Federal Acquisition Regulation: Revision of Definition of “Commercial Item”, 61017-61038 [2021-22144]

Download as PDF Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 [FAC 2022–01; FAR Case 2018–018; Item I; Docket No. FAR–2018–0018, Sequence No. 1] RIN 9000–AN76 Federal Acquisition Regulation: Revision of Definition of ‘‘Commercial Item’’ Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 to change the definition of ‘‘commercial item.’’ DATES: Effective December 6, 2021. FOR FURTHER INFORMATION CONTACT: Ms. Zenaida Delgado, Procurement Analyst, at 202–969–7207 or by email at zenaida.delgado@gsa.gov, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755 or GSARegSec@gsa.gov. Please cite FAC 2022–01, FAR Case 2018–018. SUPPLEMENTARY INFORMATION: SUMMARY: lotter on DSK11XQN23PROD with RULES2 I. Background DoD, GSA, and NASA published a proposed rule at 85 FR 65610 on October 15, 2020, to amend the FAR definition of ‘‘commercial item’’ to implement section 836 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115–232). Section 836 separates the definition of ‘‘commercial item’’ at 41 U.S.C. 103 into the definitions of ‘‘commercial product’’ and ‘‘commercial service,’’ at 41 U.S.C. 103 and 103a. Splitting the definition of ‘‘commercial item’’ into the definitions of ‘‘commercial product’’ and ‘‘commercial service’’ was a recommendation made by the independent panel created by section 809 of the NDAA for FY 2016 (Pub. L. 114–92). The panel was created to VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 review and improve the functioning of the defense acquisition system and eliminate any regulations found unnecessary to achieve such improvements. The panel recommended the splitting of the definition of ‘‘commercial item’’ to better ‘‘reflect the significant roles services and commercial services play today in the DoD procurement budget.’’ See recommendation on pages 29 to 30 of Volume 1 of 3 dated January 2018 of the Report of the Advisory Panel on Streamlining and Codifying Acquisition Regulations, available at https:// section809panel.org/wp-content/ uploads/2018/04/Sec809Panel_Vol1Report_Jan18_REVISED_2018-0314.pdf. The change in this final rule resolves the issue the Section 809 Panel cites, which is that the ‘‘acquisition workforce has faced issues with inconsistent interpretations of policy, confusion over how to identify eligible commercial products and services’’. Bifurcating the definition of ‘‘commercial item’’ into ‘‘commercial product’’ and ‘‘commercial service’’ is a way to provide clarity for the acquisition workforce, which may result in greater engagement with the commercial marketplace. It is important to note that the amendment to separate ‘‘commercial item’’ into ‘‘commercial product’’ and ‘‘commercial service’’ does not expand or shrink the universe of products or services the Government may procure using FAR part 12, nor does it change the terms and conditions with which contractors must comply. The following summarizes the changes made to the FAR: 1. Removed from FAR part 2 the definition of ‘‘commercial item’’ and replaced it with the definitions of ‘‘commercial product’’ and ‘‘commercial service’’ in accordance with the NDAA with only minor revisions for clarification to align with that which is currently in the FAR. The clarification in paragraph 3(ii) of the definition of ‘‘commercial product’’ has been in FAR part 2 since the definition of ‘‘commercial item’’ was incorporated by FAR case 94–790, Acquisition of Commercial Items, in 1995. Paragraphs 2(i) and 2(ii) of the definition of ‘‘commercial service’’ are also long standing; they stem from a FAR change published October 22, 2001, which was revised slightly in a FAR change published June 18, 2004. 2. Replaced all instances of ‘‘noncommercial’’ and ‘‘noncommercial’’ with ‘‘other than commercial’’ as it relates to this rule. This editorial change provides consistent language throughout the FAR. PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 61017 3. Removed FAR 12.102(g), and a corresponding reference at FAR 37.601(c), as obsolete. FAR 12.102(g) only applied to contracts or orders entered into before November 23, 2013. 4. Added the definition of ‘‘established price’’ at FAR 16.001 to be consistent with the term as defined at the FAR clauses at FAR 52.216–2, Economic Price Adjustment—Standard Supplies, and 52.216–3, Economic Price Adjustment—Semistandard Supplies. This is an editorial change for consistency to have the definition in both the clause and the corresponding FAR part. 5. Made conforming changes to cross references, and the following Standard Forms (SF): SF 294, Subcontracting Report for Individual Contracts; SF 1443, Contractor’s Request for Progress Payment; and SF 1449, Solicitation/ Contract/Order for Commercial Products and Commercial Services. Also, minor editorial changes were made as needed throughout the FAR. These revisions do not impact terms and conditions of commercial contracts or how the Government procures commercial products or commercial services. Three respondents submitted comments on the proposed rule. II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows: A. Summary of Significant Changes There are no significant changes from the proposed rule. B. Analysis of Public Comments Of the three responses received, none provided negative comments on the rule, although they suggested changes as described below. No changes resulted from the public comments. Comment: A respondent expressed that paragraph (1) of the commercial product definition in the proposed rule is not consistent with the language in 41 U.S.C. 103(1). This respondent stated that while the wording for both definitions is very similar, the structure of the definition as promulgated in current law indicates it was the intent of Congress that for a product to meet the definition of a commercial product under paragraph (1), it must have been sold, leased, or licensed, or offered for sale, lease, or license, to the general public. E:\FR\FM\04NOR2.SGM 04NOR2 61018 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations Response: The Councils note that the respondent’s quoted definition is similar to the statutory definition, and to the definition used in the proposed rule. No change is necessary. Comment: Two respondents suggested to explicitly include commercial services under the definition of commercial-off-the-shelf (‘‘COTS’’) items to provide the Government access to the broadest range of service providers. One respondent pointed to the following benefits: increase competition and allow Government customers quicker access to required commercial services. A respondent suggested to, at least, clarify that commercial wireless telecommunications offerings constitute a ‘‘commercial product’’ and thus can satisfy all definitional elements of COTS items. Response: The Councils cannot accept the suggestions because they are not consistent with the statute being implemented. Section 836 of the NDAA for FY 2019 did not modify the definition of COTS item. lotter on DSK11XQN23PROD with RULES2 C. Other Changes Other changes made in the final rule are as follows: • Revisions were made to account for additional instances of the term ‘‘commercial item’’ in the FAR after the proposed rule was published in the following sections: FAR 9.110–4(b), 9.110–5, 9.405–1, 39.205(a)(3) and (c)(3), 43.105(c), 52.209–14(d)(1), 52.229–13(c), and 52.229–14(c). • Three changes missed in the proposed rule were added as follows: the heading of FAR subpart 12.1, the word ‘‘commercial’’ at FAR 15.601, and the inclusion of ‘‘commercial products’’ in 52.212–5(b)(36). • Prescriptive language was relocated from the introductory text for the FAR clauses at 52.216–2, 52.216–3, and 52.216–4 to FAR 16.203–4(a)(4), (b)(6), and (c)(5), respectively, to be consistent with FAR drafting conventions. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items), or for Commercial Services This rule does not create new solicitation provisions or contract clauses. This rule merely replaces the term ‘‘commercial item(s)’’ with ‘‘commercial product(s),’’ ‘‘commercial service(s),’’ ‘‘commercial product(s) or commercial service(s),’’ or ‘‘commercial product(s) and commercial service(s)’’ in the FAR including in part 52, as appropriate. This rule does not impose VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 any new requirements on contracts at or below the SAT or for commercial products, including COTS items, or for commercial services. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. V. Congressional Review Act As required by the Congressional Review Act (5 U.S.C. 801–808) before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the ‘‘Submission of Federal Rules Under the Congressional Review Act’’ form to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804. VI. Regulatory Flexibility Act DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601–612. The FRFA is summarized as follows: This final rule amends the FAR to change the definition of ‘‘commercial item’’ by splitting it into the definitions of ‘‘commercial product’’ and ‘‘commercial service’’. The objective is to implement section 836 of the John S. McCain NDAA for FY19 (Pub. L. 115–232). This is consistent with the recommendations by the independent panel created by section 809 of the NDAA for FY 2016 (Pub. L. 114–92). This case implements amendments to 41 U.S.C. 103 and 103a. The legal basis for this rule is 40 U.S.C. 121(c), 10 U.S.C. chapter 137, and 51 U.S.C. 20113. There were no significant issues raised by the public comments in response to the initial regulatory flexibility analysis. The final rule impacts all entities that do business with the Federal Government, including the over 327,458 small business registrants in the System for Award Management. However, the rule does not implement any requirements with which PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 small entities must comply. This rule splits the definition of ‘‘commercial item’’ into the definitions of ‘‘commercial product’’ and ‘‘commercial service’’. The final rule does not include additional reporting or record keeping requirements. There are no available alternatives to the final rule to accomplish the desired objective of the statute. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. VII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C 3501–3521) applies; however, the changes to the FAR and the updates to the information collections do not impose new information collection burden. The changes do not impose additional, or change any existing, information collection requirements to the paperwork burden previously approved under the following OMB Control Numbers: 9000–0007, Subcontracting Plans; 9000–0018, Federal Acquisition Regulation Part 3: Improper Business Practices and Personal Conflicts of Interest; 9000– 0193, FAR Part 9 Responsibility Matters; 9000–0097, Federal Acquisition Regulation Part 4 Requirements; 9000– 0136, Commercial Item Acquisitions; 9000–0034, Examination of Records by Comptroller General and Contract Audit; 9000–0013, Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data; 9000– 0048, Authorized Negotiators and Integrity of Unit Prices; 9000–0010, Progress Payments, SF 1443; 9000–0024, Buy American, Trade Agreements, and Duty-Free Entry; 9000–0061, Transportation Requirements; 9000– 0068, Economic Price Adjustment; 9000–0070, Payments; 9000–0138, Contract Financing; 9000–0188, Combating Trafficking in Persons; 9000– 0197, Use of Products and Services of Kaspersky Lab; 9000–0198, Violations of Arms Control Treaties or Agreements; and 1615–0092, E-Verify Program. List of Subjects in 48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 Government procurement. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 2, 3, 4, 5, 6, 7, E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 as set forth below: ■ 1. The authority citation for 48 CFR parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM 1.102 [Amended] 2. Amend section 1.102 by removing from paragraph (b)(1)(i) the phrase ‘‘commercial products and services;’’ and adding the phrase ‘‘commercial products and commercial services;’’ in its place. ■ 1.102–2 [Amended] 3. Amend section 1.102–2 by removing from paragraph (a)(4) the phrase ‘‘commercial products and services’’ and adding the phrase ‘‘commercial products and commercial services’’ in its place. ■ PART 2—DEFINITIONS OF WORDS AND TERMS 4. Amend section 2.101 in paragraph (b)(2) by— ■ a. In the defined term ‘‘Biobased product’’, removing the phrase ‘‘commercial or industrial product’’ and adding the phrase ‘‘commercial product or industrial product’’ in its place; ■ b. In the defined term ‘‘Commercial component’’, removing the words ‘‘commercial item’’ and adding the words ‘‘commercial product’’ in its place; ■ c. In the defined term ‘‘Commercial computer software’’, removing the words ‘‘commercial item’’ and adding the words ‘‘commercial product or commercial service’’ in its place. ■ d. Removing the defined term ‘‘Commercial item’’; ■ e. Adding the defined terms ‘‘Commercial product’’ and ‘‘Commercial service’’ in alphabetical order; and ■ f. In the defined term ‘‘Commercially available off-the-shelf (COTS) item’’, removing from paragraph (1)(i) ‘‘commercial item’’ and ‘‘definition in this section’’ and adding ‘‘commercial product’’ and ‘‘definition of ‘‘commercial product’’ in this section’’ in their places, respectively. The additions read as follows: lotter on DSK11XQN23PROD with RULES2 ■ 2.101 * Definitions. * * VerDate Sep<11>2014 * * 20:16 Nov 03, 2021 Jkt 256001 (b) * * * (2) * * * Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and— (i) Has been sold, leased, or licensed to the general public; or (ii) Has been offered for sale, lease, or license to the general public; (2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation; (3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for— (i) Modifications of a type customarily available in the commercial marketplace; or (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. ‘‘Minor modifications’’ means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor; (4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public; (5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or (6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments. Commercial service means— (1) Installation services, maintenance services, repair services, training services, and other services if— PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 61019 (i) Such services are procured for support of a commercial product as defined in this section, regardless of whether such services are provided by the same source or at the same time as the commercial product; and (ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government; (2) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these services— (i) Catalog price means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and (ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors; or (3) A service referred to in paragraph (1) or (2) of this definition, even though the service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor. * * * * * PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 3.104–1 [Amended] 5. In section 3.104–1 amend the definition of ‘‘Contractor bid or proposal information’’ in paragraph (1) by removing ‘‘10 U.S.C. 2306a(h)’’ and adding in its place ‘‘10 U.S.C. 2306a(h)(1)’’ and removing ‘‘41 U.S.C. 3501(a)(2)’’ and adding ‘‘41 U.S.C. 3501(a)(1)’’ in its place. ■ 6. Amend section 3.104–9 by revising the introductory text to read as follows: ■ 3.104–9 Contract clauses. In solicitations and contracts that exceed the simplified acquisition threshold, other than those for commercial products or commercial services, insert the clauses at— * * * * * E:\FR\FM\04NOR2.SGM 04NOR2 61020 3.404 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations [Amended] 4.1202 7. Amend section 3.404 by removing ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 8. Amend section 3.502–2 by revising paragraph (i) introductory text to read as follows: ■ 3.502–2 Subcontractor kickbacks. 4.1902 3.502–3 5.202 [Amended] 17. Amend section 4.1902 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services,’’ in its place. PART 5—PUBLICIZING CONTRACT ACTIONS ■ 3.503–2 5.203 [Amended] 18. Amend section 5.202 by removing from paragraph (a)(10) ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. [Amended] 10. Amend section 3.503–2 by removing ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 3.1004 [Amended] ■ 9. Amend section 3.502–3 by removing ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ [Amended] 19. Amend section 5.203 by removing from paragraphs (a) introductory text, (b), and (c) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in their places, respectively. ■ [Amended] 11. Amend section 3.1004 by removing from paragraph (b)(1) ‘‘commercial item’’ and ‘‘FAR 52.203– 14’’ and adding ‘‘commercial product or commercial service’’ and ‘‘52.203–14’’ in their places, respectively. ■ PART 6—COMPETITION REQUIREMENTS 6.001 [Amended] PART 4—ADMINISTRATIVE AND INFORMATION MATTERS 20. Amend section 6.001 by removing from paragraph (a) ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. 4.203 6.302–5 [Amended] 12. Amend section 4.203 by removing from paragraph (a) the term ‘‘Commercial Items’’ and adding the term ‘‘Commercial Products and Commercial Services’’ in its place. ■ 4.605 [Amended] 13. Amend section 4.605 by removing from paragraph (b) the term ‘‘Commercial Items’’ and adding the term ‘‘Commercial Products and Commercial Services’’ in its place. ■ 4.1103 [Amended] 14. Amend section 4.1103 by removing from paragraph (a)(3) the term ‘‘Commercial Items’’ and adding the term ‘‘Commercial Products and Commercial Services’’ in its place. ■ lotter on DSK11XQN23PROD with RULES2 16. Amend section 4.1202 by removing from paragraph (a) introductory text the terms ‘‘commercial item solicitations’’ and ‘‘FAR part 12’’ and adding the terms ‘‘solicitations for commercial products or commercial services’’ and ‘‘part 12’’ in their places, respectively. ■ * * * * (i) Requires each contracting agency to include in each prime contract, other than for commercial products or commercial services, exceeding $150,000, a requirement that the prime contractor shall— * * * * * * [Amended] 4.1201 [Amended] 15. Amend section 4.1201 by removing from paragraph (d) the term ‘‘commercial items’’ and adding the term ‘‘commercial products or commercial services’’ in its place. ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 ■ [Amended] 21. Amend section 6.302–5 by: a. Removing from paragraph (a)(2)(ii) ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place; and ■ b. Removing from paragraph (c)(3) ‘‘brand-name commercial items’’ and adding ‘‘brand name commercial products’’ in its place. ■ 22. Amend section 6.502 by— ■ a. Revising paragraph (a); ■ b. Removing from paragraph (b)(1)(i) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; ■ c. Removing from paragraph (b)(1)(iv) the term ‘‘commercial items or’’ and adding ‘‘commercial products or commercial services or unnecessarily restricting’’ in its place; ■ d. Removing from paragraph (b)(2)(ii) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ e. Removing from paragraphs (b)(2)(v) and (vi) the term ‘‘commercial items’’ ■ ■ PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 and adding ‘‘commercial products, commercial services,’’ in its place. The revision reads as follows: 6.502 Duties and responsibilities. (a) Agency and procuring activity advocates for competition are responsible for— (1) Promoting the acquisition of commercial products and commercial services; (2) Promoting full and open competition; (3) Challenging requirements that are not stated in terms of functions to be performed, performance required, or essential physical characteristics; (4) Challenging barriers to the acquisition of commercial products and commercial services; and (5) Challenging barriers to full and open competition such as unnecessarily restrictive statements of work, unnecessarily detailed specifications, and unnecessarily burdensome contract clauses. * * * * * PART 7—ACQUISITION PLANNING 7.102 [Amended] 23. Amend section 7.102 by removing from paragraph (a)(1) the phrase ‘‘commercial items or, to the extent that commercial items suitable’’ and adding ‘‘commercial products or commercial services, or to the extent that commercial products suitable’’ in its place. ■ 7.103 [Amended] 24. Amend section 7.103 by removing from paragraph (b) the phrase ‘‘commercial items, or to the extent that commercial items suitable’’ and adding ‘‘commercial products or commercial services, or to the extent that commercial products suitable’’ in its place. ■ 7.105 [Amended] 25. Amend section 7.105 by removing from paragraph (b)(14)(i) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES 8.402 [Amended] 26. Amend section 8.402 by— a. Removing from paragraph (a) the term ‘‘commercial supplies and services’’ and adding ‘‘commercial supplies and commercial services’’ in its place; and ■ b. Removing from paragraph (f)(1) the phrase ‘‘commercial items (part 12),’’ ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations and adding ‘‘commercial products or commercial services (part 12),’’ in its place. ■ PART 9—CONTRACTOR QUALIFICATIONS * 9.106–1 10.001 [Amended] 27. Amend section 9.106–1 by removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. 10.002 [Amended] 28. Amend section 9.109–5 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 9.110–4 [Amended] 29. Amend section 9.110–4 by removing from paragraph (b) ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 9.110–5 [Amended] 30. Amend section 9.110–5 by removing the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 9.405–1 [Amended] 31. Amend section 9.405–1 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 9.405–2 [Amended] 32. Amend section 9.405–2 in paragraph (b) introductory text, in the fourth sentence, by removing ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ 33. Amend section 10.001 by— a. Removing from paragraph (a)(2)(v) the phrase ‘‘for a noncommercial item’’ and adding ‘‘for other than a commercial product or commercial service’’ in its place; ■ b. Removing from paragraph (a)(3)(ii) introductory text the phrase ‘‘commercial items or, to the extent commercial items suitable’’ and adding ‘‘commercial products or commercial services, or, to the extent commercial products suitable’’ in its place; ■ c. Removing from paragraph (a)(3)(iii) the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place; ■ d. Removing from paragraph (a)(3)(iv) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and lotter on DSK11XQN23PROD with RULES2 VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 [Amended] 34. Amend section 10.002 by— a. Removing from paragraph (b) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products, commercial services,’’ in its place; ■ b. Removing from paragraph (b)(1) introductory text the word ‘‘item’’ and adding ‘‘product or service’’ in its place; ■ c. Removing from paragraphs (b)(1)(i)(A), (B), and (C) the word ‘‘Items’’ and adding ‘‘Products or services’’ in its place; ■ d. Removing from paragraph (b)(1)(ii) the word ‘‘items’’ and adding ‘‘products or services’’ in its place; ■ e. Removing from paragraph (c) the phrases ‘‘indicates commercial’’ and ‘‘permit commercial’’ and adding ‘‘indicates commercial products, commercial services,’’ and ‘‘permit commercial products, commercial services,’’ in their places, respectively; and ■ f. Removing from paragraph (d)(1) the phrases ‘‘item or’’ and ‘‘commercial item’’ and adding ‘‘product or’’ and ‘‘commercial product or commercial service’’ in their places, respectively. ■ 35. Revise section 10.003 to read as follows: ■ ■ 10.003 PART 10—MARKET RESEARCH ■ ■ Policy. * * * * (d) See 10.003 for the requirement for a prime contractor to perform market research in contracts in excess of $6 million, other than contracts for the acquisition of commercial products or commercial services (section 826 of Pub. L. 110–181). ■ 9.109–5 e. Revising paragraph (d). The revision reads as follows: Contract clause. The contracting officer shall insert the clause at 52.210–1, Market Research, in solicitations and contracts over $6 million, other than solicitations and contracts for the acquisition of commercial products or commercial services. PART 11—DESCRIBING AGENCY NEEDS 11.002 [Amended] 36. Amend section 11.002 by— a. Removing from paragraph (a)(2)(ii) the phrase ‘‘commercial items, or, to the extent that commercial items suitable’’ and adding ‘‘commercial products or commercial services or, to the extent that commercial products suitable’’ in its place; ■ b. Removing from paragraphs (a)(2)(iii) and (iv) the term ‘‘commercial ■ ■ PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 61021 items’’ and adding ‘‘commercial products, commercial services,’’ in its place; and ■ c. Removing from paragraph (a)(2)(v) the terms ‘‘commercial items or,’’ and ‘‘commercial items suitable’’ and adding ‘‘commercial products or commercial services or,’’ and ‘‘commercial products suitable’’ in their places, respectively. 