Overview
FAR 12.505 identifies specific federal statutes that are rendered inapplicable or modified when the government acquires Commercially Available Off-the-Shelf (COTS) items. It establishes that COTS items, as a specialized subset of commercial products, benefit from all exemptions found in FAR 12.503 and 12.504, plus several additional regulatory waivers designed to streamline the procurement of standardized commercial goods.
Key Rules
- Inherited Exemptions: Because COTS items are a subset of commercial products, any law waived for commercial products/services under FAR 12.503 and 12.504 is also waived for COTS.
- Buy American Act "Domestic Content Test" Waiver: The requirement that "substantially all" components of a product be mined, produced, or manufactured in the U.S. is waived for COTS items. However, this waiver does not apply to COTS items that are manufactured wholly or predominantly of iron or steel (excluding COTS fasteners).
- Recovered Materials: Contractors are exempt from the requirement to provide certifications or estimates regarding the percentage of recovered materials used in the performance of the contract (42 U.S.C. 6962).
- Trafficking in Persons: COTS acquisitions are exempt from the requirement to submit a formal "Compliance Plan and Certification" regarding the prevention of human trafficking, which would otherwise be required for high-value contracts performed abroad.
Practical Implications
- Reduced Administrative Burden: Vendors selling standardized, off-the-shelf items are relieved from the complex task of tracking the country of origin for every sub-component, provided the end item meets the COTS definition and is not predominantly iron or steel.
- Market Accessibility: By waiving specific certification requirements—such as recovered material estimates and human trafficking compliance plans—the government makes it easier for purely commercial entities to enter the federal marketplace without modifying their standard commercial business practices.