Effects of Market Research Quality in the Services Contract Life Cycle

Abstract

This research examines how the quality and documentation of market research influence acquisition outcomes across the Department of Defense (DoD) contract life cycle. Given the DoD’s extensive reliance on private-sector contracts and substantial annual spending, effective market research is critical for promoting competition, controlling costs, and improving contractor performance. However, prior research and oversight consistently identify deficiencies in the execution and documentation of market research, creating risk throughout the acquisition process. Using an exploratory quantitative approach, this study analyzed 28 completed service contract files from Army and Navy contracting organizations. A standardized Market Research Report (MRR) template and scoring rubric were developed to evaluate the depth and quality of market research and compare it to measurable outcomes across pre-award, award, and post-award phases. Findings reveal significant variability in market research documentation, including missing reports and gaps in required performance assessments. Despite these inconsistencies, no discernible relationship was identified between market research quality and acquisition outcomes, largely due to the study’s limited scope. The results highlight challenges in standardization, documentation, and auditability, and indicate a need for expanded research to better understand how market research contributes to improved contracting performance.