Government Contracts FAR Rule Proposes Change to Definition of “Commercial Item”
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Wednesday, June 12, 2019

FAR Rule Proposes Change to Definition of “Commercial Item”

By Government Contracts Editorial Staff

A proposed rule would amend the Federal Acquisition Regulation to allow nondevelopmental items developed exclusively at private expense and sold in substantial quantities to foreign governments to be treated as commercial items. The rule would implement section 847 of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91), which amended the 41 USC 103(8) definition of “commercial item” to expand the universe of NDIs that qualify as commercial items to include items sold on a competitive basis to multiple foreign governments. Accordingly, the rule proposes to expand the FAR 2.101 definition of “commercial item” to include NDIs sold to multiple foreign governments. According to the rule, the change will allow more acquisitions to fall under the definition of commercial item procurements and use standard commercial terms and conditions to the maximum extent practicable. Comments on the proposed rule referencing FAR Case 2018-008 are due July 9, 2019. See ¶70,006.336 for the text of the of the rule.

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