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Sopra Steria
2020-01-14 15:48:34

Justifying a commercial item in Defence Contracting

Hi all,

Working in a UK Defence Company, we are relatively new to contracting with the U.S Department of Defence.

We are attempting to justify our product as a Commercial Item under Paragraph 8 of the US DoD Guidebook for determining a Commercial Item. This pertains to our product being developed at our own expense and sold in substantial quantities to State and Local governments. The area for debate is the word 'State'.

We have sold our product to foreign 'States' but not local U.S. State Governments, and this is proving to be the area of contention, the interpretation of the word 'State.'
As part of our Bid submission we provided price justification which satisfied that the price we charged the government via a Prime Contractor was our established market price and this satisfied their approval to place a Purchase Order, so I am trying to establish the risk associated with the rights to cost and pricing data which is associated with Non-Commercial Items. Any help would be gratefully received.
 •  Kaman Precision Products  •   2020-03-13 02:03:55
Luke - I would suggest looking at the Federal Acquisition Regulation (FAR), specifically Part 2.101, as the "Commercial Item" definition there may help you with your commercial item justification. I would suggest using the website Acquisition.gov. Also FAR 15-403 (c) may help some as well. Best of luck!!
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