I often get asked whether it is a good idea to respond to Sources Sought announcements. My response is always a surprised “Yes, of course!” But perhaps the question is being asked because of a lack of understanding of what the Sources Sought represents for both Government and Industry.
A Sources Sought Notice (FAR 5.201) is a government market research tool to determine if there are two (2) or more capable businesses (large or small) who are capable of providing the products or services the government needs. The primary purpose of these notices is to improve small business access to acquisition information and enhance competition by identifying contracting and subcontracting opportunities. Sufficient response by small businesses often results in the procurement being set-aside (or partly set-aside) for small businesses only, even when the procurement exceeds the small purchase threshold. That alone is a good reason to respond! Be sure to check out our Podcast Episode 003, “Acquisition Time Zones,” and Episode 013, “The Market Research Zone” for additional information. The responses to the Sources Sought are used by the government in developing their Acquisition Strategy for that procurement (FAR 34.004).
If you have not previously worked for the agency making the announcement, it is a good time to start getting your company name and capabilities in front of those who have already said they are interested in what you sell. This is also the time when you can still help “shape” the procurement when you respond. The Sources Sought often asks for industry input and recommendations, even answers to specific questions such as what types of contracts might be best to use or what are some alternatives to the solution that the government is contemplating. See Podcast Episode 213, “Shaping Over the Line,” for a discussion on how shaping a procurement not only benefits industry but makes for better procurements for the government.
I think I should mention that Sources Sought are sometimes called Requests for Information (RFI), rather interchangeably. RFIs are referred to in FAR Part 10, “Market Research” and while similar to Sources Sought, they are supposed to serve two different functions. The Sources Sought, as mentioned previously, is to identify the capabilities and interest of businesses, especially small businesses, in competing for a particular procurement. An RFI is focused more on getting industry input into what the solution might be to a government requirement.
Both Sources Sought and RFIs are the government’s way of reaching out to get industry to talk with them about a product or service that the government needs. This is when your company can suggest ways to improve efficiency, cut costs or make other changes to make the award to in your direction. Maybe you can persuade the contracting agency that the solicitation should include an important piece of technology that only you and a few competitors have. With a change like that, you would have a much better chance of winning the contract award.
Bottom line, if you don’t respond to these important opportunities, you will have little room to complain when a procurement is issued on a full and open basis instead of a small business set aside, or when your competitors shape a procurement in their direction leaving you to wonder why you are less competitive.