11.302 [Amended] 37. Amend section 11.302 by— a. Removing from paragraph (b)(1) the terms ‘‘acquiring other’’ and ‘‘commercial items’’ and adding ‘‘acquiring products other’’ and ‘‘commercial products as defined in 2.101’’ in their places, respectively; ■ b. Removing from paragraph (b)(2) the terms ‘‘commercial items’’ and ‘‘the item’’ and adding ‘‘commercial products’’ and ‘‘the product’’ in their places, respectively; and ■ c. Removing from paragraph (c)(1) the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ ■ 11.304 [Amended] 38. Amend section 11.304 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ PART 12—ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES 39. Revise the part heading to read as set forth above. ■ 12.000 [Amended] 40. Amend section 12.000 by— a. In the first sentence, removing the term ‘‘commercial items’’ and adding ‘‘commercial products, including commercial components, and commercial services’’ in its place; and ■ b. In the second sentence, removing the terms ‘‘commercial items’’ and ‘‘commercial items and components’’ and adding ‘‘commercial products and commercial services’’ in their place. ■ ■ 12.001 [Amended] 41. Amend section 12.001 by removing the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 42. Revise the heading of subpart 12.1 to read as follows: ■ Subpart 12.1—Acquisition of Commercial Products and Commercial Services 12.101 [Amended] 43. Amend section 12.101 by removing the term ‘‘commercial items’’ wherever it appears and adding ■ E:\FR\FM\04NOR2.SGM 04NOR2 61022 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations ‘‘commercial products, commercial services,’’ in its place. 12.102 [Amended] 44. Amend section 12.102 by— a. Removing from paragraph (a) the phrase ‘‘the definition of commercial items’’ and adding ‘‘the definitions of ‘‘commercial product’’ or ‘‘commercial service’’ in its place; ■ b. Removing from paragraph (c) the term ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (d) the phrase ‘‘commercial item in section 2.101’’ and adding ‘‘commercial product’’ in its place; ■ d. Removing from paragraphs (e) and (f)(1) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ e. In paragraph (f)(2) introductory text: ■ i. Removing the term ‘‘for an item’’ and adding ‘‘for a product’’ in its place; and ■ ii. Removing the term ‘‘commercial item’’ wherever it appears and adding ‘‘commercial product or commercial service’’ in its place; ■ f. Removing from paragraph (f)(2)(i) ‘‘see Subpart 30.2’’ and adding ‘‘see subpart 30.2’’ in its place; and ■ g. Removing paragraph (g). ■ ■ 12.103 ii. Removing in the second sentence the terms ‘‘commercial item’’ and ‘‘type of product or service’’ and adding ‘‘commercial product or commercial service’’ and ‘‘type of commercial product or commercial service’’ in their places, respectively. ■ [Amended] 45. Amend section 12.103 by removing the text ‘‘commercial items’’ and ‘‘12.504);’’ and adding ‘‘commercial products’’ and ‘‘12.504).’’ in their places, respectively. ■ 46. Revise the heading of subpart 12.2 to read as follows: ■ 12.203 [Amended] 49. Amend section 12.203 in paragraph (a) by: ■ a. In the first sentence, removing the term ‘‘commercial items’’ and adding in its place the phrase ‘‘commercial products and commercial services’’; and ■ b. In the second and third sentences, removing the term ‘‘commercial items’’ wherever it appears and adding in its place the phrase ‘‘commercial products or commercial services’’. ■ 50. Amend section 12.204 by revising paragraph (a) to read as follows: Solicitation/contract form. (a)(1) The contracting officer shall use the Standard Form 1449, Solicitation/ Contract/Order for Commercial Products and Commercial Services, if— (i) The acquisition is expected to exceed the simplified acquisition threshold; (ii) A paper solicitation or contract is being issued; and (iii) Procedures at 12.603 are not being used. (2) Use of the SF 1449 is nonmandatory but encouraged for commercial acquisitions not exceeding the simplified acquisition threshold. * * * * * 12.205 [Amended] 51. Amend section 12.205 by— ■ a. In paragraph (a): ■ i. In the first sentence, removing the word ‘‘product’’; and ■ ii. In the second sentence, removing the phrase ‘‘product literature from offerors of commercial items’’ and adding ‘‘product or service literature from offerors of commercial products or commercial services’’ in its place; ■ b. In paragraph (b): ■ i. In the first sentence, removing the phrases ‘‘more than one product’’ and ‘‘commercial items’’ and adding ‘‘multiple offers’’ and ‘‘commercial products or commercial services’’ in their places, respectively; and ■ ii. In the second sentence, removing the phrase ‘‘product as a separate offer’’ and adding ‘‘offer separately’’ in its place; and ■ c. Removing from paragraph (c) the words ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in their place. ■ Subpart 12.2—Special Requirements for the Acquisition of Commercial Products and Commercial Services 12.201 [Amended] 47. Amend section 12.201 by removing ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products and commercial services’’ in its place. ■ 12.202 [Amended] 48. Amend section 12.202 by— a. Removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ b. In paragraph (b): ■ i. Removing in the first sentence the terms ‘‘commercial items’’ and ‘‘products or services’’ and adding ‘‘commercial products or commercial services’’ and ‘‘products or commercial services’’ in their places, respectively; and lotter on DSK11XQN23PROD with RULES2 ■ ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 PO 00000 Frm 00008 Fmt 4701 [Amended] 52. Amend section 12.206 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 12.207 [Amended] 53. Amend section 12.207 by removing from paragraphs (a) and (e) the words ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in their places. ■ 54. Revise section 12.208 to read as follows: ■ ■ 12.204 12.206 Sfmt 4700 12.208 Contract quality assurance. Contracts for commercial products shall rely on contractors’ existing quality assurance systems as a substitute for Government inspection and testing before tender for acceptance unless customary market practices for the commercial product being acquired include in-process inspection. Any inprocess inspection by the Government shall be conducted in a manner consistent with commercial practice. The Government shall rely on the contractor to accomplish all inspection and testing needed to ensure that commercial services acquired conform to contract requirements before they are tendered to the Government. 12.209 [Amended] 55. Amend section 12.209 by removing the words ‘‘commercial items’’ and ‘‘Commercial item’’ and adding ‘‘commercial products and commercial services’’ and ‘‘Commercial product and commercial service’’ in their places, respectively. ■ 12.210 [Amended] 56. Amend section 12.210 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 12.211 [Amended] 57. Amend section 12.211 by: a. Removing the text ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place; and ■ b. Removing the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products’’ in its place. ■ ■ 12.214 [Amended] 58. Amend section 12.214 by— a. Removing from the first sentence ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ b. Removing from the second sentence ‘‘See 48 CFR 30.201–1’’ and ‘‘commercial items’’ and adding ‘‘See 30.201–1’’ and ‘‘commercial products or ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations commercial services’’ in their places, respectively; and ■ c. Removing from the last sentence ‘‘in 48 CFR 30.201’’ and adding ‘‘in 30.201’’ in its place. ■ 59. Revise the heading of subpart 12.3 to read as follows: Subpart 12.3—Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Products and Commercial Services 12.300 [Amended] lotter on DSK11XQN23PROD with RULES2 20:16 Nov 03, 2021 12.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services. * 60. Amend section 12.300 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 61. Amend section 12.301 by— ■ a. Revising the section heading; ■ b. Removing from paragraphs (a) introductory text and (a)(1) the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (b) introductory text the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place; ■ d. In paragraphs (b)(1) and (2): ■ i. Removing in the headings the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ ii. Removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ e. Removing in the third sentence of paragraph (b)(2) the text ‘‘Subpart 1.4’’ and adding ‘‘subpart 1.4’’ in its place; ■ f. Removing from paragraph (b)(3) heading the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; ■ g. In paragraph (b)(4): ■ i. In the heading, removing the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; ■ ii. Removing the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place; and ■ iii. Removing the text ‘‘Part 15’’ and adding ‘‘part 15’’ in its place; ■ h. In paragraph (c)(1): ■ i. Removing the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ ii. Removing the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ i. Removing from paragraph (d) introductory text the text ‘‘commercial ■ VerDate Sep<11>2014 items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place; and ■ j. Removing from paragraph (f) the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: Jkt 256001 * * * * 62. Amend section 12.302 by— ■ a. Revising the section heading; ■ b. In paragraph (a): ■ i. Removing the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products and commercial services’’ in its place; and ■ ii. Removing the text ‘‘Commercial Items’’ wherever it appears and adding ‘‘Commercial Products and Commercial Services’’ in its place; ■ c. In paragraph (b): ■ i. Removing the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ ii. Removing the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ d. Removing from paragraph (c) ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: ■ 12.302 Tailoring of provisions and clauses for the acquisition of commercial products and commercial services. * * 12.303 * * * [Amended] 63. Amend section 12.303 by— a. Removing from the introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ b. Removing from paragraph (c)(1) the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; ■ c. Removing from paragraph (c)(3) the text ‘‘and Executive Orders’’ and adding ‘‘or Executive Orders—Commercial Products and Commercial Services’’ in its place; and ■ d. Removing from paragraphs (e)(1), (3), and (4) the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. ■ 64. Revise the heading for subpart 12.4 to read as follows: ■ PO 00000 Frm 00009 Fmt 4701 Subpart 12.4—Unique Requirements Regarding Terms and Conditions for Commercial Products and Commercial Services 12.401 Sfmt 4700 [Amended] 65. Amend section 12.401 by— a. In paragraph (a), removing the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ b. In paragraph (b), removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ ■ 12.402 [Amended] 66. Amend 12.402 by— a. In paragraph (a): i. Removing the text ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place; and ■ ii. Removing the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place; ■ b. Removing from paragraph (b) the phrase ‘‘complex commercial items or commercial items used’’ and adding ‘‘complex commercial products or commercial services, or commercial products or commercial services used’’ in its place; and ■ c. Removing from paragraph (c) ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ ■ ■ 12.403 [Amended] 67. Amend section 12.403 by removing from paragraphs (a), (b), and (d) the text ‘‘commercial items’’ wherever it appears and adding ‘‘commercial products or commercial services’’ in its place. ■ 12.404 ■ 61023 [Amended] 68. Amend section 12.404 by removing from paragraph (b) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ 69. Revise the heading of subpart 12.5 to read as follows: ■ Subpart 12.5—Applicability of Certain Laws to the Acquisition of Commercial Products, Commercial Services and Commercially Available Off-the-Shelf Items 12.500 [Amended] 70. Amend section 12.500 by— a. Removing from paragraphs (a)(1) and (2) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ b. Removing from paragraph (a)(3) the text ‘‘of COTS items’’ and adding ‘‘of ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 61024 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (b) the terms ‘‘Subpart 22.3’’ and ‘‘commercial items or commercial components’’ and adding ‘‘subpart 22.3’’ and ‘‘commercial products or commercial services’’ in their places, respectively; and ■ d. Removing from paragraph (c) the words ‘‘regards’’ and ‘‘commercial items or commercial components’’ and adding ‘‘regard’’ and ‘‘commercial products or commercial services’’ in their places, respectively. The revision reads as follows: commercially available off-the-shelf (COTS) items’’ in its place; and ■ c. Removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. 12.501 [Amended] 71. Amend section 12.501 by removing from paragraphs (a) and (b) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 12.502 [Amended] 72. Amend section 12.502 by— a. Removing from paragraph (a) the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ b. Revising paragraph (b). The revision reads as follows: ■ ■ 12.502 12.504 Applicability of certain laws to subcontracts for the acquisition of commercial products and commercial services. * 12.505 * * * * (b) For subcontracts for the acquisition of commercial products or commercial services, the clauses at 52.212–5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders— Commercial Products and Commercial Services, and 52.244–6, Subcontracts for Commercial Products and Commercial Services, reflect the applicability of the laws listed in 12.504 by identifying the only provisions and clauses that are required to be included in a subcontract at any tier for the acquisition of commercial products or commercial services. * * * * * ■ 73. Amend section 12.503 by— ■ a. Revising the section heading; ■ b. Removing from paragraph (a) the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (b) the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ d. Removing from paragraph (c) the words ‘‘regards’’ and ‘‘commercial items’’ and adding ‘‘regard’’ and ‘‘commercial products and commercial services’’ in their places, respectively. The revision reads as follows: 12.503 Applicability of certain laws to Executive agency contracts for the acquisition of commercial products and commercial services. * [Amended] * * * * 74. Amend section 12.504 by— a. Revising the section heading; b. Removing from paragraph (a) the phrase ‘‘commercial items or commercial components’’ and adding Subpart 12.6—Streamlined Procedures for Evaluation and Solicitation for Commercial Products and Commercial Services 12.601 General. (a) This subpart provides optional procedures for— (1) Streamlined evaluation of offers for commercial products or commercial services; and (2) Streamlined solicitation of offers for commercial products or commercial services for use where appropriate. (b) These procedures are intended to simplify the process of preparing and issuing solicitations and evaluating offers for commercial products or commercial services consistent with customary commercial practices. ■ 78. Amend section 12.602 by— ■ a. Removing from paragraph (a): ■ i. The term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ ii. The term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ b. Revising paragraph (b). The revision reads as follows: 12.602 * Jkt 256001 79. Amend section 12.603 by— a. Revising the section heading; ■ b. Removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (c)(2)(i) the terms ‘‘commercial items’’ and ‘‘Subpart 12.6’’ and adding ‘‘commercial products or commercial services’’ and ‘‘subpart 12.6’’ in their places, respectively; ■ d. Removing from paragraph (c)(2)(viii) the text ‘‘Commercial’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; ■ e. Removing from paragraphs (c)(2)(ix), (x), and (xi) the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ f. Removing from paragraph (c)(2)(xii) the phrase ‘‘Or Executive Orders— Commercial Items’’ and adding ‘‘or Executive Orders—Commercial Products and Commercial Services’’ in its place. The revision reads as follows: ■ 77. Revise section 12.601 to read as follows: ■ ■ ■ ■ 20:16 Nov 03, 2021 * 75. Amend section 12.505 by removing from the introductory text the words ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ 76. Revise the heading of subpart 12.6 to read as follows: * VerDate Sep<11>2014 * ■ Procedures. * lotter on DSK11XQN23PROD with RULES2 * services, the criteria need not be more detailed than technical (capability of the item offered to meet the agency need), price, and past performance. Technical capability may be evaluated by how well the proposed products or services meet the Government requirement instead of predetermined subfactors. Solicitations for commercial products or commercial services do not have to contain subfactors for technical capability when the solicitation adequately describes the intended use of the commercial product or commercial service. A technical evaluation would normally include examination of such things as product or service literature, product samples (if requested), technical features, and warranty provisions. Past performance shall be evaluated in accordance with the procedures in section 13.106 or subpart 15.3, as applicable. The contracting officer shall ensure the instructions provided in the provision at 52.212–1, Instructions to Offerors—Commercial Products and Commercial Services, and the evaluation criteria provided in the provision at 52.212–2, Evaluation— Commercial Products and Commercial Services, are in agreement. * * * * * Streamlined evaluation of offers. * * * * (b) Offers shall be evaluated in accordance with the criteria contained in the solicitation. For many commercial products or commercial PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 ■ 12.603 Streamlined solicitation for commercial products or commercial services. * E:\FR\FM\04NOR2.SGM * * 04NOR2 * * Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.000 [Amended] 80. Amend section 13.000 by: ■ i. Removing the text ‘‘and commercial items’’ and adding ‘‘commercial products, and commercial services’’; and ■ ii. Removing the text ‘‘of commercial items’’ wherever it appears and adding ‘‘of commercial products and commercial services’’ in its place. ■ 13.003 [Amended] 84. Amend section 13.106–1 by removing from paragraph (b)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. 13.302–1 85. Amend section 13.302–1 by removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. 86. Amend section 13.302–4 by— a. Removing from paragraph (a)(1) ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ b. Removing from paragraph (a)(2) ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 13.302–5 83. Amend section 13.105 by removing from paragraph (b) the words ‘‘commercial items’’ and adding ‘‘commercial products or commercial services,’’ in its place. VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 [Amended] 13.500 [Amended] 92. Amend section 13.500 by— a. In paragraph (a), removing the terms ‘‘commercial items’’ and ‘‘commercial item acquisitions’’ and adding the terms ‘‘commercial products or commercial services’’ and ‘‘commercial acquisitions’’ in their places, respectively; ■ b. In paragraph (b), removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ c. In paragraphs (c)(1) and (2), removing the term ‘‘commercial items’’ and adding in its place the term ‘‘commercial products or commercial services’’. ■ 87. Amend section 13.302–5 by removing from paragraph (d)(1) the text ‘‘Commercial Items’’ and ‘‘commercial items’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘commercial products or commercial services’’ in their places, respectively. 13.303–5 [Amended] 88. Amend section 13.303–5 by removing from paragraph (b)(2) the terms ‘‘commercial item’’ and ‘‘Subpart 13.5’’ and adding ‘‘commercial product and commercial service’’ and ‘‘subpart 13.5’’ in their places, respectively. ■ [Amended] [Amended] 90. Amend section 13.307 by— a. In paragraph (a): ■ i. In the paragraph heading, removing ‘‘Commercial items’’ and adding ‘‘Commercial products and commercial services’’ in its place; and ■ ii. Removing the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ b. In paragraphs (b) and (c), removing the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ ■ 91. Revise the heading for subpart 13.5 to read as follows: ■ PO 00000 Frm 00011 Fmt 4701 14.201–1 [Amended] 93. Amend section 14.201–1 by removing from paragraph (c) the phrase ‘‘(see 4.1202(b)) or for acquisitions of commercial items’’ and adding ‘‘(see 4.1202(b)), or for acquisitions of commercial products and commercial services’’ in its place. PART 15—CONTRACTING BY NEGOTIATION 15.204–1 Sfmt 4700 [Amended] 94. Amend section 15.204–1 by removing from paragraph (b) the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 15.209 89. Amend section 13.303–8 by removing ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. 