Federal market

Federal market means acquisitions by the Federal Government from offerors located in the United States, or such smaller area as SBA designates if it concludes that the class of products is not supplied on a national basis.
(1) When considering the appropriate market area for a product, SBA presumes that the entire United States is the relevant Federal market, unless it is clearly demonstrated that a class of products cannot be procured on a national basis. This presumption may be particularly difficult to overcome in the case of manufactured products, since such items typically have a market area encompassing the entire United States.
(2) When considering geographic segmentation of a Federal market, SBA will not necessarily use market definitions dependent on airline radius, political, or SBA regional boundaries. Market areas typically follow established transportation routes rather than jurisdictional borders. SBA examines the following factors, among others, in cases where geographic segmentation for a class of products is urged:
(i) Whether perishability affects the area in which the product can practically be sold;
(ii) Whether transportation costs are high as a proportion of the total value of the product so as to limit the economic distribution of the product;
(iii) Whether there are legal barriers to transportation of the item;
(iv) Whether a fixed, well-delineated boundary exists for the purported market area and whether this boundary has been stable over time; and
(v) Whether a small business, not currently selling in the defined market area, could potentially enter the market from another area and supply the market at a reasonable price.

Source

13 CFR § 121.1202


Scoping language

None
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