5017.1 Before issuing a solicitation or making a purchase, the OAG shall:

(a) Estimate the likely cost of the proposed procurement and assure that adequate funds are available; and

(b) Conduct appropriate market research and establish minimum needs.

5017.2 Market research is designed primarily to familiarize the OAG with the market for the goods or services it seeks to acquire in order to develop an appropriate strategy for conducting a prompt and efficient procurement that promotes full and open competition between qualified firms. The extent of market research will vary depending on factors such as urgency, the size and complexity of the proposed procurement, and the OAG's existing knowledge of the market based on its (or its key personnel's) past experience in procuring similar goods or services.

5017.3 Market research, to the extent it is relevant to the particular procurement and not already known to the OAG, generally should focus on obtaining information such as the following:

(a) Customary practices in the relevant market;

(b) The prospective sources that may be able to supply the goods or services;

(c) The opportunities for participation by firms that qualify as CBEs;

(d) The benchmarks available to evaluate the likely cost of the procurement and the reasonableness of prices or costs proposed by prospective contractors; and

(e) The requirements of any laws or regulations unique to the procurement.

5017.4 In conducting market research, the OAG may solicit information from prospective sources on matters such as their interest in the potential procurement, the characteristics and costs of their products or services, their customary practices, and their knowledge of the industry generally. Such information may be solicited by requesting interested parties to submit written information (for example, by posting a notice on the Internet seeking information pertinent to the proposed procurement), through meetings or telephone contacts, by distributing and seeking comments on a draft solicitation, or through other prudent means.

5017.5 In addition to soliciting information from prospective contractors, the OAG may also obtain information from other sources. For example, price information that

can assist in estimating the likely cost of the procurement and in evaluating price reasonableness is frequently available from sources such as catalogs, Internet sites, or records of past procurements.

SOURCE: Final Rulemaking published at 65 DCR 4406 (April 20, 2018).