13.307 PART 14—SEALED BIDDING ■ ■ ■ ■ [Amended] ■ * [Amended] [Amended] ■ 13.303–8 13.105 Subpart 13.5—Simplified Procedures for Certain Commercial Products and Commercial Services ■ 13.005 List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold. * * * * (b) The Federal Acquisition Regulatory Council (FAR Council) will include any law enacted after October 13, 1994, that sets forth policies, procedures, requirements, or restrictions for the acquisition of property or services, on the list set forth in paragraph (a) of this section. The FAR Council may make exceptions when it determines in writing that it is in the best interest of the Government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold. * * * * * [Amended] ■ 13.302–4 81. Amend section 13.003 by— ■ a. Removing from paragraph (c)(1)(ii) the phrase ‘‘commercial items using Subpart’’ and adding ‘‘commercial products or commercial services using subpart’’ in its place; ■ b. Removing from paragraph (c)(2) introductory text the phrase ‘‘commercial items, the threshold in Subpart’’ and adding ‘‘commercial products and commercial services, the threshold in subpart’’ in its place; ■ c. Removing from paragraph (g)(1) the phrase ‘‘threshold for other than commercial items’’ and adding ‘‘threshold when acquiring other than commercial products or commercial services’’ in its place; and ■ d. Removing from paragraph (g)(2) the text ‘‘commercial items’’ and ‘‘in Parts’’ and adding ‘‘commercial products or commercial services’’ and ‘‘in parts’’ in their places, respectively. ■ 82. Amend section 13.005 by revising paragraph (b) to read as follows: ■ lotter on DSK11XQN23PROD with RULES2 13.106–1 61025 [Amended] 95. Amend section 15.209 by removing from paragraph (b)(1)(iii) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 96. Amend section 15.306 by revising paragraph (e)(2) to read as follows: ■ 15.306 Exchanges with offerors after receipt of proposals. * * * * * (e) * * * (2) Reveals an offeror’s technical solution, including— (i) Unique technology; (ii) Innovative and unique uses of commercial products or commercial services; or (iii) Any information that would compromise an offeror’s intellectual property to another offeror; * * * * * E:\FR\FM\04NOR2.SGM 04NOR2 61026 15.401 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations [Amended] 97. Amend section 15.401 in the definition of ‘‘Subcontract’’ by removing the terms ‘‘commercial items’’ and ‘‘41 U.S.C. 3501(a)(3)’’ and adding ‘‘commercial products or commercial services’’ and ‘‘41 U.S.C. 3501(a)(2)’’ in their places, respectively. ■ 98. Amend section 15.403–1 by— ■ a. In paragraph (b)(3), removing the terms ‘‘commercial item’’ and ‘‘subsection’’ and adding ‘‘commercial product or commercial service’’ and ‘‘section’’ in their places, respectively; ■ b. In paragraph (b)(5), removing the terms ‘‘commercial items’’ and ‘‘subsection’’ and adding ‘‘commercial products or commercial services’’ and ‘‘section’’ in their places, respectively; ■ c. Revising the heading of paragraph (c)(3) and revising paragraph (c)(3)(i); ■ d. Removing from paragraphs (c)(3)(ii)(A) and (B) the term ‘‘commercial items’’ and adding ‘‘commercial services’’ in their places, respectively; ■ e. Revising paragraph (c)(3)(iii) introductory text; ■ f. Removing from paragraphs (c)(3)(iii)(A), (B), and (C) the text ‘‘commercial item’’ and adding ‘‘commercial product’’ in their places, respectively; and ■ g. Removing from paragraph (c)(3)(iv) the phrase ‘‘for noncommercial supplies or services treated as commercial items’’ and adding ‘‘for other than commercial products or services treated as commercial products or commercial services’’ in its place. The revisions read as follows: ■ 15.403–1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. chapter 35). lotter on DSK11XQN23PROD with RULES2 * * * * * (c) * * * (3) Commercial products and commercial services. (i) Any acquisition that the contracting officer determines meets the commercial product or commercial service definition in 2.101, or any modification, as defined in paragraph (3)(i) of the commercial product definition, that does not change a commercial product to other than commercial, is exempt from the requirement for certified cost or pricing data. If the contracting officer determines that a product or service claimed to be commercial is not, and that no other exception or waiver applies (e.g., the acquisition is not based on adequate price competition; the acquisition is not based on prices set by law or regulation; and the acquisition exceeds the threshold for the submission of certified cost or pricing data at 15.403–4(a)(1)), the contracting VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 officer shall require submission of certified cost or pricing data. * * * * * (iii) The following requirements apply to minor modifications defined in paragraph (3)(ii) of the definition of a commercial product at 2.101 that do not change the commercial product to other than commercial: * * * * * 15.403–3 [Amended] 99. Amend section 15.403–3 by— a. Revising the heading of paragraph (c); ■ b. Removing from paragraph (c)(1) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place; ■ c. Removing from the heading of paragraph (c)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ d. Removing from paragraphs (c)(2)(i), (ii), and (iii) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: ■ ■ 15.403–3 Requiring data other than certified cost or pricing data. * * * * * (c) Commercial products and commercial services. * * * * * * * * ■ 100. Amend section 15.404–1 by— ■ a. Removing from paragraph (a)(4) the phrase ‘‘for commercial or noncommercial items’’; ■ b. Revising the heading of paragraph (b); ■ c. Removing from the last sentence in paragraph (b)(1) the word ‘‘item’’; ■ d. Removing from paragraph (b)(2)(ii) introductory text the phrase ‘‘commercial items including those ‘‘of a type’’ or requiring minor modifications’’ and adding ‘‘commercial products or commercial services including those ‘‘of a type’’ or when requiring minor modifications for commercial products’’ in its place; ■ e. Removing from paragraphs (b)(2)(ii)(C) and (e)(3) the phrase ‘‘commercial items that are ‘‘of a type’’ or requiring minor modifications’’ and adding ‘‘commercial products or commercial services that are ‘‘of a type’’, or requiring minor modifications for commercial products’’ in its place; and ■ f. Removing from paragraph (f)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. The revision reads as follows: 15.404–1 * PO 00000 * Proposal analysis techniques. * Frm 00012 * Fmt 4701 * Sfmt 4700 * (b) Price analysis. * * * * * * * 15.404–2 [Amended] 101. Amend section 15.404–2 in paragraph (a)(2)(iii)(E) by removing the term ‘‘for an item’’ and adding its place the term ‘‘for a product or service’’ and removing the term ‘‘commercial item’’ and adding in its place the phrase ‘‘commercial product or commercial service’’. ■ 15.407–2 [Amended] 102. Amend section 15.407–2 by removing from paragraph (e)(1) the text ‘‘commercial items’’ and adding ‘‘commercial products, commercial services’’ in its place. ■ 15.408 [Amended] 103. Amend section 15.408 by— a. Removing from paragraph (f)(1)(v) the text ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; ■ b. Removing from paragraphs (n)(2)(i)(B)(2)(iii), (iv), and (vi) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place; and ■ c. In table 15–2: ■ i. Revising the section I heading; ■ ii. Revising the section II heading; ■ iii. In paragraph (II)(A)(2), in the second sentence, removing the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ iv. In paragraph (II)(A)(2), in the ninth sentence, removing the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place; and ■ v. Revising the section III heading. The revisions read as follows: ■ ■ 15.408 Solicitation provisions and contract clauses. * * * * * Table 15–2—Instructions for Submitting Cost/Price Proposals When Certified Cost or Pricing Data Are Required * * * * * I. General Instructions * * * * * II. Cost Elements * * * * * III. Formats for Submission of Line Item Summaries * * 15.506 * * * [Amended] 104. Amend section 15.506 by removing from paragraph (d)(5) the phrase ‘‘commercial items, the make ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations and model of the item’’ and adding ‘‘commercial products, the make and model of the product’’ in its place. ■ 105. Amend section 15.601 by revising the definition of ‘‘Commercial item offer’’ to read as follows: 15.601 Definitions. * * * * * Commercial product or commercial service offer means an offer of a commercial product or commercial service that the vendor wishes to see introduced in the Government’s supply system as an alternate or a replacement for an existing supply item. This term does not include innovative or unique configurations or uses of commercial products or commercial services that are being offered for further development and that may be submitted as an unsolicited proposal. * * * * * (4) The contracting officer may modify the clause by increasing the 10 percent limit on aggregate increases specified in 52.216–2(c)(1), upon approval by the chief of the contracting office. (b) * * * (6) The contracting officer may modify the clause by increasing the 10 percent limit on aggregate increases specified in 52.216–3(c)(1), upon approval by the chief of the contracting office. (c) * * * (5) The contracting officer may modify the clause by increasing the 10 percent limit on aggregate increases specified in 52.216–4(c)(4), upon approval by the chief of the contracting office. * * * * * 16.301–3 [Amended] 111. Amend section 16.301–3 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 15.603 [Amended] 106. Amend section 15.603 by removing from paragraph (b) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. ■ 16.307 [Amended] 112. Amend section 16.307 by removing from paragraph (a)(1) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. ■ PART 16—TYPES OF CONTRACTS 107. Amend section 16.001 by adding in alphabetical order the definition of ‘‘Established price’’ to read as follows: ■ 16.506 16.001 Definitions. * * * * * Established price means a price that— (1) Is an established catalog or market price for a commercial product sold in substantial quantities to the general public; and (2) Is the net price after applying any standard trade discounts offered by the contractor. * * * * * 16.201 [Amended] 108. Amend section 16.201 by removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 16.202–2 [Amended] 109. Amend section 16.202–2 by removing from the introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 110. Amend section 16.203–4 by adding paragraphs (a)(4), (b)(6), and (c)(5) to read as follows: lotter on DSK11XQN23PROD with RULES2 ■ 16.203–4 Contract clauses. (a) * * * VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 [Amended] 113. Amend section 16.506 by removing from paragraph (h) the words ‘‘See’’ and ‘‘commercial items’’ and adding ‘‘See’’ and ‘‘commercial products or commercial services’’ in their places, respectively. ■ 114. Amend section 16.601 by— ■ a. Removing from paragraph (c)(2)(ii) the term ‘‘noncommercial items’’ and adding ‘‘other than commercial products or commercial services’’ in its place; ■ b. Removing from paragraph (c)(2)(iv) the phrase ‘‘the definition of commercial item at 2.101’’ and adding ‘‘the definition of ‘‘commercial service’’’’ in its place; ■ c. Removing from paragraph (d)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ d. Revising the first sentence of paragraph (f)(1) and revising paragraphs (f)(2) and (3). The revisions read as follows: ■ 16.601 Time-and-materials contracts. * * * * * (f) * * * (1) The contracting officer shall insert the provision at 52.216–29, Time-and-Materials/Labor-Hour PO 00000 Frm 00013 Fmt 4701 Sfmt 4700 61027 Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition, in solicitations contemplating use of a time-andmaterials or labor-hour type of contract for the acquisition of other than commercial products or commercial services, if the price is expected to be based on adequate price competition. * * * (2) The contracting officer shall insert the provision at 52.216–30, Time-andMaterials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition, in solicitations for the acquisition of other than commercial products or commercial services contemplating use of a time-andmaterials or labor-hour type of contract if the price is not expected to be based on adequate price competition. (3) The contracting officer shall insert the provision at 52.216–31, Time-andMaterials/Labor-Hour Proposal Requirements—Commercial Acquisition, in solicitations contemplating use of a commercial time-and-materials or labor-hour contract. PART 18—EMERGENCY ACQUISITIONS 18.201 [Amended] 115. Amend section 18.201 by removing from paragraph (e) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 116. Amend section 18.202 by— ■ a. Revising the heading for paragraph (c); ■ b. Removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ c. Removing from paragraph (d) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. The revision reads as follows: ■ 18.202 Defense or recovery from certain events. * * * * * (c) Commercial product or commercial service treatment. * * * * * * * * PART 19—SMALL BUSINESS PROGRAMS 19.304 [Amended] 117. Amend section 19.304 by removing from paragraph (b) the term ‘‘Certifications—Commercial Items’’ and adding ‘‘Certifications—Commercial ■ E:\FR\FM\04NOR2.SGM 04NOR2 61028 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations Products and Commercial Services’’ in its place. 19.701 [Amended] 118. Amend section 19.701 by removing from the definition of ‘‘Commercial plan’’ the term ‘‘commercial items’’ and adding ‘‘commercial products and performance of commercial services’’ in its place. ■ 19.704 [Amended] 119. Amend section 19.704 by removing from paragraph (d) the terms ‘‘commercial items’’ and ‘‘commercial item’’ and adding ‘‘commercial products and commercial services’’ and ‘‘commercial product or commercial service’’ in their places, respectively. ■ 120. Amend section 22.305 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ [Amended] 121. Amend section 22.604–1 by removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 22.1302 [Amended] 22.1802 127. Amend section 22.1802 by removing from paragraph (b)(4)(i) the term ‘‘Commercial or noncommercial services’’ and adding ‘‘Services’’ in its place. PART 23—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE 23.501 25.103 ■ 123. Amend section 22.1310 by removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. 25.202 [Amended] 124. Amend section 22.1505 by removing from paragraph (a) the terms ‘‘commercial items’’ and ‘‘Certifications—Commercial Items’’ and adding ‘‘commercial products or commercial services’’ and ‘‘Certifications—Commercial Products and Commercial Services’’ in their places, respectively. [Amended] 125. Amend section 22.1605 by removing from paragraph (a) ‘‘commercial items’’ and adding ‘‘commercial products, commercial services,’’ in its place. 20:16 Nov 03, 2021 [Amended] 131. Amend section 25.202 by removing from paragraph (a)(4) the terms ‘‘commercial item’’, ‘‘commercial item’’, and ‘‘Section’’ and adding ‘‘commercial product’’, ‘‘commercial product’’, and ‘‘section’’ in their places, respectively. ■ 25.703–2 Jkt 256001 [Amended] 132. Amend section 25.703–2 by— a. Removing from paragraph (b) introductory text the phrase ‘‘of this subsection’’ and adding ‘‘of this section’’ in its place; and ■ b. Removing from paragraph (b)(1) the term ‘‘commercial items’’ and adding PO 00000 Frm 00014 Fmt 4701 ‘‘commercial products and commercial services’’ in its place. 25.1001 [Amended] 133. Amend section 25.1001 by removing from paragraph (a) the text ‘‘Executive Orders—Commercial Items’’ and adding ‘‘Executive Orders— Commercial Products and Commercial Services’’ in its place. ■ 25.1101 [Amended] 134. Amend section 25.1101 by— a. In paragraph (a)(1)(i), removing the word ‘‘Subpart’’ and adding ‘‘subpart’’ in its place; ■ b. In paragraph (a)(1)(ii), removing the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place; and ■ c. In paragraph (b)(1)(i)(B), removing the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place. ■ 135. Amend section 25.1103 by revising paragraph (d) to read as follows: ■ ■ 25.1103 Other provisions and clauses. * * * * * (d) The contracting officer shall include in each solicitation for the acquisition of other than commercial products or commercial services the provision at 52.225–20, Prohibition on Conducting Restricted Business Operations in Sudan—Certification. * * * * * PART 26—OTHER SOCIOECONOMIC PROGRAMS 26.206 [Amended] 136. Amend section 26.206 by removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ PART 27—PATENTS, DATA, AND COPYRIGHTS 27.102 [Amended] 137. Amend section 27.102 by removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ ■ ■ ■ VerDate Sep<11>2014 [Amended] 130. Amend section 25.103 by removing from paragraph (e) the terms ‘‘commercial item’’, ‘‘commercial item’’, and ‘‘Section’’ and adding ‘‘commercial product’’, ‘‘commercial product’’, and ‘‘section’’ in their places, respectively. ■ 22.1605 [Amended] 129. Amend section 23.501 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ PART 25—FOREIGN ACQUISITION [Amended] ■ [Amended] 128. Amend section 22.1803 by removing from paragraph (c)(2) the phrase ‘‘definition of ‘‘commercial item’’ at 2.101’’ and adding ‘‘definition of ‘‘commercial product’’ at 2.101’’ in its place. 22.1310 22.1505 [Amended] ■ 122. Amend section 22.1302 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services,’’ in its place. ■ lotter on DSK11XQN23PROD with RULES2 126. Amend section 22.1801 in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’ by removing in paragraph (1)(i) the phrase ‘‘commercial item (as defined in paragraph (1) of the definition at 2.101’’ and adding ‘‘commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at 2.101’’ in its place. ■ ■ [Amended] 22.604–1 [Amended] 22.1803 PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 22.305 22.1801 Sfmt 4700 27.201–1 [Amended] 138. Amend section 27.201–1 by removing from paragraph (d) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place, and by removing ‘‘FAR’’. ■ 27.201–2 [Amended] 139. Amend section 27.201–2 by— a. Removing from paragraph (c)(1) the term ‘‘commercial items’’ and adding ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations ‘‘commercial products or the provision of commercial services’’ in its place; and ■ b. Removing from paragraph (c)(2)(i) the term ‘‘commercial items’’ and adding ‘‘commercial products or the provision of services that are not commercial services’’ in its place. PART 28—BONDS AND INSURANCE 28.106–4 [Amended] 140. Amend section 28.106–4 by removing from paragraph (b) the words ‘‘Section’’, ‘‘Pub. L.’’ wherever it appears, ‘‘Sections’’, and ‘‘commercial items as defined in Subpart’’ and adding ‘‘section’’, ‘‘Public Law’’, ‘‘sections’’, and ‘‘commercial products or commercial services as defined in subpart’’ in their places, respectively. ■ 28.106–6 [Amended] 141. Amend section 28.106–6 in paragraph (d) introductory text by: ■ a. Removing the term ‘‘Pub. L.’’ wherever it appears and adding in its place ‘‘Public Law’’; ■ b. Removing the word ‘‘Sections’’ and adding in its place ‘‘sections’’; and ■ c. Removing the phrase ‘‘commercial items as defined in Subpart’’ and adding in its place ‘‘commercial products or commercial services as defined in subpart’’. ■ PART 29—TAXES 29.402–3 [Amended] 142. Amend section 29.402–3 by removing from paragraph (a) introductory text the terms ‘‘FAR part 12’’ and ‘‘commercial items’’ and adding ‘‘part 12’’ and ‘‘commercial products and commercial services’’ in their places, respectively. ■ product or commercial service’’ and ‘‘section is sold or transferred’’ in their places, respectively. PART 32—CONTRACT FINANCING 32.000 [Amended] 145. Amend section 32.000 by removing from paragraph (g) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 32.002 [Amended] 146. Amend section 32.002 by— a. Removing from paragraph (b) the terms ‘‘Commercial Item’’ and ‘‘commercial items’’ and adding ‘‘Commercial Product and Commercial Service’’ and ‘‘commercial products and commercial services’’ in their places, respectively; ■ b. Removing from paragraph (c)(1) the term ‘‘Non-Commercial Item Purchase Financing’’ and adding ‘‘Financing for Other Than a Commercial Purchase’’ in its place; and ■ c. Removing from paragraph (c)(2) the words ‘‘For Non-Commercial Items’’ and adding ‘‘for Other Than Commercial Acquisitions’’ in its place. ■ ■ 32.005 [Amended] 147. Amend section 32.005 by removing from paragraph (c) the term ‘‘for Non-Commercial Items’’ and adding ‘‘for Other Than Commercial Acquisitions’’ in its place. ■ 148. Revise the heading of subpart 32.1 to read as follows: ■ Subpart 32.1 Financing for Other Than a Commercial Purchase 32.100 [Amended] 149. Amend section 32.100 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ PART 30—COST ACCOUNTING STANDARDS ADMINISTRATION 30.201–5 [Amended] 143. Amend section 30.201–5 by: a. In paragraph (b)(1) introductory text, removing the text ‘‘$15,000,000’’ and adding ‘‘$15 million’’ in its place; and ■ b. In paragraph (b)(1)(i), removing the term ‘‘commercial items’’ and adding in its place ‘‘commercial products or commercial services’’. ■ ■ lotter on DSK11XQN23PROD with RULES2 PART 31—CONTRACT COST PRINCIPLES AND PROCEDURES 31.205–26 [Amended] 144. Amend section 31.205–26 by removing from paragraph (f) introductory text the phrases ‘‘commercial item’’ and ‘‘subsection is transferred’’ and adding ‘‘commercial ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 32.110 [Amended] 150. Amend section 32.110 by removing from paragraph (a) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. ■ 32.112 32.112–2 Subcontractor requests for information. (a) In accordance with section 806(a)(1) of Public Law 102–190, as amended by sections 2091 and 8105 of Public Law 103–355 (10 U.S.C. 2302 note), upon the request of a subcontractor or supplier under a Federal contract other than for a commercial product or commercial service, the contracting officer shall promptly advise the subcontractor or supplier as to— * * * * * ■ 153. Revise the heading of subpart 32.2 to read as follows: Subpart 32.2 Commercial Product and Commercial Service Purchase Financing 32.201 151. Amend section 32.112 by revising the section heading to read as follows: ■ [Amended] 154. Amend section 32.201 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 32.202–1 [Amended] 155. Amend section 32.202–1 by— a. Removing from paragraph (a) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ b. In paragraph (c): ■ i. Removing the term ‘‘noncommercial’’ and adding ‘‘other than commercial’’ in its place; and ■ ii. Removing the term ‘‘noncommercial’’ wherever it appears and adding ‘‘other than commercial’’ in its place. ■ ■ 32.202–2 [Amended] 156. Amend section 32.202–2 by— a. Revising the section heading; and b. Removing from the definition of ‘‘Commercial advance payment’’ the word ‘‘subsection’’ and the term ‘‘for Non-Commercial Items’’ and adding ‘‘section’’ and ‘‘for Other Than Commercial Acquisitions’’ in their places, respectively. The revision reads as follows: ■ ■ ■ 32.202–2 Types of payments for commercial product and commercial service purchases. * [Amended] 61029 * * 32.202–4 * * [Amended] 32.112 Nonpayment of subcontractors under contracts other than for commercial products and commercial services. 157. Amend section 32.202–4 by removing from paragraph (a)(2) the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. * 32.206 ■ ■ ■ * * * * 152. Amend section 32.112–2 by revising paragraph (a) introductory text to read as follows: PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 ■ [Amended] 158. Amend section 32.206 by— a. Removing the term ‘‘Commercial Items’’ wherever it appears and adding E:\FR\FM\04NOR2.SGM 04NOR2 61030 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations ‘‘Commercial Products and Commercial Services’’ in its place; ■ b. Removing from paragraph (f) ‘‘noncommercial’’ and adding ‘‘other than commercial’’ in its place; and ■ c. Removing from paragraph (g) heading ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 159. Revise the heading of subpart 32.4 to read as follows: Subpart 32.4 Advance Payments for Other Than Commercial Acquisitions 32.504 [Amended] 160. Amend section 32.504 by removing from paragraphs (a), (b), and (g) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. ■ 32.601 [Amended] 161. Amend section 32.601 by removing from paragraphs (b)(3) and (10) the term ‘‘commercial item financing’’ and adding ‘‘financing of commercial products or commercial services’’ in its place. ■ 32.904 [Amended] 162. Amend section 32.904 by removing from paragraph (b)(1)(ii)(B)(4) the phrase ‘‘commercial item, including a brand-name commercial item for’’ and adding ‘‘commercial product or commercial service, including a brandname commercial product for’’ in its place. [Amended] 163. Amend section 32.908 by— a. Removing from paragraph (c) introductory text the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place; and ■ b. Removing from paragraph (c)(1) the terms ‘‘commercial item’’ and ‘‘commercial item for’’ and adding ‘‘commercial product or commercial service’’ and ‘‘commercial product for’’ in their places, respectively. ■ ■ PART 37—SERVICE CONTRACTING 37.601 [Amended] 166. Amend section 39.203 by revising paragraph (d) to read as follows: 43.105 ■ 39.203 Applicability. * * * * * (d) Commercial products and commercial services. When acquiring commercial products and commercial services, an agency must comply with those ICT accessibility standards that can be met with supplies or services that are available in the commercial marketplace and that best address the agency’s needs, but see 39.205(a)(3). * * * * * ■ 167. Amend section 39.205 by revising paragraphs (a)(3) and (c)(3) introductory text to read as follows: (a) * * * (3) Nonavailability of conforming commercial products and commercial services. Where there are no commercial products and commercial services that fully conform to the ICT accessibility standards, the agency shall procure the supplies or service available in the commercial marketplace that best meets the ICT accessibility standards consistent with the agency’s needs. * * * * * (c) * * * (3) Nonavailability of conforming commercial products and commercial services. A determination of commercial products and commercial services nonavailability shall include— * * * * * PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES 42.709–1 [Amended] 168. Amend section 42.709–1 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ [Amended] PART 38—FEDERAL SUPPLY SCHEDULE CONTRACTING 169. Amend section 42.709–7 by removing the text ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. 