Category:Commercial Items

Introduction

Since the passage of the Federal Acquisition Streamlining Act of 1994 (FASA), the preference within the Federal Government has shifted from the acquisition of items developed exclusively for the Government to the acquisition of commercial items. This change was necessary to take full advantage of available and evolving technological innovations in the commercial sector. The Government’s increased reliance on commercial items is essential to provide technology solutions that increase war fighter capabilities^[1].

FASA signaled a dramatic shift in the course of acquisition policy for the Federal Government. It was the most far-reaching acquisition reform in the last fifty years. FASA promoted maximum use of commercial items to meet the government’s needs and streamlined the process to acquire such items following commercial market practices. Commercial practices are overarching and affect every functional area within acquisition. All of acquisition must move to a price-based, market-driven environment from requirements development through property disposal. Source selection must be made on a "best value" not "cheapest price" basis. Agencies must evaluate their business processes, and reengineer those necessary to ensure streamlined acquisition and operating practices. This will be a never-ending process of mission identification, analysis, planning, implementation, measurement and results. Continuous process improvement will become the norm in the Department.

The FASA preference for commercial items is incorporated into the Federal Acquisition Regulation Statement of guiding principles for the Federal Acquisition System in FAR Section 1.102. FAR 1.102(b) specifically states that the Federal Acquisition System will:

1. Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service by;

a. Maximizing the use of commercial products and services,

b. Using contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform, and

c. Promoting competition;

2. Minimize administrative operating costs;

3. Conduct business with integrity, fairness, and openness; and

4. Fulfill public policy objectives.

FAR 12 implements the Federal Government’s preference for the acquisition of commercial items contained in Title VIII of the Federal Acquisition Streamlining Act of 1994.