How do you determine commercial items?

A commercial item determination should include market analysis and, if applicable, subcontractor sales history. Technical analysis, logic, explanations and justifications supporting conclusions that items are “of a type,” “evolved” or “modifications” should also be included to support the determination.

What is considered a commercial item?

Commercial items include any item of a type customarily used by the general public, or by nongovernmental entities, for purposes other than governmental purposes that has been sold, leased, or licensed, or offered for sale, lease, or license to the general public (see FAR 2.101).

Who makes commercial item determination?

contracting officers
The statutory definition for commercial items is broad, and contracting officers must exercise sound business judgment in determining whether items or services meet the commercial item definition (see FAR 2.101).

How does the Far define commercial items?

Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and– (i) Has been sold, leased, or licensed to the general public; or.

Which of the following helps to determine whether a requirement will be satisfied by a commercial or noncommercial product or service?

contracting officer
After identifying the need for a good or service, the contracting officer determines whether the item will be commercial or noncommercial.

What is considered a commercial service?

Commercial Service means service to Customers engaged primarily in the sale of goods or services including institutions and local, sate and federal government agencies for uses other than those involving manufacturing or electric power generation.

What is the difference between a commercial item and a non developmental item?

The SD-2, DoD Acquisitions Buying Commercial Items and Nondevelopmental Items provides further guidance. A: An NDI is a product that was developed exclusively for governmental purposes. Products fully developed and in production, but not yet sold and in use.

Can a service be a commercial item?

For example, under the current definition, a service can be a commercial item offered in support of a product that is also a commercial item. Furthermore, a commercial-off-the-shelf (“COTS”) item is a subset of a commercial item, but the definition of a COTS item only includes products and not services.

What is the difference between a commercial and non commercial contract?

In commercial procurements, ordering agencies need only review observable commercial market prices to make a decision on pricing reasonableness. In contrast, noncommercial acquisitions require contracting officers to review certified pricing data that demonstrates the reasonableness of the prices.

Is real property considered a commercial item?

The statutory and regulatory definition of “commercial item” is broad and covers a wide range of products and services. It includes: Products, other than real property, that have been offered for sale, lease, or license to the public.

Does FAR Part 31 apply to commercial items?

Additionally, cost accounting standards do not apply to contracts for commercial items on a firm fixed-price basis, and the cost principles (FAR Part 31) do not apply when price, rather than cost, analysis is performed in connection with a contract award. Cost audits rarely have a place in commercial-item contracts.

What is the difference between commercial and non commercial?

Commercial restaurants operate on a for-profit basis, meaning they rely on profits to stay in business. Noncommercial ventures are typically subsidized by the institution from which they operate. Commercial restaurants are typically privately owned by an independent operator or franchise owner or by the chain itself.