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Commercial Item Status

Companies need to understand how the U.S. Government buys products and services to effectively position and safeguard themselves.

The Government buys products and services as both a non-commercial or government specific requirement or as a commercial item. The differences between the two acquisitions can be dramatically different and companies should understand the consequences of each.

If a company wants to assert that its products or services are a commercial item, it will need to be able to justify the status under FAR 2.201 and FAR Part 12. Additionally, you will need to be able to help your customers justify the reasonableness of the price.

The applicability of various FAR and agency clauses to commercial items differs and you should negotiate carefully, especially with regards to protection of intellectual property rights.

If a subcontractor asserts commerciality, you will need to carefully review before consenting to the designation.

I can help strategize whether you should pursue commercial item status, build rationale to support a commercial item justification, and negotiate appropriate terms and conditions.