38.101 42.1305 ■ [Amended] 165. Amend section 38.101 by removing from paragraph (a) the phrase ‘‘commercial supplies and services’’ and adding ‘‘commercial supplies and commercial services’’ in its place. ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 [Amended] 170. Amend section 42.1305 by removing from paragraph (c) the text ‘‘modified-commercial items’’ wherever it appears and adding ‘‘modifiedcommercial products’’ in its place. ■ PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 [Amended] 171. Amend section 43.105 by removing from paragraph (c) the phrase ‘‘commercial items, including commercially available off-the-shelf items’’ and adding ‘‘commercial products, including commercially available off-the-shelf items, and commercial services’’ in its place. ■ PART 44—SUBCONTRACTING POLICIES AND PROCEDURES 44.000 [Amended] 172. Amend section 44.000 by removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ 44.302 Exemptions. 42.709–7 164. Amend section 37.601 by removing paragraph (c). ■ lotter on DSK11XQN23PROD with RULES2 PART 43—CONTRACT MODIFICATIONS 39.205 ■ 32.908 PART 39—ACQUISITION OF INFORMATION TECHNOLOGY [Amended] 173. Amend section 44.302 by removing from paragraph (a) the terms ‘‘commercial items’’ and ‘‘Part 12’’ and adding ‘‘commercial products and commercial services’’ and ‘‘part 12’’ in their places, respectively. ■ 44.303 [Amended] 174. Amend section 44.303 by removing from the introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 175. Revise the heading for subpart 44.4 to read as follows: ■ Subpart 44.4 Subcontracts for Commercial Products and Commercial Services 44.400 [Amended] 176. Amend section 44.400 by removing the text ‘‘commercial items or commercial components’’ and adding ‘‘commercial products, including commercial components, or commercial services’’ in its place. ■ 44.402 [Amended] 177. Amend section 44.402 by— a. Removing from paragraph (a)(1) the words ‘‘commercial items’’ and adding ‘‘commercial products, commercial services,’’ in its place; ■ b. Removing from paragraph (a)(2) introductory text the phrase ‘‘commercial items or commercial components’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (a)(2)(i) the phrase ‘‘executive orders applicable to subcontractors furnishing commercial items or commercial components’’ and adding ‘‘Executive orders applicable to ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations subcontractors furnishing commercial products or commercial services’’ in its place; ■ d. Removing from paragraph (b) the terms ‘‘Commercial Items’’ and ‘‘commercial items or commercial components’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘commercial products or commercial services’’ in their places, respectively; and ■ e. Removing from paragraph (c) the words ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. 44.403 [Amended] 178. Amend section 44.403 by removing the terms ‘‘Commercial Items’’ and ‘‘commercial items’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘commercial products or commercial services’’ in their places, respectively. ■ PART 46—QUALITY ASSURANCE 46.102 [Amended] 179. Amend section 46.102 by— a. Removing from paragraph (b) the phrase ‘‘services tendered’’ and adding ‘‘services (including commercial services) tendered’’ in its place; and ■ b. Removing from paragraph (f) the phrases ‘‘commercial items shall’’ and ‘‘commercial item’’ and adding ‘‘commercial products’’ and ‘‘commercial product’’ in their places, respectively. ■ 180. Revise section 46.202–1 to read as follows: ■ ■ 46.202–1 Contracts for commercial products and commercial services. lotter on DSK11XQN23PROD with RULES2 When acquiring commercial products (see part 12), the Government shall rely on contractors’ existing quality assurance systems as a substitute for Government inspection and testing before tender for acceptance unless customary market practices for the commercial product being acquired include in-process inspection. Any inprocess inspection by the Government shall be conducted in a manner consistent with commercial practice. The Government shall rely on the contractor to accomplish all inspection and testing needed to ensure that commercial services acquired conform to contract requirements before they are tendered to the Government. 46.317 [Amended] 181. Amend section 46.317 by removing from paragraph (b)(1) the term ‘‘Commercial items’’ and adding ‘‘Commercial products and commercial services’’ in its place. ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 182. Amend section 46.706 by— a. Removing from paragraph (b)(1)(iii) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ b. Revising paragraph (b)(5). The revision reads as follows: ■ ■ 46.706 Warranty terms and conditions. * * * * * (b) * * * (5) Markings. (i) The packaging and preservation requirements of the contract shall require the contractor to stamp or mark the supplies delivered or otherwise furnish notice with the supplies of the existence of the warranty. The purpose of the markings or notice is to inform Government personnel who store, stock, or use the supplies that the supplies are under warranty. Markings may be brief but should include— (A) A brief statement that a warranty exists; (B) The substance of the warranty; (C) Its duration; and (D) Who to notify if the supplies are found to be defective. (ii) For commercial products (see 46.709), the contractor’s trade practice in warranty marking is acceptable if sufficient information is presented for supply personnel and users to identify warranted supplies. * * * * * ■ 183. Amend section 46.709 by: ■ a. Revising the section heading; and ■ b. Removing the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. The revision reads as follows: 46.709 Warranties of commercial products and commercial services. * * 46.710 * * * [Amended] 184. Amend section 46.710 by removing from the introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. ■ 185. Amend section 46.801 by revising paragraph (a) to read as follows: ■ 46.801 Applicability. (a) This subpart does not apply to commercial products and commercial services. This subpart applies to contracts other than those for— (1) Information technology, including telecommunications; (2) Construction; (3) Architect-engineer services; and (4) Maintenance and rehabilitation of real property. * * * * * PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 61031 PART 47—TRANSPORTATION 47.405 [Amended] 186. Amend section 47.405 by removing the quote marks in the first sentence, and by removing in the second sentence ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ 47.504 [Amended] 187. Amend section 47.504 by: a. In paragraph (d) introductory text, removing the phrase ‘‘commercial items or commercial components’’ and adding ‘‘commercial products, including commercial components, or commercial services’’ in its place; and ■ b. In paragraph (d)(4) introductory text, removing the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. ■ ■ 47.507 [Amended] 188. Amend section 47.507 by removing from paragraph (a)(3) the terms ‘‘Alternate II’’ and ‘‘commercial items’’ and adding ‘‘Alternate II’’ and ‘‘commercial products’’ in their places, respectively. ■ PART 49—TERMINATION OF CONTRACTS 49.002 [Amended] 189. Amend section 49.002 in paragraph (a)(2) by: ■ a. Removing the term ‘‘commercial item’’ and adding in its place ‘‘commercial product and commercial service’’; ■ b. Removing the term ‘‘commercial items’’ wherever it appears and adding in its place ‘‘commercial products and commercial services’’; and ■ c. Removing the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. ■ 49.501 [Amended] 190. Amend section 49.501 by removing the text ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. ■ PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 191. Amend section 52.203–6 by: a. Revising the date of Alternate I; and b. Removing from paragraph (b) of Alternate I the terms ‘‘commercial items’’ and ‘‘commercial item(s)’’ and adding ‘‘commercial products or commercial services’’ and ‘‘commercial product(s) and commercial service(s)’’ in their places, respectively. The revision reads as follows: ■ ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 61032 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations 52.203–6 Restrictions on Subcontractor Sales to the Government. * * * * * Alternate I (NOV 2021). * * * * * * * * ■ 192. Amend section 52.203–13 by: ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (c) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. The revision reads as follows: 52.203–13 Contractor Code of Business Ethics and Conduct. * * * * * Contractor Code of Business Ethics and Conduct (NOV 2021) * * * * * 193. Amend section 52.203–14 by: a. Revising the date of the clause; and b. Removing from paragraph (d)(1) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place. The revision reads as follows: ■ ■ ■ 52.203–14 Display of Hotline Poster(s). * * * * * * * * * * 194. Amend section 52.204–8 by: a. Revising the date of the provision; and ■ b. Removing from paragraph (c)(1)(xvi) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: ■ ■ 52.204–8 Annual Representations and Certifications. * * * * * * * ■ 195. Amend section 52.204–21 by: ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: 52.204–21 Basic Safeguarding of Covered Contractor Information Systems. lotter on DSK11XQN23PROD with RULES2 * * * Basic Safeguarding of Covered Contractor Information Systems (NOV 2021) * * * * * 196. Amend section 52.204–23 by: a. Revising the date of the clause; and b. Removing from paragraph (d) the phrases ‘‘in all subcontracts,’’ and ■ ■ ■ VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 * * * * Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities (NOV 2021) * * * * * 197. Amend section 52.204–24 by: a. Revising the date of the clause; and b. Removing from the introductory paragraph the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. The revision reads as follows: ■ ■ ■ 52.204–24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. * * * * Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment (NOV 2021) * * * * * 198. Amend section 52.204–25 by: a. Revising the date of the clause; and b. Removing from paragraph (e) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: ■ ■ ■ * * * * 52.204–25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. * Annual Representations and Certifications (NOV 2021) * 52.204–23 Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities. * Display of Hotline Poster(s) (NOV 2021) * ‘‘commercial items’’ and adding ‘‘in all subcontracts’’ and ‘‘commercial products or commercial services’’ in their places, respectively. The revision reads as follows: * * * * Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment (NOV 2021) * * * * * 199. Amend section 52.209–6 by— a. Revising the date of the clause; b. Removing from paragraph (a) introductory text the word ‘‘item’’ and adding ‘‘item’’ in its place; ■ c. Removing from paragraph (a)(1)(i) the phrase ‘‘commercial item (as defined in paragraph (1) of the definition in’’ and adding ‘‘commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ in’’ in its place; and ■ d. Removing from paragraph (e) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. ■ ■ ■ PO 00000 Frm 00018 Fmt 4701 Sfmt 4700 The revision reads as follows: 52.209–6 Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment. * * * * * Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment (NOV 2021) * * * * * 200. Amend section 52.209–13 by: a. Revising the date of the provision; and ■ b. Removing from paragraph (a) the phrase ‘‘commercial items as defined at FAR 2.101’’ and adding ‘‘commercial products and commercial services as defined in Federal Acquisition Regulation 2.101’’ in its place. The revision reads as follows: ■ ■ 52.209–13 Violation of Arms Control Treaties or Agreements—Certification. * * * * * Violation of Arms Control Treaties or Agreements—Certification (NOV 2021) * * * * * 201. Amend section 52.209–14 by: a. Revising the date of the clause; and b. Removing from paragraph (d)(1) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. The revision reads as follows: ■ ■ ■ 52.209–14 Reserve Officer Training Corps and Military Recruiting on Campus. * * * * * Reserve Officer Training Corps and Military Recruiting on Campus (NOV 2021) * * * * * 202. Amend section 52.210–1 by— a. Revising the date of the clause; b. Revising paragraph (a); c. Revising the introductory text of paragraph (b); ■ d. Removing from the introductory text of paragraph (b)(1) the phrase ‘‘commercial items or, to the extent commercial items’’ and adding ‘‘commercial products, commercial services, or, to the extent commercial products’’ in its place; and ■ e. Removing from paragraph (b)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products, commercial services,’’ in its place. The revisions read as follows: ■ ■ ■ ■ 52.210–1 * * Market Research. * * * Market Research (NOV 2021) (a) Definition. As used in this clause— E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations Commercial product, commercial service, and nondevelopmental item have the meaning contained in Federal Acquisition Regulation (FAR) 2.101. (b) Before awarding subcontracts for other than commercial acquisitions, where the subcontracts are over the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, the Contractor shall conduct market research to— * * * * * ■ 203. Amend section 52.212–1 by— ■ a. Revising the section heading; ■ b. Revising the heading and date of the provision; ■ c. Removing from paragraph (b)(8) the term ‘‘FAR 52.212–3’’ and adding ‘‘Federal Acquisition Regulation (FAR) 52.212–3’’ in its place; ■ d. Removing from paragraph (e) the phrase ‘‘subpart 4.10 of the Federal Acquisition Regulation’’ and ‘‘commercial items’’ and adding ‘‘FAR subpart 4.10’’ and ‘‘commercial products or commercial services’’ in their places, respectively; and ■ e. Removing from paragraph (l)(5) the phrase ‘‘commercial items, the make and model of the item’’ and adding ‘‘commercial products, the make and model of the product’’ in its place. The revisions read as follows: 52.212–1 Instructions to Offerors— Commercial Products and Commercial Services. * * * * * * * * * 204. Amend section 52.212–2 by revising the section heading and the heading and date of the provision to read as follows: ■ 52.212–2 Evaluation—Commercial Products and Commercial Services. * * * * Evaluation—Commercial Products and Commercial Services (NOV 2021) * * * * * 205. Amend section 52.212–3 by— a. Revising the section heading; b. Revising the heading and date of the provision; and ■ c. Removing from paragraph (b)(2) the term ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in its place. The revisions read as follows: lotter on DSK11XQN23PROD with RULES2 ■ ■ ■ 52.212–3 Offeror Representations and Certifications—Commercial Products and Commercial Services. * * * VerDate Sep<11>2014 * * 20:16 Nov 03, 2021 Jkt 256001 * * * * * 206. Amend section 52.212–4 by— a. Revising the section heading; b. Revising the heading and date of the clause; ■ c. Removing from paragraph (d) the term ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; ■ d. Removing from paragraph (i)(6)(vii) the phrase ‘‘32.608–2 of the Federal Acquisition Regulation’’ and adding ‘‘FAR 32.608–2’’ in its place; ■ e. Revising the date of Alternate I; ■ f. Removing from the introductory text of paragraph (i)(1)(ii)(A) of Alternate I the words ‘‘commercial item at’’ and adding ‘‘commercial product at FAR’’ in its place; and ■ g. Removing from paragraph (i)(6)(vii) of Alternate I the phrase ‘‘32.608–2 of the Federal Acquisition Regulation’’ and adding ‘‘FAR 32.608–2’’ in its place. The revisions read as follows: ■ ■ ■ 52.212–4 Contract Terms and Conditions—Commercial Products and Commercial Services. * * * * * Contract Terms and Conditions— Commercial Products and Commercial Services (NOV 2021) * * Instructions to Offerors—Commercial Products and Commercial Services (NOV 2021) * Offeror Representations and Certifications—Commercial Products and Commercial Services (NOV 2021) * * * * Alternate I (NOV 2021). * * * * * * * * ■ 207. Amend section 52.212–5 by— ■ a. Revising the section heading; ■ b. Revising the heading and date of the clause; ■ c. Removing from paragraph (a) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; ■ d. Removing from paragraph (a)(2) the date ‘‘(JUL 2018)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ e. Removing from paragraph (a)(3) the date ‘‘(AUG 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ f. In paragraph (b) introductory text: ■ i. Removing the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; and ■ ii. Removing the phrase ‘‘[Contracting Officer check as appropriate.]’’ and adding in its place ‘‘[Contracting Officer check as appropriate.]’’; ■ g. Removing from paragraph (b)(1) the date ‘‘(OCT 1995)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ h. Removing from paragraph (b)(2) the date ‘‘(JUN 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; PO 00000 Frm 00019 Fmt 4701 Sfmt 4700 61033 i. Removing from paragraph (b)(8) the date ‘‘(JUN 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ j. Removing from paragraph (b)(17)(i) the date ‘‘(SEP 2021)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ k. Removing from paragraph (b)(35)(i) the date ‘‘(OCT 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ l. In paragraph (b)(36): ■ i. Removing the date ‘‘(OCT 2015)’’, and adding (NOV 2021) in its place; and ■ ii. Removing the terms ‘‘commercial items’’ and ‘‘22.1803’’ and adding ‘‘commercial products or commercial services’’ and ‘‘FAR 22.1803’’ in their places, respectively; ■ m. Removing from paragraph (b)(48) the date ‘‘(JAN 2021)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ n. Removing from paragraph (b)(49)(i) the date ‘‘(JAN 2021)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ o. Removing from paragraph (b)(56) the term ‘‘Commercial Items’’ and date ‘‘(FEB 2002)’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘(NOV 2021)’’ in their places, respectively; ■ p. Removing from paragraph (b)(57) the term ‘‘Commercial Items’’ and date ‘‘(JAN 2017)’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘(NOV 2021)’’ in their places, respectively; ■ q. Removing from paragraph (b)(63)(i) the date ‘‘(FEB 2006)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ r. Removing from paragraph (b)(63)(iii) the date ‘‘(FEB 2006)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ s. Removing from paragraph (c) introductory text the term ‘‘commercial items’’ and phrase ‘‘[Contracting Officer check as appropriate.]’’ and adding ‘‘commercial products and commercial services’’ and ‘‘[Contracting Officer check as appropriate.]’’ in their places, respectively; ■ t. Removing from paragraph (e)(1) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ u. Removing from paragraph (e)(1)(i) the date ‘‘(JUN 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ v. Removing from paragraph (e)(1)(iii) the date ‘‘(JUL 2018)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ w. Removing from paragraph (e)(1)(iv) the date ‘‘(AUG 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ x. Removing from paragraph (e)(1)(xiii)(A) the date ‘‘(OCT 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ y. Removing from paragraph (e)(1)(xvi) the date ‘‘(OCT 2015)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ E:\FR\FM\04NOR2.SGM 04NOR2 61034 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations z. Removing from paragraph (e)(1)(xxii) the date ‘‘(FEB 2006)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ aa. Removing from paragraph (e)(2) the phrase ‘‘May include in its subcontracts for commercial items’’ and adding ‘‘may include in its subcontracts for commercial products and commercial services’’ in its place; ■ bb. Revising the date of Alternate II; ■ cc. Removing from the introductory text of paragraph (e)(1) of Alternate II the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ dd. Removing from paragraph (e)(1)(ii)(A) of Alternate II the date ‘‘(JUN 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ ee. Removing from paragraph (e)(1)(ii)(C) of Alternate II the date ‘‘(JUL 2018)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ ff. Removing from paragraph (e)(1)(ii)(D) of Alternate II the date ‘‘(AUG 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ gg. Removing from paragraph (e)(1)(ii)(L)(1) of Alternate II the date ‘‘(OCT 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ hh. Removing from paragraph (e)(1)(ii)(O) of Alternate II the date ‘‘(OCT 2015)’’ and adding ‘‘(NOV 2021)’’ in its place; and ■ ii. Removing from paragraph (e)(1)(ii)(U) of Alternate II the date ‘‘(FEB 2006)’’ and adding ‘‘(NOV 2021)’’ in its place. The revisions read as follows: ■ 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services. * * * * * Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (NOV 2021) lotter on DSK11XQN23PROD with RULES2 * 20:16 Nov 03, 2021 Jkt 256001 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Products and Commercial Services). * * * * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (NOV 2021) * * * * * 209. Amend section 52.215–1 by— a. Revising the heading and date of the provision; and ■ b. Removing from paragraph (f)(11)(v) ‘‘commercial items, the make and model of the item’’ and adding ‘‘commercial products, the make and model of the product’’ in its place. The revisions read as follows: ■ ■ 52.215–1 Instructions to Offerors— Competitive Acquisition. * * * * * Alternate II (NOV 2021) * * * * * * * * ■ 208. Amend section 52.213–4 by— ■ a. Revising the section heading; ■ b. Revising the heading and date of the clause; ■ c. Removing from paragraph (a)(1)(ii) the date ‘‘(JUL 2018)’’ and adding in its place ‘‘(NOV 2021)’’; ■ d. Removing from paragraph (a)(1)(iii) the date ‘‘(AUG 2020)’’ and adding in its place ‘‘(NOV 2021)’’; ■ e. Removing from paragraph (a)(2)(vi) the date ‘‘(DEC 2013)’’ and adding in its place ‘‘(NOV 2021)’’; ■ f. In paragraph (a)(2)(viii): VerDate Sep<11>2014 i. Removing the term ‘‘Commercial Items’’ and adding in its place ‘‘Commercial Products and Commercial Services’’; and ■ ii. Removing the date ‘‘(JUL 2021)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ g. Removing from paragraph (b)(1)(viii)(A) the date ‘‘(OCT 2020)’’ and adding in its place ‘‘(NOV 2021)’’; ■ h. Removing from paragraph (b)(1)(xvii) the date ‘‘(JAN 2021)’’ and adding in its place ‘‘(NOV 2021)’’; ■ i. Removing from paragraph (b)(1)(xxi) the date ‘‘(FEB 2006)’’ and adding in its place ‘‘(NOV 2021)’’; ■ j. In paragraph (b)(2)(i): ■ i. Removing the date ‘‘(JUN 2016)’’ and adding in its place ‘‘(NOV 2021)’’; and ■ ii. Removing the phrase ‘‘its information system.’’ and adding ‘‘its information system.)’’ in its place; and ■ k. Removing from paragraph (b)(2)(ii) the date ‘‘(JUN 2020)’’ and adding in its place ‘‘(NOV 2021)’’. The revisions read as follows: ■ * * * * Instructions to Offerors—Competitive Acquisition (NOV 2021) * * * * * 210. Amend section 52.215–14 by— a. Revising the date of the clause; and b. Removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place. The revision reads as follows: ■ ■ ■ 52.215–14 Integrity of Unit Prices. * * * * * Integrity of Unit Prices (NOV 2021) * ■ * * * * 211. Amend section 52.215–20 by— PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 a. Revising the date of the provision; and ■ b. Removing from paragraph (a)(1)(ii) the terms ‘‘Commercial item’’ and ‘‘commercial item’’ and adding ‘‘Commercial product and commercial service’’ and ‘‘commercial product and commercial service’’ in their places, respectively. The revision reads as follows: ■ 52.215–20 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data. * * * * * Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data (NOV 2021) * * * * * 212. Amend section 52.215–21 by— a. Revising the date of the clause; b. Removing from the introductory text of paragraph (a)(1)(ii) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ c. Removing from paragraph (a)(1)(ii)(A)(1) the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place; ■ d. Removing from paragraph (a)(1)(ii)(A)(2) the phrase ‘‘commercial item to a contract or subcontract for the acquisition of an item other than a commercial item’’ and adding ‘‘commercial product or commercial service, to a contract or subcontract for the acquisition of other than a commercial product or commercial service’’ in its place; ■ e. Redesignating paragraph (a)(1)(ii)(B) as paragraph (a)(1)(ii)(B); and ■ f. Removing from newly redesignated paragraph (a)(1)(ii)(B) the term ‘‘commercial item’’ and adding ‘‘commercial product and commercial service’’ in its place. The revision reads as follows: ■ ■ ■ 52.215–21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data— Modifications. * * * * * Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data— Modifications (NOV 2021) * * * * * 213. Amend section 52.216–2 by— a. Revising the introductory text; b. Revising the date of the clause; and c. Removing from paragraph (a) the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place. The revisions read as follows: ■ ■ ■ ■ E:\FR\FM\04NOR2.SGM 04NOR2 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations 52.216–2 Economic Price Adjustment— Standard Supplies. As prescribed in 16.203–4(a), insert the following clause: * * * * * Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition (NOV 2021) Economic Price Adjustment—Standard Supplies (NOV 2021) ■ * * * * * 214. Amend section 52.216–3 by— ■ a. Revising the introductory text; ■ b. Revising the date of the clause; and ■ c. Removing from paragraph (a) the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place. The revisions read as follows: ■ 52.216–3 Economic Price Adjustment— Semistandard Supplies. Economic Price Adjustment— Semistandard Supplies (NOV 2021) * * * * * 215. Amend section 52.216–4 by revising the introductory text to read as follows: ■ 52.216–4 Economic Price Adjustment— Labor and Material. As prescribed in 16.203–4(c), insert the following clause: * * * * * ■ 216. Amend section 52.216–29 by revising the section heading and the heading and date of the provision to read as follows: 52.216–29 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition. * * * * Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition (NOV 2021) * * * * * 217. Amend section 52.216–30 by— ■ a. Revising the section heading; ■ b. Revising the heading and date of the provision; and ■ c. Removing from paragraph (d) the phrase ‘‘commercial item at 2.101’’ and adding ‘‘ ‘‘commercial service’’ at Federal Acquisition Regulation 2.101’’ in its place. The revisions read as follows: lotter on DSK11XQN23PROD with RULES2 ■ 52.216–30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition. * * * VerDate Sep<11>2014 * * 20:16 Nov 03, 2021 Jkt 256001 * * * * 218. Amend section 52.216–31 by revising the section heading and the heading and date of the provision to read as follows: 52.216–31 Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition. * * * * * Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition (NOV 2021) * As prescribed in 16.203–4(b), insert the following clause: * * * * * * * * * * * ■ 219. Amend section 52.219–9 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (b) the definition of ‘‘Commercial item’’; ■ c. Removing from the definition of ‘‘Commercial plan’’ the term ‘‘commercial items’’ and adding ‘‘commercial products and commercial services’’ in its place; ■ d. Adding, in alphabetical order, the definitions ‘‘Commercial product’’ and ‘‘Commercial service’’; ■ e. Removing from paragraph (g) the terms ‘‘commercial items’’ and ‘‘commercial item’’ and adding ‘‘commercial products and commercial services’’ and ‘‘commercial product or commercial service’’ in their places, respectively; and ■ f. In paragraph (j): ■ i. Removing the term ‘‘52.212–5’’ and adding in its place ‘‘FAR 52.212–5’’; ■ ii. Removing the term ‘‘Commercial Items’’ wherever it appears and adding in its place ‘‘Commercial Products and Commercial Services’’; ■ iii. Removing the term ‘‘commercial item’’ and adding in its place ‘‘commercial product or commercial service’’; and ■ iv. Removing the term ‘‘52.244–6’’ and adding ‘‘FAR 52.244–6’’ in its place. The additions and revisions read as follows: 52.219–9 Plan. * * Small Business Subcontracting * * * Small Business Subcontracting Plan (NOV 2021) * * * * * (b) * * * Commercial product means a product that satisfies the definition of ‘‘commercial product’’ in Federal Acquisition Regulation (FAR) 2.101. PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 61035 Commercial service means a service that satisfies the definition of ‘‘commercial service’’ in FAR 2.101. * * * * * ■ 220. Amend section 52.222–50 by— ■ a. Revising the date of the clause; and ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’: ■ i. Removing the word ‘‘means’’ in the introductory text; and ■ ii. Revising paragraph (1) introductory text and (1)(i). The revisions read as follows: 52.222–50 Persons. Combating Trafficking in * * * * * Combating Trafficking in Persons (NOV 2021) * * * * * (a) * * * Commercially available off-the-shelf (COTS) item—(1) Means any item of supply (including construction material) that is— (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; * * * * * ■ 221. Amend section 52.222–54 by— ■ a. Revising the date of the clause; ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’, revising paragraph (1)(i); and ■ c. Removing from paragraph (e)(1)(i) the term ‘‘Commercial or noncommercial services’’ and adding ‘‘Services’’ in its place. The revisions read as follows: 52.222–54 Employment Eligibility Verification. * * * * * Employment Eligibility Verification (NOV 2021) * * * * * (a) * * * Commercially available off-the-shelf (COTS) item— (1) * * * (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; * * * * * ■ 222. Amend section 52.225–1 by— ■ a. Revising the date of the clause; and ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’, revising paragraph (1)(i). The revisions read as follows: 52.225–1 * E:\FR\FM\04NOR2.SGM * Buy American—Supplies. * 04NOR2 * * 61036 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations Buy American—Supplies (NOV 2021) * * * * * (a) * * * Commercially available off-the-shelf (COTS) item—(1) * * * (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; * * * * * ■ 223. Amend section 52.225–3 by— ■ a. Revising the date of the clause; and ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’, revising paragraph (1)(i). The revisions read as follows: 52.225–3 Buy American—Free Trade Agreements—Israeli Trade Act. * * * * * Buy American—Free Trade Agreements—Israeli Trade Act (NOV 2021) * * * * * (a) * * * Commercially available off-the-shelf (COTS) item—(1) * * * (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; * * * * * ■ 226. Amend section 52.229–13 by: ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (c) the phrases ‘‘in all subcontracts,’’ and ‘‘commercial items’’ and adding ‘‘in all subcontracts’’ and ‘‘commercial products or commercial services’’ in their places, respectively. The revision reads as follows: 52.229–13 Taxes—Foreign Contracts in Afghanistan. * * * * * (a) * * * Commercially available off-the-shelf (COTS) item—(1) * * * (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; * * * * * ■ 224. Amend section 52.225–9 by— ■ a. Revising the date of the clause; ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’, revising paragraph (1)(i); and ■ c. Removing from paragraph (b)(2) the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place. The revisions read as follows: 52.225–9 Buy American—Construction Materials. lotter on DSK11XQN23PROD with RULES2 Buy American—Construction Materials Under Trade Agreements (NOV 2021) Buy American—Construction Materials (NOV 2021) (a) * * * Commercially available off-the-shelf (COTS) item—(1) * * * (i) A commercial product (as defined in paragraph (1) of the definition of ‘‘commercial product’’ at Federal Acquisition Regulation (FAR) 2.101; ■ 225. Amend section 52.225–11 by— ■ a. Revising the date of the clause; ■ b. In paragraph (a), in the definition of ‘‘Commercially available off-the-shelf (COTS) item’’, revising paragraph (1)(i); and ■ c. Removing from paragraph (b)(3) the term ‘‘commercial item’’ and adding ‘‘commercial product’’ in its place. The revisions read as follows: 229. Amend section 52.232–16 by— a. Revising the date of the clause; b. Removing from paragraph (j)(5) introductory text the term ‘‘commercial item’’ and adding ‘‘commercial product or commercial service’’ in its place; and ■ c. Removing from paragraph (j)(5)(i) the phrase ‘‘commercial item purchase that meets the definition and standards for acquisition of commercial items in FAR Parts’’ and adding ‘‘commercial product or commercial service purchase that meets the definition and standards for acquisition of commercial products and commercial services in FAR parts’’ in its place. The revision reads as follows: ■ ■ ■ 52.232–16 Progress Payments. * * * * * Progress Payments (NOV 2021) ■ ■ ■ * * * * 227. Amend section 52.229–14 by: a. Revising the date of the clause; and b. Removing from paragraph (c) the phrases ‘‘in all subcontracts’’ and ‘‘commercial items’’ and adding ‘‘in all subcontracts’’ and ‘‘commercial products or commercial services’’ in their places, respectively. The revision reads as follows: * * * * 230. Amend section 52.232–29 by— a. Revising the section heading; b. Revising the heading and date of the clause; ■ c. Removing from paragraph (b) the phrase ‘‘52.212–4, Contract Terms and Conditions—Commercial Items’’ and adding ‘‘Federal Acquisition Regulation (FAR) 52.212–4, Contract Terms and Conditions—Commercial Products and Commercial Services’’ in its place; and ■ d. Removing from paragraph (h) the term ‘‘52.232–31’’ and adding ‘‘FAR 52.232–31’’ in its place. The revisions read as follows: 52.229–14 Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement). 52.232–29 Terms for Financing of Purchases of Commercial Products and Commercial Services. * * * * * * * Taxes—Foreign Contracts in Afghanistan (NOV 2021) * * * * * Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement) (NOV 2021) * * * * * ■ 228. Amend section 52.232–7 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (b)(2) the phrase ‘‘commercial item at 2.101’’ and adding ‘‘commercial product or commercial service in Federal Acquisition Regulation (FAR) 2.101’’ in its place; and ■ c. Removing from paragraph (b)(4) the phrase ‘‘Subpart 31.2 of the Federal Acquisition Regulation (FAR)’’ and adding ‘‘FAR subpart 31.2’’ in its place. The revision reads as follows: 52.232–7 Payments under Time-andMaterials and Labor-Hour Contracts. * * * * * * ■ ■ ■ * * * * Terms for Financing of Purchases of Commercial Products and Commercial Services (NOV 2021) * * * * * 231. Amend section 52.232–30 by— a. Revising the section heading; b. Revising the heading and date of the clause; and ■ c. Removing from paragraph (g) the phrase ‘‘52.212–4, Contract Terms and Conditions—Commercial Items’’ and adding ‘‘Federal Acquisition Regulation 52.212–4, Contract Terms and Conditions—Commercial Products and Commercial Services’’ in its place. The revisions read as follows: ■ ■ ■ 52.232–30 Installment Payments for Commercial Products and Commercial Services. * * * * * 52.225–11 Buy American—Construction Materials Under Trade Agreements. Payments under Time-and-Materials and Labor-Hour Contracts (NOV 2021) Installment Payments for Commercial Products and Commercial Services (NOV 2021) * * * * * VerDate Sep<11>2014 * * 20:16 Nov 03, 2021 Jkt 256001 PO 00000 * * Frm 00022 * Fmt 4701 * Sfmt 4700 E:\FR\FM\04NOR2.SGM * * 04NOR2 * * Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations 232. Amend section 52.232–31 by— a. Revising the date of the provision; b. Removing from paragraph (a) the phrase ‘‘Commercial Items, at 52.232– 29’’ and adding ‘‘Commercial Products and Commercial Services, at Federal Acquisition Regulation (FAR) 52.232– 29’’ in its place; and ■ c. Removing from paragraph (b) the phrase ‘‘52.232–29, Terms for Financing of Purchases of Commercial Items, the terms of the clause at 52.232–29 shall govern’’ and adding ‘‘FAR 52.232–29, Terms for Financing of Purchases of Commercial Products and Commercial Services, the terms of the clause at FAR 52.232–29 shall govern’’ in its place. The revision reads as follows: ■ ■ ■ 52.232–31 Terms. Invitation To Propose Financing * * * * * Invitation To Propose Financing Terms (NOV 2021) * * * * * ■ 233. Amend section 52.232–40 by— ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (c) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revision reads as follows: 52.232–40 Providing Accelerated Payments to Small Business Subcontractors. * * * * * Providing Accelerated Payments to Small Business Subcontractors (NOV 2021) * * * * * ■ 234. Amend section 52.242–17 by revising the introductory text to read as follows: lotter on DSK11XQN23PROD with RULES2 52.242–17 Government Delay of Work. As prescribed in 42.1305(c), insert the following clause: * * * * * ■ 235. Amend section 52.244–6 by— ■ a. Revising the section heading; ■ b. Revising the heading and date of the clause; ■ c. Revising paragraph (a); ■ d. Removing from paragraph (b) the term ‘‘commercial items’’ and adding ‘‘commercial products, commercial services,’’ in its place; ■ e. Removing from the paragraph (c)(1) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ f. Removing from paragraph (c)(1)(i) the date ‘‘(Jun 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 g. Removing from paragraph (c)(1)(iv) the date ‘‘(JUN 2016)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ h. Removing from paragraph (c)(1)(v) the date ‘‘(JUL 2018)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ i. Removing from paragraph (c)(1)(vi) the date ‘‘(AUG 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ j. Removing from paragraph (c)(1)(xiv)(A) the date ‘‘(OCT 2020)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ k. Removing from paragraph (c)(1)(xix) the date ‘‘(DEC 2013)’’ and adding ‘‘(NOV 2021)’’ in its place; ■ l. Removing from paragraph (c)(1)(xx) the date ‘‘(FEB 2006)’’ and adding ‘‘(NOV 2021)’’ in its place; and ■ m. Removing from paragraph (c)(2) the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place. The revisions read as follows: ■ c. Revising the date of Alternate II; d. Removing from paragraph (e)(4) introductory text of Alternate II the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; and ■ e. Removing from paragraph (e)(4)(ii)(C) of Alternate II the term ‘‘commercial items’’ and adding ‘‘commercial products’’ in its place. The revisions read as follows: ■ ■ 52.247–64 Preference for Privately Owned U.S.-Flag Commercial Vessels. * * PART 53—FORMS ■ * Subcontracts for Commercial Products and Commercial Services (NOV 2021) (a) Definitions. As used in this clause— Commercial product, commercial service, and commercially available offthe-shelf item have the meanings contained in Federal Acquisition Regulation (FAR) 2.101. Subcontract includes a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of the Contractor or subcontractor at any tier. * * * * * ■ 236. Amend section 52.246–26 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (g)(1)(i) the term ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Removing from paragraph (g)(2)(i) the words ‘‘Commercial items’’ and adding ‘‘Commercial products and commercial services’’ in its place. The revision reads as follows: 52.246–26 Items. Reporting Nonconforming * * * * * Reporting Nonconforming Items (NOV 2021) * * * * * 237. Amend section 52.247–64 by— a. Revising the date of clause; b. Removing from paragraph (e)(4) introductory text the term ‘‘commercial items’’ and adding ‘‘commercial products or commercial services’’ in its place; ■ ■ ■ PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 * * * * * Alternate II (NOV 2021) * * * * * * * * * 53.212 * * Preference for Privately Owned U.S.Flag Commercial Vessels (NOV 2021) 52.244–6 Subcontracts for Commercial Products and Commercial Services. * 61037 [Amended] 238. Amend section 53.212 by— a. Revising the section heading; ■ b. Removing the term ‘‘(Rev.2/2012)’’ and adding ‘‘(Rev. NOV 2021)’’ in its place; and ■ c. Removing the terms ‘‘Commercial Items’’ and ‘‘commercial items’’ and adding ‘‘Commercial Products and Commercial Services’’ and ‘‘commercial products and commercial services’’ in their places, respectively. The revision reads as follows: ■ 53.212 Acquisition of commercial products and commercial services. * * 53.213 * * * [Amended] 239. Amend section 53.213 by— a. In paragraph (a): ■ i. Removing the date ‘‘(Rev. 2/2012)’’ and adding in its place ‘‘(Rev. NOV 2021)’’; and ■ ii. Removing the words ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in their place; and ■ b. In paragraph (f): ■ i. Removing the date ‘‘(Rev. 2/2012)’’ and adding ‘‘(Rev. NOV 2021)’’ in its place; and ■ ii. Removing the words ‘‘Commercial Items’’ and adding ‘‘Commercial Products and Commercial Services’’ in their place. ■ ■ 53.219 [Amended] 240. Amend section 53.219 by removing the date ‘‘(Rev. OCT 2020)’’ and adding ‘‘(Rev. NOV 2021)’’ in its place. ■ E:\FR\FM\04NOR2.SGM 04NOR2 61038 53.232 Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations [Amended] Secretariat Division at 202–501–4755. Please cite FAC 2022–01, FAR Case 2019–003. SUPPLEMENTARY INFORMATION: 241. Amend section 53.232 by removing the text ‘‘(Jul 2009)’’ and adding ‘‘(NOV 2021)’’ in its place. ■ 242. Amend section 53.300 in paragraph (a) by revising the entry for ‘‘SF 1449’’ to read as follows: ■ 53.300 Listing of Standard, Optional, and Agency forms. * * * (a) * * * * * TABLE 53–1—FORMS IN THE GSA FORMS LIBRARY Form No. Form title * SF 1449 ..... * * * * Solicitation/Contract/Order for Commercial Products and Commercial Services. * * * * * * * * * * [FR Doc. 2021–22144 Filed 11–3–21; 8:45 am] BILLING CODE 6820–EP–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 5 and 7 [FAC 2022–01; FAR Case 2019–003; Item II; Docket No. 2019–0029; Sequence No. 1] RIN 9000–AN86 Federal Acquisition Regulation: Consolidation and Substantial Bundling Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that requires providing public notices of determinations for substantial bundling and consolidation of contract requirements. DATES: Effective December 6, 2021. FOR FURTHER INFORMATION CONTACT: Ms. Dana Bowman, Procurement Analyst, at 202–803–3188, or by email at dana.bowman@gsa.gov. For information pertaining to status or publication schedules, contact the Regulatory lotter on DSK11XQN23PROD with RULES2 SUMMARY: VerDate Sep<11>2014 20:16 Nov 03, 2021 Jkt 256001 I. Background DoD, GSA, and NASA published a proposed rule at 85 FR 23299 on April 27, 2020, to implement section 863 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (Pub. L. 114–92, codified at 15 U.S.C. 644(e)(3) and 15 U.S.C. 657q(c)(2)) and the Small Business Administration (SBA) implementing regulations. SBA published a final rule to implement section 863 on November 29, 2019, at 84 FR 65647. Section 863 requires public notification of an agency’s determination to substantially bundle or consolidate contract requirements. Specifically, publication of a notice is required when the head of a contracting agency determines that an acquisition plan for a procurement involves substantial bundling of contract requirements. The head of the contracting agency must publish a notice on a public website that such determination has been made not later than 7 days after making the determination. Any solicitation for a procurement related to the acquisition plan may not be published earlier than 7 days after such notice is published. A justification for the determination must be published with the solicitation. The justification must address the specific benefits anticipated, any alternative approaches, impediments to participation by small business concerns as prime contractors, and actions designed to maximize participation of small business concerns as subcontractors (see 15 U.S.C. 644(e)(3)(A) through (C)). Section 863 also requires publication of a notice when the senior procurement executive (SPE) or chief acquisition officer (CAO) makes a determination that an acquisition strategy involving consolidation of contract requirements is necessary and justified under 15 U.S.C. 657q(c)(2)(A). The SPE or CAO must publish a notice on a public website that such determination has been made not later than 7 days after making the determination. Any solicitation for a procurement related to the acquisition strategy may not be published earlier than 7 days after such notice is published. A justification for the determination must be published with the solicitation. The justification must include the information in 15 U.S.C. 657q(c)(1)(A) through (E). As a result, this final rule amends FAR 7.107–5, Notifications, to require PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 the publication on the Governmentwide Point of Entry of a notice of substantial bundling or of a notice of consolidation, as required in the SBA final rule. This section also contains references to the required content of the consolidation determination (at FAR 7.107–2) and the substantial bundling determination (at FAR 7.107–4). Four respondents submitted public comments in response to the proposed rule. II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. A discussion of the comments received and any changes made to the rule as a result of the public comments are provided as follows: A. Summary of Significant Changes From the Proposed Rule There are no significant changes made to the final rule. B. Analysis of Public Comments 1. Support for the Rule Comment: One respondent expressed support for the rule. Response: The Councils acknowledge the respondent’s support for the rule. 2. More Time Between Publication of Notice and Solicitation Issuance Comment: Two respondents expressed concern about the 7-day notification period, stating that it is not enough time for small businesses to plan and strategize. The respondents requested the notification posting period be extended for a longer time, at least 2 weeks. Response: This FAR rule uses the same time period set forth in SBA’s implementation of section 863 after SBA considered the length of the notification period. 3. Location of Notices Comment: One respondent suggested that the existing requirement to publish the notification on a ‘‘public site’’ is too vague and that compliance could be satisfied by posting on an agency’s social media platform. The respondent recommends that all notifications should be posted on beta.sam via the Governmentwide point of entry (GPE). Response: This rule implements section 863 of the NDAA for FY 2016 (Pub. L. 114–92) and the SBA implementing regulations (13 CFR 125), which requires agencies to provide public notices on the GPE of determinations for substantial bundling E:\FR\FM\04NOR2.SGM 04NOR2

