What is a commercial item determination?

Asked By: Lovella Hartmans | Last Updated: 1st March, 2020
Category: business and finance mergers and acquisitions
4.1/5 (85 Views . 26 Votes)
An adequate commercial item determination clearly identifies and supports how the item meets the commercial item definition in FAR 2.101. A commercial item determination should include market analysis and, if applicable, subcontractor sales history.

Click to see full answer

Thereof, what is a commercial item?

A: According to Part 2 of the Federal Acquisition Regulation (FAR), a commercial item is any product or service that is customarily used by the general public or nongovernmental entities for nongovernmental purposes. Products that have received minor modifications to meet DoD requirements.

Likewise, what is the simplified acquisition threshold for commercial items? Simplified Acquisition Threshold (SAT) for commercial items is raised from $6.5 million to $7.0 million. FedBizOpps pre-award and post-award notices remain unchanged at $25,000. Cost or pricing data threshold increases from $700,000 to $750,000.

Similarly, it is asked, what is a Nondevelopmental item?

An item developed at private expense and sold in substantial quantities, on a competitive basis, to state and local governments. For example, products sold to state and local governments, not sold commercially, could be bullet proof vests and fire and rescue equipment.

Is construction a commercial item?

As of now, no construction is not a commercial item. This is official hearsay, as the DAR chair of the FAR Part 36 has personally told me this. There are several reasons. One of which is that you'd be foolish to allow contractors ro draft the standard terms and conditions for your contract.

23 Related Question Answers Found

What is a commercial product?

Commercial Product as used in this Article, means a product in regular production that is sold in substantial quantities to the general public and/or industry at established catalog or market prices. Commercial Product means vials of Product Produced for commercial sale.

What is a non commercial service?

A non-commercial (also spelled noncommercial) activity is an activity that does not, in some sense, involve commerce, at least relative to similar activities that do have a commercial objective or emphasis.

Does DPAS apply to commercial items?

Does DPAS apply to commercial item orders? According to the FAR and DCMA no. Per DCMA: "An unrated order is a commercial order or a DoD order that is not ratable." (see www.dcma.mil/DPAS/, "Rating System").

When a commercial item is procured by the government?

When a commercial item is procured by the government, the contractor will provide a TDP or Technical Data Package to the government that documents the functional, performance, and physical characteristics of their product and will assist in the development of configuration management efforts.

Why is Commercial Contracting important?

A commercial contract is an agreement between two or more persons/businesses where they exchange goods or services. When there is a breach of contract, the law lets the non-breaching party seek a remedy for the breach. This remedy is usually in the form of money damages.

What is COTS application?

Commercial-off-the-shelf (COTS) software is a term for software products that are ready-made and available for purchase in the commercial market. Public sector organizations are relying more and more on COTS applications to supplement, enhance or replace proprietary systems.

Does the Changes clause apply to far 12 commercial contracts?

Commercial Item Contracts.
When using FAR Part 12 procedures for the acquisition of commercial items, the Government does not have authority to unilaterally require changes.

What must agencies do if market research indicates commercial or Nondevelopmental items might not be available to satisfy agency needs?

If market research indicates commercial or nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with 10.001(a)(3)(ii) and determine whether the need can be restated to permit commercial or nondevelopmental items to satisfy the agency's needs.

What information should market research results provide?

Market research supports the acquisition planning and decision process, supplying technical and business information about commercial technology and industrial capabilities to arrive at the most suitable approach to acquiring, distributing and supporting supplies and services.

What is the simplified acquisition threshold 2020?

The Micro-Purchase Threshold would be increased from $3,500 to $10,000. The Simplified Acquisition Threshold would be increased from $150,000 to $250,000.

What are micro purchases?

- Micro-Purchases. Micropurchase Definition. As defined in the FAR at 2.101, a micro-purchase is an acquisition of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold.

What is a government purchase order?

DD Form 1155 – Purchase Order
The order is an offer by the Government to the supplier to buy certain supplies or services upon specific terms and conditions. The PO falls under the simplified acquisition procedures.

What is simplified acquisition threshold 2019?

Simplified acquisition threshold means the dollar amount below which a non-Federal entity may purchase property or services using small purchase methods. As of the publication of this part, the simplified acquisition threshold is $150,000, but this threshold is periodically adjusted for inflation.

What is micro purchase threshold for government?

Federal micro-purchase threshold - increased from $3,500 to $10,000 and. Federal simplified acquisition threshold (formerly known as the federal small purchase threshold) -increased from $150,000 to $250,000.

What is the public announcement requirement for micro purchases?

What is the public announcement requirement for micro-purchases? By soliciting two sources under SAP, you have satisfied the requirement to obtain competition to the maximum extent practicable. Their history of completing similar contracts and quality of their performance.

What is the current SAT threshold?

Simplified Acquisition Threshold (“SAT”) from $150,000 to $250,000, and. Micro-Purchase Threshold (“MPT”) from $3,500 to $10,000.