Overview
This section establishes that commercially available off-the-shelf (COTS) items are a subset of commercial products, generally subject to the same policies while benefiting from specific additional regulatory exemptions.
Key Rules
- Definition Reference: COTS items are formally defined in FAR 2.101.
- Policy Default: All policies applicable to commercial products also apply to COTS items unless a specific exception is noted.
- Expanded Exemptions: COTS items are exempt from certain laws listed in FAR 12.505, which are in addition to the standard commercial product exemptions found in 12.503 and 12.504.
Practical Implications
- Contractors providing COTS items experience a significantly lower compliance burden compared to traditional government-unique or even standard commercial procurement.
- Acquisition officials must verify the specific exemptions in FAR 12.505 (such as certain domestic preference nuances) to ensure they are not applying unnecessary clauses to a COTS contract.