Why is Market Research being included in Stage 2 Alternatives Analysis?
Agencies/state entities are required to perform market research to collect information and analyze the capabilities of vendors in the existing market. Market research determines whether the business need identified can be met by products or services available in the current marketplace; whether commercial practices regarding customizing, or modifying products or tailoring services are available to meet the business need or objectives of the proposal.
Market research is also used to determine how many vendors, if any, can provide solutions to the business problem or opportunity. This can shape the procurement strategy, which helps determine the type and content of the product description or statement of work, develops the support strategy, further develop and/or refine requirements, and identifies evaluation factors used for the solicitation.
Market Research is also essential when little or no knowledge exists for the desired IT product, service or solution and allows the Vending industry/community the opportunity to provide current feedback on the existing and innovative products, services or solutions available in the marketplace. In addition, with thorough market research, Agencies/state entities will be in a better position to project more realistic cost estimates and schedules as compared to the current FSR’s rough order of magnitude cost and schedule estimates. Market research will reinforce and validate the Agencies/state entities selected alternatives and business, technical and functional objectives, including cost estimates.