Overview
FAR 11.103 establishes the parameters under which an agency may require offerors to demonstrate that a product is already established in the commercial marketplace or has a proven track record of performance under previous government contracts. It serves as a mechanism to ensure reliability and minimize risk by favoring items with a demonstrated history of success.
Key Rules
- Dual Pathways for Validation: Offerors can demonstrate acceptability by showing the item has achieved commercial market acceptance or has been satisfactorily supplied under recent government contracts for similar requirements.
- Application Criteria: Use is appropriate when the agency requires demonstrated reliability and product support; however, it is specifically prohibited for new or evolving items where innovation is needed.
- Focus on the Product: Evaluation criteria must relate strictly to the item’s performance and intended use, rather than the general capability of the offeror.
- Non-Exclusivity: Commercial market acceptance cannot be the sole criterion used to determine if a requirement is met.
- Market Research & Inclusivity: Criteria must be supported by market research and must consider the entire relevant market, ensuring small business concerns are not unfairly excluded.
- Mandatory Documentation: The Contracting Officer must document the contract file to justify the use of market acceptance and support the specific criteria chosen.
Practical Implications
- Risk Mitigation: This section allows agencies to avoid "vaporware" or untested prototypes by requiring proof that a product works in real-world environments before the government commits funds.
- Balancing Innovation and Proven Performance: Contracting officers must be careful not to over-specify market acceptance in fast-moving tech sectors, as doing so could inadvertently violate the rule against using these criteria for evolving items and could lead to protests regarding restrictive competition.