JAN 2012 2. REPORT TYPE 00-00-2012 to 00-00-2012
4. TITLE AND SUBTITLE 5a. CONTRACT NUMBER
Market Intelligence Guide
5b. GRANT NUMBER
5c. PROGRAM ELEMENT NUMBER
6. AUTHOR(S) 5d. PROJECT NUMBER
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5f. WORK UNIT NUMBER
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION
Naval Postgraduate School,Graduate School of Business & Public REPORT NUMBER
Policy,555 Dyer Road,Monterey,CA,93943
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Approved for public release; distribution unlimited
13. SUPPLEMENTARY NOTES
14. ABSTRACT
Sound market research is the foundation of effective acquisition decisions and processes. However, this
axiom appears to be undervalued in the government procurement domain. While agencies are responsible
for conducting market research appropriate to the procurement situation, very little guidance is available
to assist acquisition personnel to meet the intent of the FAR. The FAR offers little direction; Parts 10 and
12 dedicate a mere 1,477 words to the topic of market research. Existing market research guides are
outdated do not emphasize efficient outcomes, and do not address market research needed to support
strategic sourcing. The government?s current approach to market research is ad hoc, inconsistent, and
redundant since information is rarely shared between buying activities. Additionally, no existing research
or policy addresses how to properly organize or resource the collection and use of market research.
Furthermore, specific skills for determining needed information, finding it, analyzing it, and disseminating
it are not systematically taught or developed in the government?s acquisition workforce. Many commercial
best practices (e.g., industry analysis and a purchasing portfolio matrix) that are transferrable to the
not-for-profit sector are absent. Each of these tools is essential to designing the optimal contract that reaps
the most value from the exchange. Therefore, this market intelligence guide is developed to address the
aforementioned deficiencies in an effort to provide acquisition personnel practical guidance on conducting
meaningful market research. It is targeted toward strategic sourcing and complex, high-value federal
procurements.
15. SUBJECT TERMS
16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF 18. NUMBER 19a. NAME OF
ABSTRACT OF PAGES RESPONSIBLE PERSON
a. REPORT b. ABSTRACT c. THIS PAGE Same as 285
unclassified unclassified unclassified Report (SAR)
Standard Form 298 (Rev. 8-98)
Prescribed by ANSI Std Z39-18
The research presented in this report was supported by the Acquisition Chair of the
Graduate School of Business & Public Policy at the Naval Postgraduate School.

To request Defense Acquisition Research or to become a research sponsor,
please contact:

NPS Acquisition Research Program
Attn: James B. Greene, RADM, USN, (Ret.)
Acquisition Chair
Graduate School of Business and Public Policy
Naval Postgraduate School
555 Dyer Road, Room 332
Monterey, CA 93943-5103
Tel: [phone]
Fax: [phone]
E-mail: [email protected]

Copies of the Acquisition Sponsored Research Reports may be printed from our
website www.acquisitionresearch.net

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Abstract
Sound market research is the foundation of effective acquisition decisions and
processes. However, this axiom appears to be undervalued in the government procurement
domain. While agencies are responsible for conducting market research appropriate to the
procurement situation, very little guidance is available to assist acquisition personnel to
meet the intent of the FAR. The FAR offers little direction; Parts 10 and 12 dedicate a mere
1,477 words to the topic of market research. Existing market research guides are outdated,
do not emphasize efficient outcomes, and do not address market research needed to
support strategic sourcing. The government’s current approach to market research is ad
hoc, inconsistent, and redundant since information is rarely shared between buying
activities. Additionally, no existing research or policy addresses how to properly organize or
resource the collection and use of market research. Furthermore, specific skills for
determining needed information, finding it, analyzing it, and disseminating it are not
systematically taught or developed in the government’s acquisition workforce. Many
commercial best practices (e.g., industry analysis and a purchasing portfolio matrix) that are
transferrable to the not-for-profit sector are absent. Each of these tools is essential to
designing the optimal contract that reaps the most value from the exchange. Therefore, this
market intelligence guide is developed to address the aforementioned deficiencies in an
effort to provide acquisition personnel practical guidance on conducting meaningful market
research. It is targeted toward strategic sourcing and complex, high-value federal
procurements.
Keywords: Market Research, Market Intelligence, Acquisition Strategy,
Efficiency

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About the Authors
Lieutenant Colonel Timothy G. Hawkins (USAF), Ph.D., is an Assistant Professor at
the Naval Postgraduate School in Monterey, California. He directs and teaches in
the Strategic Purchasing program aimed at transforming military procurement. He
has published numerous articles on procurement ethics, opportunism in buyer-
supplier relationships, performance-based logistics, collaborative pricing, and
electronic reverse auctions in scholarly publications such as the Journal of Supply
Chain Management, the Journal of Business Research, the International Journal of
Physical Distribution and Logistics Management, Industrial Marketing Management,
the Journal of Business Ethics, the International Journal of Logistics Management,
Supply Chain Management: An International Journal, the Journal of Marketing
Channels, the Air Force Journal of Logistics, and the Journal of Public Procurement.

Lieutenant Colonel Michael E. Knipper (USAF), Ph.D., is the Commander of the 771
Enterprise Sourcing Squadron at Wright-Patterson AFB, OH. He leads an
organization chartered to strategically source approximately $5B in installation level
requirements spanning 71 CONUS bases. In his current role, he serves as the
integrator for both USAF-level and MAJCOM sourcing initiatives to identify leveraged
savings and improved support opportunities for the warfighter.
Capt Jason Ackiss, Capt Derek Aufderheide, Capt Pavan Balaji, Capt Mike Corrigan,
Capt Amanda DeLancey, Capt John Dix, Capt Bryce Fiacco, Capt Dan Finkenstadt,
Capt Trey Fryman, Capt Ken Haile, Capt Caitlin Harris, Capt Jeremy Maloy, Capt
Mike Mealiff, Capt John Muir, Capt Josh Nabors, Capt Andy Peterson, Capt Andrew
Pratt, Capt Andrew Ramsey, Capt James Simmons, Capt Dan Stephens, Capt Neil
Wall, and Capt Brian Williams were students at the Naval Postgraduate School
pursuing their MBAs with a concentration in Strategic Purchasing.

Timothy G. Hawkins
Graduate School of Business and Public Policy
Naval Postgraduate School
Monterey, CA 93943-5000
Tel: [phone]
Fax: [phone]
E-mail: [email protected]

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NPS-CM-11-009
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Market Intelligence Guide
5 January 2012
by
Lt Col Timothy Hawkins, Lt Col Michael Knipper, Capt Jason
Ackiss, Capt Derek Aufderheide, Capt Pavan Balaji,
Capt Mike Corrigan, Capt Amanda DeLancey, Capt John Dix,
Capt Bryce Fiacco, Capt Dan Finkenstadt, Capt Trey Fryman,
Capt Ken Haile, Capt Caitlin Harris, Capt Jeremy Maloy,
Capt Mike Mealiff, Capt John Muir, Capt Josh Nabors,
Capt Andy Peterson, Capt Andrew Pratt, Capt Andrew
Ramsey, Capt James Simmons, Capt Dan Stephens,
Capt Neil Wall, Capt Brian Williams
Graduate School of Business & Public Policy
Naval Postgraduate School
Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of
the Navy, the Department of Defense, or the Federal Government.

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