Agencies

[Federal Register Volume 86, Number 211 (Thursday, November 4, 2021)]
[Rules and Regulations]
[Pages 61017-61038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22144]



[[Page 61017]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 
18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 37, 38, 39, 42, 43, 
44, 46, 47, 49, 52, and 53

[FAC 2022-01; FAR Case 2018-018; Item I; Docket No. FAR-2018-0018, 
Sequence No. 1]
RIN 9000-AN76


Federal Acquisition Regulation: Revision of Definition of 
``Commercial Item''

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a section of the John 
S. McCain National Defense Authorization Act for Fiscal Year 2019 to 
change the definition of ``commercial item.''

DATES: Effective December 6, 2021.

FOR FURTHER INFORMATION CONTACT: Ms. Zenaida Delgado, Procurement 
Analyst, at 202-969-7207 or by email at [email protected], for 
clarification of content. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755 or [email protected]. Please cite FAC 2022-01, FAR Case 
2018-018.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule at 85 FR 65610 on 
October 15, 2020, to amend the FAR definition of ``commercial item'' to 
implement section 836 of the John S. McCain National Defense 
Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232). 
Section 836 separates the definition of ``commercial item'' at 41 
U.S.C. 103 into the definitions of ``commercial product'' and 
``commercial service,'' at 41 U.S.C. 103 and 103a.
    Splitting the definition of ``commercial item'' into the 
definitions of ``commercial product'' and ``commercial service'' was a 
recommendation made by the independent panel created by section 809 of 
the NDAA for FY 2016 (Pub. L. 114-92). The panel was created to review 
and improve the functioning of the defense acquisition system and 
eliminate any regulations found unnecessary to achieve such 
improvements. The panel recommended the splitting of the definition of 
``commercial item'' to better ``reflect the significant roles services 
and commercial services play today in the DoD procurement budget.'' See 
recommendation on pages 29 to 30 of Volume 1 of 3 dated January 2018 of 
the Report of the Advisory Panel on Streamlining and Codifying 
Acquisition Regulations, available at https://section809panel.org/wp-content/uploads/2018/04/Sec809Panel_Vol1-Report_Jan18_REVISED_2018-03-14.pdf.
    The change in this final rule resolves the issue the Section 809 
Panel cites, which is that the ``acquisition workforce has faced issues 
with inconsistent interpretations of policy, confusion over how to 
identify eligible commercial products and services''. Bifurcating the 
definition of ``commercial item'' into ``commercial product'' and 
``commercial service'' is a way to provide clarity for the acquisition 
workforce, which may result in greater engagement with the commercial 
marketplace.
    It is important to note that the amendment to separate ``commercial 
item'' into ``commercial product'' and ``commercial service'' does not 
expand or shrink the universe of products or services the Government 
may procure using FAR part 12, nor does it change the terms and 
conditions with which contractors must comply.
    The following summarizes the changes made to the FAR:
    1. Removed from FAR part 2 the definition of ``commercial item'' 
and replaced it with the definitions of ``commercial product'' and 
``commercial service'' in accordance with the NDAA with only minor 
revisions for clarification to align with that which is currently in 
the FAR. The clarification in paragraph 3(ii) of the definition of 
``commercial product'' has been in FAR part 2 since the definition of 
``commercial item'' was incorporated by FAR case 94-790, Acquisition of 
Commercial Items, in 1995. Paragraphs 2(i) and 2(ii) of the definition 
of ``commercial service'' are also long standing; they stem from a FAR 
change published October 22, 2001, which was revised slightly in a FAR 
change published June 18, 2004.
    2. Replaced all instances of ``non-commercial'' and 
``noncommercial'' with ``other than commercial'' as it relates to this 
rule. This editorial change provides consistent language throughout the 
FAR.
    3. Removed FAR 12.102(g), and a corresponding reference at FAR 
37.601(c), as obsolete. FAR 12.102(g) only applied to contracts or 
orders entered into before November 23, 2013.
    4. Added the definition of ``established price'' at FAR 16.001 to 
be consistent with the term as defined at the FAR clauses at FAR 
52.216-2, Economic Price Adjustment--Standard Supplies, and 52.216-3, 
Economic Price Adjustment--Semistandard Supplies. This is an editorial 
change for consistency to have the definition in both the clause and 
the corresponding FAR part.
    5. Made conforming changes to cross references, and the following 
Standard Forms (SF): SF 294, Subcontracting Report for Individual 
Contracts; SF 1443, Contractor's Request for Progress Payment; and SF 
1449, Solicitation/Contract/Order for Commercial Products and 
Commercial Services. Also, minor editorial changes were made as needed 
throughout the FAR. These revisions do not impact terms and conditions 
of commercial contracts or how the Government procures commercial 
products or commercial services.
    Three respondents submitted comments on the proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule. A discussion of the comments and the 
changes made to the rule as a result of those comments are provided as 
follows:

A. Summary of Significant Changes

    There are no significant changes from the proposed rule.

B. Analysis of Public Comments

    Of the three responses received, none provided negative comments on 
the rule, although they suggested changes as described below. No 
changes resulted from the public comments.
    Comment: A respondent expressed that paragraph (1) of the 
commercial product definition in the proposed rule is not consistent 
with the language in 41 U.S.C. 103(1). This respondent stated that 
while the wording for both definitions is very similar, the structure 
of the definition as promulgated in current law indicates it was the 
intent of Congress that for a product to meet the definition of a 
commercial product under paragraph (1), it must have been sold, leased, 
or licensed, or offered for sale, lease, or license, to the general 
public.

[[Page 61018]]

    Response: The Councils note that the respondent's quoted definition 
is similar to the statutory definition, and to the definition used in 
the proposed rule. No change is necessary.
    Comment: Two respondents suggested to explicitly include commercial 
services under the definition of commercial-off-the-shelf (``COTS'') 
items to provide the Government access to the broadest range of service 
providers. One respondent pointed to the following benefits: increase 
competition and allow Government customers quicker access to required 
commercial services. A respondent suggested to, at least, clarify that 
commercial wireless telecommunications offerings constitute a 
``commercial product'' and thus can satisfy all definitional elements 
of COTS items.
    Response: The Councils cannot accept the suggestions because they 
are not consistent with the statute being implemented. Section 836 of 
the NDAA for FY 2019 did not modify the definition of COTS item.

C. Other Changes

    Other changes made in the final rule are as follows:
     Revisions were made to account for additional instances of 
the term ``commercial item'' in the FAR after the proposed rule was 
published in the following sections: FAR 9.110-4(b), 9.110-5, 9.405-1, 
39.205(a)(3) and (c)(3), 43.105(c), 52.209-14(d)(1), 52.229-13(c), and 
52.229-14(c).
     Three changes missed in the proposed rule were added as 
follows: the heading of FAR subpart 12.1, the word ``commercial'' at 
FAR 15.601, and the inclusion of ``commercial products'' in 52.212-
5(b)(36).
     Prescriptive language was relocated from the introductory 
text for the FAR clauses at 52.216-2, 52.216-3, and 52.216-4 to FAR 
16.203-4(a)(4), (b)(6), and (c)(5), respectively, to be consistent with 
FAR drafting conventions.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), or for Commercial Services

    This rule does not create new solicitation provisions or contract 
clauses. This rule merely replaces the term ``commercial item(s)'' with 
``commercial product(s),'' ``commercial service(s),'' ``commercial 
product(s) or commercial service(s),'' or ``commercial product(s) and 
commercial service(s)'' in the FAR including in part 52, as 
appropriate. This rule does not impose any new requirements on 
contracts at or below the SAT or for commercial products, including 
COTS items, or for commercial services.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD, GSA, and NASA will 
send the rule and the ``Submission of Federal Rules Under the 
Congressional Review Act'' form to each House of the Congress and to 
the Comptroller General of the United States. A major rule cannot take 
effect until 60 days after it is published in the Federal Register. The 
Office of Information and Regulatory Affairs (OIRA) in the Office of 
Management and Budget has determined that this is not a major rule 
under 5 U.S.C. 804.

VI. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The FRFA is summarized as follows:

    This final rule amends the FAR to change the definition of 
``commercial item'' by splitting it into the definitions of 
``commercial product'' and ``commercial service''.
    The objective is to implement section 836 of the John S. McCain 
NDAA for FY19 (Pub. L. 115-232). This is consistent with the 
recommendations by the independent panel created by section 809 of 
the NDAA for FY 2016 (Pub. L. 114-92). This case implements 
amendments to 41 U.S.C. 103 and 103a. The legal basis for this rule 
is 40 U.S.C. 121(c), 10 U.S.C. chapter 137, and 51 U.S.C. 20113.
    There were no significant issues raised by the public comments 
in response to the initial regulatory flexibility analysis.
    The final rule impacts all entities that do business with the 
Federal Government, including the over 327,458 small business 
registrants in the System for Award Management. However, the rule 
does not implement any requirements with which small entities must 
comply. This rule splits the definition of ``commercial item'' into 
the definitions of ``commercial product'' and ``commercial 
service''.
    The final rule does not include additional reporting or record 
keeping requirements.
    There are no available alternatives to the final rule to 
accomplish the desired objective of the statute.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat Division. The Regulatory Secretariat Division 
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of 
the Small Business Administration.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C 3501-3521) applies; however, 
the changes to the FAR and the updates to the information collections 
do not impose new information collection burden. The changes do not 
impose additional, or change any existing, information collection 
requirements to the paperwork burden previously approved under the 
following OMB Control Numbers: 9000-0007, Subcontracting Plans; 9000-
0018, Federal Acquisition Regulation Part 3: Improper Business 
Practices and Personal Conflicts of Interest; 9000-0193, FAR Part 9 
Responsibility Matters; 9000-0097, Federal Acquisition Regulation Part 
4 Requirements; 9000-0136, Commercial Item Acquisitions; 9000-0034, 
Examination of Records by Comptroller General and Contract Audit; 9000-
0013, Certified Cost or Pricing Data and Data Other Than Certified Cost 
or Pricing Data; 9000-0048, Authorized Negotiators and Integrity of 
Unit Prices; 9000-0010, Progress Payments, SF 1443; 9000-0024, Buy 
American, Trade Agreements, and Duty-Free Entry; 9000-0061, 
Transportation Requirements; 9000-0068, Economic Price Adjustment; 
9000-0070, Payments; 9000-0138, Contract Financing; 9000-0188, 
Combating Trafficking in Persons; 9000-0197, Use of Products and 
Services of Kaspersky Lab; 9000-0198, Violations of Arms Control 
Treaties or Agreements; and 1615-0092, E-Verify Program.

List of Subjects in 48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 
12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 
37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53

    Government procurement.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 2, 3, 4, 5, 6, 
7,

[[Page 61019]]

8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 
30, 31, 32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 as set forth 
below:

0
1. The authority citation for 48 CFR parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 
10, 11, 12, 13, 14, 15, 16, 18, 19, 22, 23, 25, 26, 27, 28, 29, 30, 31, 
32, 37, 38, 39, 42, 43, 44, 46, 47, 49, 52, and 53 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.102   [Amended]

0
2. Amend section 1.102 by removing from paragraph (b)(1)(i) the phrase 
``commercial products and services;'' and adding the phrase 
``commercial products and commercial services;'' in its place.


1.102-2   [Amended]

0
3. Amend section 1.102-2 by removing from paragraph (a)(4) the phrase 
``commercial products and services'' and adding the phrase ``commercial 
products and commercial services'' in its place.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
4. Amend section 2.101 in paragraph (b)(2) by--
0
a. In the defined term ``Biobased product'', removing the phrase 
``commercial or industrial product'' and adding the phrase ``commercial 
product or industrial product'' in its place;
0
b. In the defined term ``Commercial component'', removing the words 
``commercial item'' and adding the words ``commercial product'' in its 
place;
0
c. In the defined term ``Commercial computer software'', removing the 
words ``commercial item'' and adding the words ``commercial product or 
commercial service'' in its place.
0
d. Removing the defined term ``Commercial item'';
0
e. Adding the defined terms ``Commercial product'' and ``Commercial 
service'' in alphabetical order; and
0
f. In the defined term ``Commercially available off-the-shelf (COTS) 
item'', removing from paragraph (1)(i) ``commercial item'' and 
``definition in this section'' and adding ``commercial product'' and 
``definition of ``commercial product'' in this section'' in their 
places, respectively.
    The additions read as follows:


2.101   Definitions.

* * * * *
    (b) * * *
    (2) * * *
    Commercial product means--
    (1) A product, other than real property, that is of a type 
customarily used by the general public or by nongovernmental entities 
for purposes other than governmental purposes, and--
    (i) Has been sold, leased, or licensed to the general public; or
    (ii) Has been offered for sale, lease, or license to the general 
public;
    (2) A product that evolved from a product described in paragraph 
(1) of this definition through advances in technology or performance 
and that is not yet available in the commercial marketplace, but will 
be available in the commercial marketplace in time to satisfy the 
delivery requirements under a Government solicitation;
    (3) A product that would satisfy a criterion expressed in paragraph 
(1) or (2) of this definition, except for--
    (i) Modifications of a type customarily available in the commercial 
marketplace; or
    (ii) Minor modifications of a type not customarily available in the 
commercial marketplace made to meet Federal Government requirements. 
``Minor modifications'' means modifications that do not significantly 
alter the nongovernmental function or essential physical 
characteristics of an item or component, or change the purpose of a 
process. Factors to be considered in determining whether a modification 
is minor include the value and size of the modification and the 
comparative value and size of the final product. Dollar values and 
percentages may be used as guideposts, but are not conclusive evidence 
that a modification is minor;
    (4) Any combination of products meeting the requirements of 
paragraph (1), (2), or (3) of this definition that are of a type 
customarily combined and sold in combination to the general public;
    (5) A product, or combination of products, referred to in 
paragraphs (1) through (4) of this definition, even though the product, 
or combination of products, is transferred between or among separate 
divisions, subsidiaries, or affiliates of a contractor; or
    (6) A nondevelopmental item, if the procuring agency determines the 
product was developed exclusively at private expense and sold in 
substantial quantities, on a competitive basis, to multiple State and 
local governments or to multiple foreign governments.
    Commercial service means--
    (1) Installation services, maintenance services, repair services, 
training services, and other services if--
    (i) Such services are procured for support of a commercial product 
as defined in this section, regardless of whether such services are 
provided by the same source or at the same time as the commercial 
product; and
    (ii) The source of such services provides similar services 
contemporaneously to the general public under terms and conditions 
similar to those offered to the Federal Government;
    (2) Services of a type offered and sold competitively in 
substantial quantities in the commercial marketplace based on 
established catalog or market prices for specific tasks performed or 
specific outcomes to be achieved and under standard commercial terms 
and conditions. For purposes of these services--
    (i) Catalog price means a price included in a catalog, price list, 
schedule, or other form that is regularly maintained by the 
manufacturer or vendor, is either published or otherwise available for 
inspection by customers, and states prices at which sales are 
currently, or were last, made to a significant number of buyers 
constituting the general public; and
    (ii) Market prices means current prices that are established in the 
course of ordinary trade between buyers and sellers free to bargain and 
that can be substantiated through competition or from sources 
independent of the offerors; or
    (3) A service referred to in paragraph (1) or (2) of this 
definition, even though the service is transferred between or among 
separate divisions, subsidiaries, or affiliates of a contractor.
* * * * *

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST


3.104-1   [Amended]

0
5. In section 3.104-1 amend the definition of ``Contractor bid or 
proposal information'' in paragraph (1) by removing ``10 U.S.C. 
2306a(h)'' and adding in its place ``10 U.S.C. 2306a(h)(1)'' and 
removing ``41 U.S.C. 3501(a)(2)'' and adding ``41 U.S.C. 3501(a)(1)'' 
in its place.

0
6. Amend section 3.104-9 by revising the introductory text to read as 
follows:


3.104-9   Contract clauses.

    In solicitations and contracts that exceed the simplified 
acquisition threshold, other than those for commercial products or 
commercial services, insert the clauses at--
* * * * *

[[Page 61020]]

3.404   [Amended]

0
7. Amend section 3.404 by removing ``commercial items'' and adding 
``commercial products or commercial services'' in its place.

0
8. Amend section 3.502-2 by revising paragraph (i) introductory text to 
read as follows:


3.502-2   Subcontractor kickbacks.

* * * * *
    (i) Requires each contracting agency to include in each prime 
contract, other than for commercial products or commercial services, 
exceeding $150,000, a requirement that the prime contractor shall--
* * * * *


3.502-3   [Amended]

0
9. Amend section 3.502-3 by removing ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


3.503-2   [Amended]

0
10. Amend section 3.503-2 by removing ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


3.1004   [Amended]

0
11. Amend section 3.1004 by removing from paragraph (b)(1) ``commercial 
item'' and ``FAR 52.203-14'' and adding ``commercial product or 
commercial service'' and ``52.203-14'' in their places, respectively.

PART 4--ADMINISTRATIVE AND INFORMATION MATTERS


4.203   [Amended]

0
12. Amend section 4.203 by removing from paragraph (a) the term 
``Commercial Items'' and adding the term ``Commercial Products and 
Commercial Services'' in its place.


4.605   [Amended]

0
13. Amend section 4.605 by removing from paragraph (b) the term 
``Commercial Items'' and adding the term ``Commercial Products and 
Commercial Services'' in its place.


4.1103   [Amended]

0
14. Amend section 4.1103 by removing from paragraph (a)(3) the term 
``Commercial Items'' and adding the term ``Commercial Products and 
Commercial Services'' in its place.


4.1201   [Amended]

0
15. Amend section 4.1201 by removing from paragraph (d) the term 
``commercial items'' and adding the term ``commercial products or 
commercial services'' in its place.


4.1202   [Amended]

0
16. Amend section 4.1202 by removing from paragraph (a) introductory 
text the terms ``commercial item solicitations'' and ``FAR part 12'' 
and adding the terms ``solicitations for commercial products or 
commercial services'' and ``part 12'' in their places, respectively.


4.1902   [Amended]

0
17. Amend section 4.1902 by removing the text ``commercial items'' and 
adding ``commercial products or commercial services,'' in its place.

PART 5--PUBLICIZING CONTRACT ACTIONS


5.202   [Amended]

0
18. Amend section 5.202 by removing from paragraph (a)(10) ``commercial 
items'' and adding ``commercial products'' in its place.


5.203   [Amended]

0
19. Amend section 5.203 by removing from paragraphs (a) introductory 
text, (b), and (c) the term ``commercial items'' and adding 
``commercial products or commercial services'' in their places, 
respectively.

PART 6--COMPETITION REQUIREMENTS


6.001   [Amended]

0
20. Amend section 6.001 by removing from paragraph (a) ``commercial 
items'' and adding ``commercial products or commercial services'' in 
its place.


6.302-5   [Amended]

0
21. Amend section 6.302-5 by:
0
a. Removing from paragraph (a)(2)(ii) ``commercial item'' and adding 
``commercial product'' in its place; and
0
b. Removing from paragraph (c)(3) ``brand-name commercial items'' and 
adding ``brand name commercial products'' in its place.

