Market research serves to determine estimated values when the contracting authority lacks information on identical or similar contracts relative to the planned procurement.
Drafting tender conditions should also reflect market characteristics, which can be identified through market research and preliminary market consultation (PMC). The exact form and execution of the research are left to the discretion of the contracting authority.
The process serves to collect basic information regarding potential price offers and the availability of the required supplies or services. It primarily relies on general data from publicly accessible sources (such as websites, conferences, trade fairs, etc.), meaning without direct communication with suppliers, or through general inquiries that do not necessarily lead to specific requirements in the tender documentation. From the perspective of the Office for the Protection of Competition (ÚOHS), market research represents passive information gathering.
Market research in the private sector – In the commercial sphere, conducting more thorough and detailed market research leads to better decision-making and reduces business risk.
Market Research – Recommended Steps:
- Defining objectives – The contracting authority specifies why the research is being conducted and what information is needed (e.g., verifying standard pricing or supply availability).
- Information requirements – Key data points necessary for decision-making are identified, such as supplier details, available pricing, delivery lead times, or historical price developments.
- Secondary research – Designated staff collect data from public sources, including product datasheets, online databases, websites, or industry conferences. General email inquiries can be sent to suppliers if necessary.
- Data evaluation – After gathering the information, the contracting authority compares the data and evaluates whether it meets the objectives and how it affects the parameters of the planned contract.
- Research report – The findings are summarized in a concise document. This report can also serve as supporting documentation to justify the procedure to audit or grant authorities.
