Overview
This subpart implements 41 U.S.C. 1906 and 1907 by identifying specific statutory provisions that are waived, modified, or rendered inapplicable to commercial acquisitions. It serves as the authoritative list of legal requirements that do not apply to contracts and subcontracts for commercial products, commercial services, and commercially available off-the-shelf (COTS) items.
Key Rules
- Inapplicability to Prime Contracts: The subpart lists laws that do not apply to prime government contracts for the acquisition of commercial products or commercial services.
- Subcontractor Relief: It identifies statutes that are not applicable to subcontracts at any tier, provided the subcontract is for commercial products or services.
- COTS Item Exemptions: Specific exemptions are provided for contracts and subcontracts involving Commercially Available Off-the-Shelf (COTS) items.
- Modification of Laws: In addition to full exemptions, the subpart identifies laws that have been specifically amended or modified to limit their reach in the commercial marketplace.
Practical Implications
- Regulatory Burden Reduction: This section streamlines the procurement process by removing "government-unique" statutory requirements that would otherwise discourage commercial companies from doing business with the government.
- Simplified Flow-downs: Prime contractors can use this subpart to identify which mandatory flow-down clauses can be legally omitted from their agreements with commercial subcontractors, reducing administrative complexity and risk.