0
22. Amend section 6.502 by--
0
a. Revising paragraph (a);
0
b. Removing from paragraph (b)(1)(i) the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place;
0
c. Removing from paragraph (b)(1)(iv) the term ``commercial items or'' 
and adding ``commercial products or commercial services or 
unnecessarily restricting'' in its place;
0
d. Removing from paragraph (b)(2)(ii) the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place; 
and
0
e. Removing from paragraphs (b)(2)(v) and (vi) the term ``commercial 
items'' and adding ``commercial products, commercial services,'' in its 
place.
    The revision reads as follows:


6.502   Duties and responsibilities.

    (a) Agency and procuring activity advocates for competition are 
responsible for--
    (1) Promoting the acquisition of commercial products and commercial 
services;
    (2) Promoting full and open competition;
    (3) Challenging requirements that are not stated in terms of 
functions to be performed, performance required, or essential physical 
characteristics;
    (4) Challenging barriers to the acquisition of commercial products 
and commercial services; and
    (5) Challenging barriers to full and open competition such as 
unnecessarily restrictive statements of work, unnecessarily detailed 
specifications, and unnecessarily burdensome contract clauses.
* * * * *

PART 7--ACQUISITION PLANNING


7.102   [Amended]

0
23. Amend section 7.102 by removing from paragraph (a)(1) the phrase 
``commercial items or, to the extent that commercial items suitable'' 
and adding ``commercial products or commercial services, or to the 
extent that commercial products suitable'' in its place.


7.103   [Amended]

0
24. Amend section 7.103 by removing from paragraph (b) the phrase 
``commercial items, or to the extent that commercial items suitable'' 
and adding ``commercial products or commercial services, or to the 
extent that commercial products suitable'' in its place.


7.105   [Amended]

0
25. Amend section 7.105 by removing from paragraph (b)(14)(i) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES


8.402   [Amended]

0
26. Amend section 8.402 by--
0
a. Removing from paragraph (a) the term ``commercial supplies and 
services'' and adding ``commercial supplies and commercial services'' 
in its place; and
0
b. Removing from paragraph (f)(1) the phrase ``commercial items (part 
12),''

[[Page 61021]]

and adding ``commercial products or commercial services (part 12),'' in 
its place.

PART 9--CONTRACTOR QUALIFICATIONS


9.106-1   [Amended]

0
27. Amend section 9.106-1 by removing from paragraph (a) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.


9.109-5   [Amended]

0
28. Amend section 9.109-5 by removing the text ``commercial items'' and 
adding ``commercial products or commercial services'' in its place.


9.110-4   [Amended]

0
29. Amend section 9.110-4 by removing from paragraph (b) ``commercial 
items'' and adding ``commercial products and commercial services'' in 
its place.


9.110-5   [Amended]

0
30. Amend section 9.110-5 by removing the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.


9.405-1   [Amended]

0
31. Amend section 9.405-1 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


9.405-2   [Amended]

0
32. Amend section 9.405-2 in paragraph (b) introductory text, in the 
fourth sentence, by removing ``commercial items'' and adding 
``commercial products'' in its place.

PART 10--MARKET RESEARCH

0
33. Amend section 10.001 by--
0
a. Removing from paragraph (a)(2)(v) the phrase ``for a noncommercial 
item'' and adding ``for other than a commercial product or commercial 
service'' in its place;
0
b. Removing from paragraph (a)(3)(ii) introductory text the phrase 
``commercial items or, to the extent commercial items suitable'' and 
adding ``commercial products or commercial services, or, to the extent 
commercial products suitable'' in its place;
0
c. Removing from paragraph (a)(3)(iii) the term ``commercial items'' 
and adding ``commercial products'' in its place;
0
d. Removing from paragraph (a)(3)(iv) the term ``commercial items'' and 
adding ``commercial products or commercial services'' in its place; and
0
e. Revising paragraph (d).
    The revision reads as follows:


10.001   Policy.

* * * * *
    (d) See 10.003 for the requirement for a prime contractor to 
perform market research in contracts in excess of $6 million, other 
than contracts for the acquisition of commercial products or commercial 
services (section 826 of Pub. L. 110-181).


10.002   [Amended]

0
34. Amend section 10.002 by--
0
a. Removing from paragraph (b) introductory text the term ``commercial 
items'' and adding ``commercial products, commercial services,'' in its 
place;
0
b. Removing from paragraph (b)(1) introductory text the word ``item'' 
and adding ``product or service'' in its place;
0
c. Removing from paragraphs (b)(1)(i)(A), (B), and (C) the word 
``Items'' and adding ``Products or services'' in its place;
0
d. Removing from paragraph (b)(1)(ii) the word ``items'' and adding 
``products or services'' in its place;
0
e. Removing from paragraph (c) the phrases ``indicates commercial'' and 
``permit commercial'' and adding ``indicates commercial products, 
commercial services,'' and ``permit commercial products, commercial 
services,'' in their places, respectively; and
0
f. Removing from paragraph (d)(1) the phrases ``item or'' and 
``commercial item'' and adding ``product or'' and ``commercial product 
or commercial service'' in their places, respectively.

0
35. Revise section 10.003 to read as follows:


10.003   Contract clause.

    The contracting officer shall insert the clause at 52.210-1, Market 
Research, in solicitations and contracts over $6 million, other than 
solicitations and contracts for the acquisition of commercial products 
or commercial services.

PART 11--DESCRIBING AGENCY NEEDS


11.002   [Amended]

0
36. Amend section 11.002 by--
0
a. Removing from paragraph (a)(2)(ii) the phrase ``commercial items, 
or, to the extent that commercial items suitable'' and adding 
``commercial products or commercial services or, to the extent that 
commercial products suitable'' in its place;
0
b. Removing from paragraphs (a)(2)(iii) and (iv) the term ``commercial 
items'' and adding ``commercial products, commercial services,'' in its 
place; and
0
c. Removing from paragraph (a)(2)(v) the terms ``commercial items or,'' 
and ``commercial items suitable'' and adding ``commercial products or 
commercial services or,'' and ``commercial products suitable'' in their 
places, respectively.


11.302   [Amended]

0
37. Amend section 11.302 by--
0
a. Removing from paragraph (b)(1) the terms ``acquiring other'' and 
``commercial items'' and adding ``acquiring products other'' and 
``commercial products as defined in 2.101'' in their places, 
respectively;
0
b. Removing from paragraph (b)(2) the terms ``commercial items'' and 
``the item'' and adding ``commercial products'' and ``the product'' in 
their places, respectively; and
0
c. Removing from paragraph (c)(1) the term ``commercial items'' and 
adding ``commercial products'' in its place.


11.304   [Amended]

0
38. Amend section 11.304 by removing the text ``commercial items'' and 
adding ``commercial products'' in its place.

PART 12--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

0
39. Revise the part heading to read as set forth above.


12.000   [Amended]

0
40. Amend section 12.000 by--
0
a. In the first sentence, removing the term ``commercial items'' and 
adding ``commercial products, including commercial components, and 
commercial services'' in its place; and
0
b. In the second sentence, removing the terms ``commercial items'' and 
``commercial items and components'' and adding ``commercial products 
and commercial services'' in their place.


12.001   [Amended]

0
41. Amend section 12.001 by removing the term ``commercial items'' and 
adding ``commercial products or commercial services'' in its place.

0
42. Revise the heading of subpart 12.1 to read as follows:

Subpart 12.1--Acquisition of Commercial Products and Commercial 
Services


12.101   [Amended]

0
43. Amend section 12.101 by removing the term ``commercial items'' 
wherever it appears and adding

[[Page 61022]]

``commercial products, commercial services,'' in its place.


12.102   [Amended]

0
44. Amend section 12.102 by--
0
a. Removing from paragraph (a) the phrase ``the definition of 
commercial items'' and adding ``the definitions of ``commercial 
product'' or ``commercial service'' in its place;
0
b. Removing from paragraph (c) the term ``commercial items'' wherever 
it appears and adding ``commercial products or commercial services'' in 
its place;
0
c. Removing from paragraph (d) the phrase ``commercial item in section 
2.101'' and adding ``commercial product'' in its place;
0
d. Removing from paragraphs (e) and (f)(1) the term ``commercial 
items'' and adding ``commercial products or commercial services'' in 
its place;
0
e. In paragraph (f)(2) introductory text:
0
i. Removing the term ``for an item'' and adding ``for a product'' in 
its place; and
0
ii. Removing the term ``commercial item'' wherever it appears and 
adding ``commercial product or commercial service'' in its place;
0
f. Removing from paragraph (f)(2)(i) ``see Subpart 30.2'' and adding 
``see subpart 30.2'' in its place; and
0
g. Removing paragraph (g).


12.103   [Amended]

0
45. Amend section 12.103 by removing the text ``commercial items'' and 
``12.504);'' and adding ``commercial products'' and ``12.504).'' in 
their places, respectively.

0
46. Revise the heading of subpart 12.2 to read as follows:

Subpart 12.2--Special Requirements for the Acquisition of 
Commercial Products and Commercial Services


12.201   [Amended]

0
47. Amend section 12.201 by removing ``commercial items'' wherever it 
appears and adding ``commercial products and commercial services'' in 
its place.


12.202   [Amended]

0
48. Amend section 12.202 by--
0
a. Removing from paragraph (a) the term ``commercial items'' and adding 
``commercial products and commercial services'' in its place; and
0
b. In paragraph (b):
0
i. Removing in the first sentence the terms ``commercial items'' and 
``products or services'' and adding ``commercial products or commercial 
services'' and ``products or commercial services'' in their places, 
respectively; and
0
ii. Removing in the second sentence the terms ``commercial item'' and 
``type of product or service'' and adding ``commercial product or 
commercial service'' and ``type of commercial product or commercial 
service'' in their places, respectively.


12.203   [Amended]

0
49. Amend section 12.203 in paragraph (a) by:
0
a. In the first sentence, removing the term ``commercial items'' and 
adding in its place the phrase ``commercial products and commercial 
services''; and
0
b. In the second and third sentences, removing the term ``commercial 
items'' wherever it appears and adding in its place the phrase 
``commercial products or commercial services''.

0
50. Amend section 12.204 by revising paragraph (a) to read as follows:


12.204   Solicitation/contract form.

    (a)(1) The contracting officer shall use the Standard Form 1449, 
Solicitation/Contract/Order for Commercial Products and Commercial 
Services, if--
    (i) The acquisition is expected to exceed the simplified 
acquisition threshold;
    (ii) A paper solicitation or contract is being issued; and
    (iii) Procedures at 12.603 are not being used.
    (2) Use of the SF 1449 is nonmandatory but encouraged for 
commercial acquisitions not exceeding the simplified acquisition 
threshold.
* * * * *


12.205   [Amended]

0
51. Amend section 12.205 by--
0
a. In paragraph (a):
0
i. In the first sentence, removing the word ``product''; and
0
ii. In the second sentence, removing the phrase ``product literature 
from offerors of commercial items'' and adding ``product or service 
literature from offerors of commercial products or commercial 
services'' in its place;
0
b. In paragraph (b):
0
i. In the first sentence, removing the phrases ``more than one 
product'' and ``commercial items'' and adding ``multiple offers'' and 
``commercial products or commercial services'' in their places, 
respectively; and
0
ii. In the second sentence, removing the phrase ``product as a separate 
offer'' and adding ``offer separately'' in its place; and
0
c. Removing from paragraph (c) the words ``commercial items'' and 
adding ``commercial products or commercial services'' in their place.


12.206   [Amended]

0
52. Amend section 12.206 by removing the text ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.


12.207   [Amended]

0
53. Amend section 12.207 by removing from paragraphs (a) and (e) the 
words ``commercial items'' and adding ``commercial products or 
commercial services'' in their places.

0
54. Revise section 12.208 to read as follows:


12.208   Contract quality assurance.

    Contracts for commercial products shall rely on contractors' 
existing quality assurance systems as a substitute for Government 
inspection and testing before tender for acceptance unless customary 
market practices for the commercial product being acquired include in-
process inspection. Any in-process inspection by the Government shall 
be conducted in a manner consistent with commercial practice. The 
Government shall rely on the contractor to accomplish all inspection 
and testing needed to ensure that commercial services acquired conform 
to contract requirements before they are tendered to the Government.


12.209   [Amended]

0
55. Amend section 12.209 by removing the words ``commercial items'' and 
``Commercial item'' and adding ``commercial products and commercial 
services'' and ``Commercial product and commercial service'' in their 
places, respectively.


12.210   [Amended]

0
56. Amend section 12.210 by removing the text ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.


12.211   [Amended]

0
57. Amend section 12.211 by:
0
a. Removing the text ``commercial item'' and adding ``commercial 
product'' in its place; and
0
b. Removing the text ``commercial items'' wherever it appears and 
adding ``commercial products'' in its place.


12.214   [Amended]

0
58. Amend section 12.214 by--
0
a. Removing from the first sentence ``commercial items'' and adding 
``commercial products or commercial services'' in its place;
0
b. Removing from the second sentence ``See 48 CFR 30.201-1'' and 
``commercial items'' and adding ``See 30.201-1'' and ``commercial 
products or

[[Page 61023]]

commercial services'' in their places, respectively; and
0
c. Removing from the last sentence ``in 48 CFR 30.201'' and adding ``in 
30.201'' in its place.

0
59. Revise the heading of subpart 12.3 to read as follows:

Subpart 12.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Products and Commercial Services


12.300   [Amended]

0
60. Amend section 12.300 by removing the text ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.

0
61. Amend section 12.301 by--
0
a. Revising the section heading;
0
b. Removing from paragraphs (a) introductory text and (a)(1) the text 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
c. Removing from paragraph (b) introductory text the text ``commercial 
items'' wherever it appears and adding ``commercial products or 
commercial services'' in its place;
0
d. In paragraphs (b)(1) and (2):
0
i. Removing in the headings the text ``Commercial Items'' and adding 
``Commercial Products and Commercial Services'' in its place; and
0
ii. Removing the text ``commercial items'' and adding ``commercial 
products or commercial services'' in its place; and
0
e. Removing in the third sentence of paragraph (b)(2) the text 
``Subpart 1.4'' and adding ``subpart 1.4'' in its place;
0
f. Removing from paragraph (b)(3) heading the text ``Commercial Items'' 
and adding ``Commercial Products and Commercial Services'' in its 
place;
0
g. In paragraph (b)(4):
0
i. In the heading, removing the text ``Commercial Items'' and adding 
``Commercial Products and Commercial Services'' in its place;
0
ii. Removing the text ``commercial items'' wherever it appears and 
adding ``commercial products or commercial services'' in its place; and
0
iii. Removing the text ``Part 15'' and adding ``part 15'' in its place;
0
h. In paragraph (c)(1):
0
i. Removing the term ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in its place; and
0
ii. Removing the term ``commercial items'' and adding ``commercial 
products or commercial services'' in its place;
0
i. Removing from paragraph (d) introductory text the text ``commercial 
items'' wherever it appears and adding ``commercial products or 
commercial services'' in its place; and
0
j. Removing from paragraph (f) the text ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


12.301   Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

* * * * *

0
62. Amend section 12.302 by--
0
a. Revising the section heading;
0
b. In paragraph (a):
0
i. Removing the text ``commercial items'' wherever it appears and 
adding ``commercial products and commercial services'' in its place; 
and
0
ii. Removing the text ``Commercial Items'' wherever it appears and 
adding ``Commercial Products and Commercial Services'' in its place;
0
c. In paragraph (b):
0
i. Removing the text ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in its place; and
0
ii. Removing the text ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in its place; and
0
d. Removing from paragraph (c) ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


12.302   Tailoring of provisions and clauses for the acquisition of 
commercial products and commercial services.

* * * * *


12.303   [Amended]

0
63. Amend section 12.303 by--
0
a. Removing from the introductory text the term ``commercial items'' 
and adding ``commercial products or commercial services'' in its place;
0
b. Removing from paragraph (c)(1) the text ``Commercial Items'' and 
adding ``Commercial Products and Commercial Services'' in its place;
0
c. Removing from paragraph (c)(3) the text ``and Executive Orders'' and 
adding ``or Executive Orders--Commercial Products and Commercial 
Services'' in its place; and
0
d. Removing from paragraphs (e)(1), (3), and (4) the term ``Commercial 
Items'' and adding ``Commercial Products and Commercial Services'' in 
its place.

0
64. Revise the heading for subpart 12.4 to read as follows:

Subpart 12.4--Unique Requirements Regarding Terms and Conditions 
for Commercial Products and Commercial Services


12.401   [Amended]

0
65. Amend section 12.401 by--
0
a. In paragraph (a), removing the term ``Commercial Items'' and adding 
``Commercial Products and Commercial Services'' in its place; and
0
b. In paragraph (b), removing the text ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


12.402   [Amended]

0
66. Amend 12.402 by--
0
a. In paragraph (a):
0
i. Removing the text ``commercial item'' and adding ``commercial 
product or commercial service'' in its place; and
0
ii. Removing the text ``commercial items'' wherever it appears and 
adding ``commercial products or commercial services'' in its place;
0
b. Removing from paragraph (b) the phrase ``complex commercial items or 
commercial items used'' and adding ``complex commercial products or 
commercial services, or commercial products or commercial services 
used'' in its place; and
0
c. Removing from paragraph (c) ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


12.403   [Amended]

0
67. Amend section 12.403 by removing from paragraphs (a), (b), and (d) 
the text ``commercial items'' wherever it appears and adding 
``commercial products or commercial services'' in its place.


12.404   [Amended]

0
68. Amend section 12.404 by removing from paragraph (b) introductory 
text the term ``commercial items'' and adding ``commercial products'' 
in its place.

0
69. Revise the heading of subpart 12.5 to read as follows:

Subpart 12.5--Applicability of Certain Laws to the Acquisition of 
Commercial Products, Commercial Services and Commercially Available 
Off-the-Shelf Items


12.500   [Amended]

0
70. Amend section 12.500 by--
0
a. Removing from paragraphs (a)(1) and (2) the term ``commercial 
items'' and adding ``commercial products or commercial services'' in 
its place;
0
b. Removing from paragraph (a)(3) the text ``of COTS items'' and adding 
``of

[[Page 61024]]

commercially available off-the-shelf (COTS) items'' in its place; and
0
c. Removing from paragraph (b) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


12.501   [Amended]

0
71. Amend section 12.501 by removing from paragraphs (a) and (b) the 
term ``commercial items'' and adding ``commercial products or 
commercial services'' in its place.


12.502   [Amended]

0
72. Amend section 12.502 by--
0
a. Removing from paragraph (a) the text ``commercial items'' and adding 
``commercial products or commercial services'' in its place; and
0
b. Revising paragraph (b).
    The revision reads as follows:


12.502   Procedures.

* * * * *
    (b) For subcontracts for the acquisition of commercial products or 
commercial services, the clauses at 52.212-5, Contract Terms and 
Conditions Required to Implement Statutes or Executive Orders--
Commercial Products and Commercial Services, and 52.244-6, Subcontracts 
for Commercial Products and Commercial Services, reflect the 
applicability of the laws listed in 12.504 by identifying the only 
provisions and clauses that are required to be included in a 
subcontract at any tier for the acquisition of commercial products or 
commercial services.
* * * * *

0
73. Amend section 12.503 by--
0
a. Revising the section heading;
0
b. Removing from paragraph (a) the text ``commercial items'' and adding 
``commercial products or commercial services'' in its place;
0
c. Removing from paragraph (b) the text ``commercial items'' and adding 
``commercial products and commercial services'' in its place; and
0
d. Removing from paragraph (c) the words ``regards'' and ``commercial 
items'' and adding ``regard'' and ``commercial products and commercial 
services'' in their places, respectively.
    The revision reads as follows:


12.503   Applicability of certain laws to Executive agency contracts 
for the acquisition of commercial products and commercial services.

* * * * *

0
74. Amend section 12.504 by--
0
a. Revising the section heading;
0
b. Removing from paragraph (a) the phrase ``commercial items or 
commercial components'' and adding ``commercial products or commercial 
services'' in its place;
0
c. Removing from paragraph (b) the terms ``Subpart 22.3'' and 
``commercial items or commercial components'' and adding ``subpart 
22.3'' and ``commercial products or commercial services'' in their 
places, respectively; and
0
d. Removing from paragraph (c) the words ``regards'' and ``commercial 
items or commercial components'' and adding ``regard'' and ``commercial 
products or commercial services'' in their places, respectively.
    The revision reads as follows:


12.504   Applicability of certain laws to subcontracts for the 
acquisition of commercial products and commercial services.

* * * * *


12.505   [Amended]

0
75. Amend section 12.505 by removing from the introductory text the 
words ``commercial items'' and adding ``commercial products'' in its 
place.

0
76. Revise the heading of subpart 12.6 to read as follows:

Subpart 12.6--Streamlined Procedures for Evaluation and 
Solicitation for Commercial Products and Commercial Services

0
77. Revise section 12.601 to read as follows:


12.601   General.

    (a) This subpart provides optional procedures for--
    (1) Streamlined evaluation of offers for commercial products or 
commercial services; and
    (2) Streamlined solicitation of offers for commercial products or 
commercial services for use where appropriate.
    (b) These procedures are intended to simplify the process of 
preparing and issuing solicitations and evaluating offers for 
commercial products or commercial services consistent with customary 
commercial practices.

