Overview
FAR 12.101 establishes a federal preference for commercial solutions, requiring agencies to prioritize the procurement of commercial products, commercial services, and nondevelopmental items. It mandates proactive market research and ensures these preferences are integrated throughout the entire supply chain.
Key Rules
- Mandatory Market Research: Agency heads are required to conduct market research to identify if existing commercial or nondevelopmental items can satisfy the agency's requirements.
- Acquisition Preference: Agencies must acquire commercial or nondevelopmental solutions whenever they are available and capable of meeting the government's needs.
- Flow-Down Requirement: Prime contractors and subcontractors at all levels must incorporate commercial or nondevelopmental components into items supplied to the agency to the maximum extent practicable.
Practical Implications
- Contractors should focus their proposals on commercial capabilities, as the government is legally bound to favor these over custom, government-unique developments.
- This policy reduces the government's reliance on unique specifications and streamlines the acquisition process by leveraging private-sector innovation and existing market proven solutions.