0
78. Amend section 12.602 by--
0
a. Removing from paragraph (a):
0
i. The term ``Commercial Items'' and adding ``Commercial Products and 
Commercial Services'' in its place; and
0
ii. The term ``commercial items'' and adding ``commercial products or 
commercial services'' in its place; and
0
b. Revising paragraph (b).
    The revision reads as follows:


12.602   Streamlined evaluation of offers.

* * * * *
    (b) Offers shall be evaluated in accordance with the criteria 
contained in the solicitation. For many commercial products or 
commercial services, the criteria need not be more detailed than 
technical (capability of the item offered to meet the agency need), 
price, and past performance. Technical capability may be evaluated by 
how well the proposed products or services meet the Government 
requirement instead of predetermined subfactors. Solicitations for 
commercial products or commercial services do not have to contain 
subfactors for technical capability when the solicitation adequately 
describes the intended use of the commercial product or commercial 
service. A technical evaluation would normally include examination of 
such things as product or service literature, product samples (if 
requested), technical features, and warranty provisions. Past 
performance shall be evaluated in accordance with the procedures in 
section 13.106 or subpart 15.3, as applicable. The contracting officer 
shall ensure the instructions provided in the provision at 52.212-1, 
Instructions to Offerors--Commercial Products and Commercial Services, 
and the evaluation criteria provided in the provision at 52.212-2, 
Evaluation--Commercial Products and Commercial Services, are in 
agreement.
* * * * *

0
79. Amend section 12.603 by--
0
a. Revising the section heading;
0
b. Removing from paragraph (a) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place;
0
c. Removing from paragraph (c)(2)(i) the terms ``commercial items'' and 
``Subpart 12.6'' and adding ``commercial products or commercial 
services'' and ``subpart 12.6'' in their places, respectively;
0
d. Removing from paragraph (c)(2)(viii) the text ``Commercial'' and 
adding ``Commercial Products and Commercial Services'' in its place;
0
e. Removing from paragraphs (c)(2)(ix), (x), and (xi) the text 
``Commercial Items'' and adding ``Commercial Products and Commercial 
Services'' in its place; and
0
f. Removing from paragraph (c)(2)(xii) the phrase ``Or Executive 
Orders--Commercial Items'' and adding ``or Executive Orders--Commercial 
Products and Commercial Services'' in its place.
    The revision reads as follows:


12.603   Streamlined solicitation for commercial products or commercial 
services.

* * * * *

[[Page 61025]]

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.000   [Amended]

0
80. Amend section 13.000 by:
0
i. Removing the text ``and commercial items'' and adding ``commercial 
products, and commercial services''; and
0
ii. Removing the text ``of commercial items'' wherever it appears and 
adding ``of commercial products and commercial services'' in its place.


13.003   [Amended]

0
81. Amend section 13.003 by--
0
a. Removing from paragraph (c)(1)(ii) the phrase ``commercial items 
using Subpart'' and adding ``commercial products or commercial services 
using subpart'' in its place;
0
b. Removing from paragraph (c)(2) introductory text the phrase 
``commercial items, the threshold in Subpart'' and adding ``commercial 
products and commercial services, the threshold in subpart'' in its 
place;
0
c. Removing from paragraph (g)(1) the phrase ``threshold for other than 
commercial items'' and adding ``threshold when acquiring other than 
commercial products or commercial services'' in its place; and
0
d. Removing from paragraph (g)(2) the text ``commercial items'' and 
``in Parts'' and adding ``commercial products or commercial services'' 
and ``in parts'' in their places, respectively.

0
82. Amend section 13.005 by revising paragraph (b) to read as follows:


13.005   List of laws inapplicable to contracts and subcontracts at or 
below the simplified acquisition threshold.

* * * * *
    (b) The Federal Acquisition Regulatory Council (FAR Council) will 
include any law enacted after October 13, 1994, that sets forth 
policies, procedures, requirements, or restrictions for the acquisition 
of property or services, on the list set forth in paragraph (a) of this 
section. The FAR Council may make exceptions when it determines in 
writing that it is in the best interest of the Government that the 
enactment should apply to contracts or subcontracts not greater than 
the simplified acquisition threshold.
* * * * *


13.105   [Amended]

0
83. Amend section 13.105 by removing from paragraph (b) the words 
``commercial items'' and adding ``commercial products or commercial 
services,'' in its place.


13.106-1   [Amended]

0
84. Amend section 13.106-1 by removing from paragraph (b)(2) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


13.302-1   [Amended]

0
85. Amend section 13.302-1 by removing from paragraph (a) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


13.302-4   [Amended]

0
86. Amend section 13.302-4 by--
0
a. Removing from paragraph (a)(1) ``commercial items'' and adding 
``commercial products and commercial services'' in its place; and
0
b. Removing from paragraph (a)(2) ``commercial items'' and adding 
``commercial products or commercial services'' in its place.


13.302-5   [Amended]

0
87. Amend section 13.302-5 by removing from paragraph (d)(1) the text 
``Commercial Items'' and ``commercial items'' and adding ``Commercial 
Products and Commercial Services'' and ``commercial products or 
commercial services'' in their places, respectively.


13.303-5   [Amended]

0
88. Amend section 13.303-5 by removing from paragraph (b)(2) the terms 
``commercial item'' and ``Subpart 13.5'' and adding ``commercial 
product and commercial service'' and ``subpart 13.5'' in their places, 
respectively.


13.303-8   [Amended]

0
89. Amend section 13.303-8 by removing ``Commercial Items'' and adding 
``Commercial Products and Commercial Services'' in its place.


13.307   [Amended]

0
90. Amend section 13.307 by--
0
a. In paragraph (a):
0
i. In the paragraph heading, removing ``Commercial items'' and adding 
``Commercial products and commercial services'' in its place; and
0
ii. Removing the text ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in its place; and
0
b. In paragraphs (b) and (c), removing the text ``commercial items'' 
and adding ``commercial products and commercial services'' in its 
place.

0
91. Revise the heading for subpart 13.5 to read as follows:

Subpart 13.5--Simplified Procedures for Certain Commercial Products 
and Commercial Services


13.500   [Amended]

0
92. Amend section 13.500 by--
0
a. In paragraph (a), removing the terms ``commercial items'' and 
``commercial item acquisitions'' and adding the terms ``commercial 
products or commercial services'' and ``commercial acquisitions'' in 
their places, respectively;
0
b. In paragraph (b), removing the text ``commercial items'' and adding 
``commercial products or commercial services'' in its place; and
0
c. In paragraphs (c)(1) and (2), removing the term ``commercial items'' 
and adding in its place the term ``commercial products or commercial 
services''.

PART 14--SEALED BIDDING


14.201-1   [Amended]

0
93. Amend section 14.201-1 by removing from paragraph (c) the phrase 
``(see 4.1202(b)) or for acquisitions of commercial items'' and adding 
``(see 4.1202(b)), or for acquisitions of commercial products and 
commercial services'' in its place.

PART 15--CONTRACTING BY NEGOTIATION


15.204-1   [Amended]

0
94. Amend section 15.204-1 by removing from paragraph (b) the text 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


15.209   [Amended]

0
95. Amend section 15.209 by removing from paragraph (b)(1)(iii) the 
term ``commercial items'' and adding ``commercial products or 
commercial services'' in its place.

0
96. Amend section 15.306 by revising paragraph (e)(2) to read as 
follows:


15.306   Exchanges with offerors after receipt of proposals.

* * * * *
    (e) * * *
    (2) Reveals an offeror's technical solution, including--
    (i) Unique technology;
    (ii) Innovative and unique uses of commercial products or 
commercial services; or
    (iii) Any information that would compromise an offeror's 
intellectual property to another offeror;
* * * * *

[[Page 61026]]

15.401   [Amended]

0
97. Amend section 15.401 in the definition of ``Subcontract'' by 
removing the terms ``commercial items'' and ``41 U.S.C. 3501(a)(3)'' 
and adding ``commercial products or commercial services'' and ``41 
U.S.C. 3501(a)(2)'' in their places, respectively.

0
98. Amend section 15.403-1 by--
0
a. In paragraph (b)(3), removing the terms ``commercial item'' and 
``subsection'' and adding ``commercial product or commercial service'' 
and ``section'' in their places, respectively;
0
b. In paragraph (b)(5), removing the terms ``commercial items'' and 
``subsection'' and adding ``commercial products or commercial 
services'' and ``section'' in their places, respectively;
0
c. Revising the heading of paragraph (c)(3) and revising paragraph 
(c)(3)(i);
0
d. Removing from paragraphs (c)(3)(ii)(A) and (B) the term ``commercial 
items'' and adding ``commercial services'' in their places, 
respectively;
0
e. Revising paragraph (c)(3)(iii) introductory text;
0
f. Removing from paragraphs (c)(3)(iii)(A), (B), and (C) the text 
``commercial item'' and adding ``commercial product'' in their places, 
respectively; and
0
g. Removing from paragraph (c)(3)(iv) the phrase ``for noncommercial 
supplies or services treated as commercial items'' and adding ``for 
other than commercial products or services treated as commercial 
products or commercial services'' in its place.
    The revisions read as follows:


15.403-1   Prohibition on obtaining certified cost or pricing data (10 
U.S.C. 2306a and 41 U.S.C. chapter 35).

* * * * *
    (c) * * *
    (3) Commercial products and commercial services. (i) Any 
acquisition that the contracting officer determines meets the 
commercial product or commercial service definition in 2.101, or any 
modification, as defined in paragraph (3)(i) of the commercial product 
definition, that does not change a commercial product to other than 
commercial, is exempt from the requirement for certified cost or 
pricing data. If the contracting officer determines that a product or 
service claimed to be commercial is not, and that no other exception or 
waiver applies (e.g., the acquisition is not based on adequate price 
competition; the acquisition is not based on prices set by law or 
regulation; and the acquisition exceeds the threshold for the 
submission of certified cost or pricing data at 15.403-4(a)(1)), the 
contracting officer shall require submission of certified cost or 
pricing data.
* * * * *
    (iii) The following requirements apply to minor modifications 
defined in paragraph (3)(ii) of the definition of a commercial product 
at 2.101 that do not change the commercial product to other than 
commercial:
* * * * *


15.403-3   [Amended]

0
99. Amend section 15.403-3 by--
0
a. Revising the heading of paragraph (c);
0
b. Removing from paragraph (c)(1) the term ``commercial item'' and 
adding ``commercial product or commercial service'' in its place;
0
c. Removing from the heading of paragraph (c)(2) the term ``commercial 
items'' and adding ``commercial products or commercial services'' in 
its place; and
0
d. Removing from paragraphs (c)(2)(i), (ii), and (iii) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.
    The revision reads as follows:


15.403-3   Requiring data other than certified cost or pricing data.

* * * * *
    (c) Commercial products and commercial services. * * *
* * * * *

0
100. Amend section 15.404-1 by--
0
a. Removing from paragraph (a)(4) the phrase ``for commercial or non-
commercial items'';
0
b. Revising the heading of paragraph (b);
0
c. Removing from the last sentence in paragraph (b)(1) the word 
``item'';
0
d. Removing from paragraph (b)(2)(ii) introductory text the phrase 
``commercial items including those ``of a type'' or requiring minor 
modifications'' and adding ``commercial products or commercial services 
including those ``of a type'' or when requiring minor modifications for 
commercial products'' in its place;
0
e. Removing from paragraphs (b)(2)(ii)(C) and (e)(3) the phrase 
``commercial items that are ``of a type'' or requiring minor 
modifications'' and adding ``commercial products or commercial services 
that are ``of a type'', or requiring minor modifications for commercial 
products'' in its place; and
0
f. Removing from paragraph (f)(2) the term ``commercial items'' and 
adding ``commercial products'' in its place.
    The revision reads as follows:


15.404-1   Proposal analysis techniques.

* * * * *
    (b) Price analysis. * * *
* * * * *


15.404-2   [Amended]

0
101. Amend section 15.404-2 in paragraph (a)(2)(iii)(E) by removing the 
term ``for an item'' and adding its place the term ``for a product or 
service'' and removing the term ``commercial item'' and adding in its 
place the phrase ``commercial product or commercial service''.


15.407-2   [Amended]

0
102. Amend section 15.407-2 by removing from paragraph (e)(1) the text 
``commercial items'' and adding ``commercial products, commercial 
services'' in its place.


15.408   [Amended]

0
103. Amend section 15.408 by--
0
a. Removing from paragraph (f)(1)(v) the text ``commercial items'' and 
adding ``commercial products and commercial services'' in its place;
0
b. Removing from paragraphs (n)(2)(i)(B)(2)(iii), (iv), and (vi) the 
term ``commercial item'' and adding ``commercial product or commercial 
service'' in its place; and
0
c. In table 15-2:
0
i. Revising the section I heading;
0
ii. Revising the section II heading;
0
iii. In paragraph (II)(A)(2), in the second sentence, removing the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
iv. In paragraph (II)(A)(2), in the ninth sentence, removing the term 
``commercial items'' and adding ``commercial products'' in its place; 
and
0
v. Revising the section III heading.
    The revisions read as follows:


15.408   Solicitation provisions and contract clauses.

* * * * *

Table 15-2--Instructions for Submitting Cost/Price Proposals When 
Certified Cost or Pricing Data Are Required

* * * * *

I. General Instructions

* * * * *

II. Cost Elements

* * * * *

III. Formats for Submission of Line Item Summaries

* * * * *


15.506   [Amended]

0
104. Amend section 15.506 by removing from paragraph (d)(5) the phrase 
``commercial items, the make

[[Page 61027]]

and model of the item'' and adding ``commercial products, the make and 
model of the product'' in its place.

0
105. Amend section 15.601 by revising the definition of ``Commercial 
item offer'' to read as follows:


15.601   Definitions.

* * * * *
    Commercial product or commercial service offer means an offer of a 
commercial product or commercial service that the vendor wishes to see 
introduced in the Government's supply system as an alternate or a 
replacement for an existing supply item. This term does not include 
innovative or unique configurations or uses of commercial products or 
commercial services that are being offered for further development and 
that may be submitted as an unsolicited proposal.
* * * * *


15.603   [Amended]

0
106. Amend section 15.603 by removing from paragraph (b) the term 
``commercial item'' and adding ``commercial product or commercial 
service'' in its place.

PART 16--TYPES OF CONTRACTS

0
107. Amend section 16.001 by adding in alphabetical order the 
definition of ``Established price'' to read as follows:


16.001   Definitions.

* * * * *
    Established price means a price that--
    (1) Is an established catalog or market price for a commercial 
product sold in substantial quantities to the general public; and
    (2) Is the net price after applying any standard trade discounts 
offered by the contractor.
* * * * *


16.201   [Amended]

0
108. Amend section 16.201 by removing from paragraph (a) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


16.202-2   [Amended]

0
109. Amend section 16.202-2 by removing from the introductory text the 
term ``commercial items'' and adding ``commercial products or 
commercial services'' in its place.

0
110. Amend section 16.203-4 by adding paragraphs (a)(4), (b)(6), and 
(c)(5) to read as follows:


16.203-4   Contract clauses.

    (a) * * *
    (4) The contracting officer may modify the clause by increasing the 
10 percent limit on aggregate increases specified in 52.216-2(c)(1), 
upon approval by the chief of the contracting office.
    (b) * * *
    (6) The contracting officer may modify the clause by increasing the 
10 percent limit on aggregate increases specified in 52.216-3(c)(1), 
upon approval by the chief of the contracting office.
    (c) * * *
    (5) The contracting officer may modify the clause by increasing the 
10 percent limit on aggregate increases specified in 52.216-4(c)(4), 
upon approval by the chief of the contracting office.
* * * * *


16.301-3   [Amended]

0
111. Amend section 16.301-3 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


16.307   [Amended]

0
112. Amend section 16.307 by removing from paragraph (a)(1) the term 
``commercial item'' and adding ``commercial product or commercial 
service'' in its place.


16.506   [Amended]

0
113. Amend section 16.506 by removing from paragraph (h) the words 
``See'' and ``commercial items'' and adding ``See'' and ``commercial 
products or commercial services'' in their places, respectively.

0
114. Amend section 16.601 by--
0
a. Removing from paragraph (c)(2)(ii) the term ``noncommercial items'' 
and adding ``other than commercial products or commercial services'' in 
its place;
0
b. Removing from paragraph (c)(2)(iv) the phrase ``the definition of 
commercial item at 2.101'' and adding ``the definition of ``commercial 
service'''' in its place;
0
c. Removing from paragraph (d)(2) the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place; 
and
0
d. Revising the first sentence of paragraph (f)(1) and revising 
paragraphs (f)(2) and (3).
    The revisions read as follows:


16.601   Time-and-materials contracts.

* * * * *
    (f) * * * (1) The contracting officer shall insert the provision at 
52.216-29, Time-and-Materials/Labor-Hour Proposal Requirements--Other 
Than Commercial Acquisition With Adequate Price Competition, in 
solicitations contemplating use of a time-and-materials or labor-hour 
type of contract for the acquisition of other than commercial products 
or commercial services, if the price is expected to be based on 
adequate price competition. * * *
    (2) The contracting officer shall insert the provision at 52.216-
30, Time-and-Materials/Labor-Hour Proposal Requirements--Other Than 
Commercial Acquisition Without Adequate Price Competition, in 
solicitations for the acquisition of other than commercial products or 
commercial services contemplating use of a time-and-materials or labor-
hour type of contract if the price is not expected to be based on 
adequate price competition.
    (3) The contracting officer shall insert the provision at 52.216-
31, Time-and-Materials/Labor-Hour Proposal Requirements--Commercial 
Acquisition, in solicitations contemplating use of a commercial time-
and-materials or labor-hour contract.

PART 18--EMERGENCY ACQUISITIONS


18.201   [Amended]

0
115. Amend section 18.201 by removing from paragraph (e) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.

0
116. Amend section 18.202 by--
0
a. Revising the heading for paragraph (c);
0
b. Removing from paragraph (c) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place; and
0
c. Removing from paragraph (d) the term ``commercial items'' and adding 
``commercial products and commercial services'' in its place.
    The revision reads as follows:


18.202   Defense or recovery from certain events.

* * * * *
    (c) Commercial product or commercial service treatment. * * *
* * * * *

PART 19--SMALL BUSINESS PROGRAMS


19.304   [Amended]

0
117. Amend section 19.304 by removing from paragraph (b) the term 
``Certifications--Commercial Items'' and adding ``Certifications--
Commercial

[[Page 61028]]

Products and Commercial Services'' in its place.


19.701   [Amended]

0
118. Amend section 19.701 by removing from the definition of 
``Commercial plan'' the term ``commercial items'' and adding 
``commercial products and performance of commercial services'' in its 
place.


19.704   [Amended]

0
119. Amend section 19.704 by removing from paragraph (d) the terms 
``commercial items'' and ``commercial item'' and adding ``commercial 
products and commercial services'' and ``commercial product or 
commercial service'' in their places, respectively.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.305   [Amended]

0
120. Amend section 22.305 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


22.604-1   [Amended]

0
121. Amend section 22.604-1 by removing from paragraph (a) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


22.1302   [Amended]

0
122. Amend section 22.1302 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products or commercial 
services,'' in its place.


22.1310   [Amended]

0
123. Amend section 22.1310 by removing from paragraph (c) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.


22.1505   [Amended]

0
124. Amend section 22.1505 by removing from paragraph (a) the terms 
``commercial items'' and ``Certifications--Commercial Items'' and 
adding ``commercial products or commercial services'' and 
``Certifications--Commercial Products and Commercial Services'' in 
their places, respectively.


22.1605   [Amended]

0
125. Amend section 22.1605 by removing from paragraph (a) ``commercial 
items'' and adding ``commercial products, commercial services,'' in its 
place.


22.1801   [Amended]

0
126. Amend section 22.1801 in the definition of ``Commercially 
available off-the-shelf (COTS) item'' by removing in paragraph (1)(i) 
the phrase ``commercial item (as defined in paragraph (1) of the 
definition at 2.101'' and adding ``commercial product (as defined in 
paragraph (1) of the definition of ``commercial product'' at 2.101'' in 
its place.


22.1802   [Amended]

0
127. Amend section 22.1802 by removing from paragraph (b)(4)(i) the 
term ``Commercial or noncommercial services'' and adding ``Services'' 
in its place.


22.1803   [Amended]

0
128. Amend section 22.1803 by removing from paragraph (c)(2) the phrase 
``definition of ``commercial item'' at 2.101'' and adding ``definition 
of ``commercial product'' at 2.101'' in its place.

PART 23--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY 
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE


23.501   [Amended]

0
129. Amend section 23.501 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.

PART 25--FOREIGN ACQUISITION


25.103   [Amended]

0
130. Amend section 25.103 by removing from paragraph (e) the terms 
``commercial item'', ``commercial item'', and ``Section'' and adding 
``commercial product'', ``commercial product'', and ``section'' in 
their places, respectively.


25.202   [Amended]

0
131. Amend section 25.202 by removing from paragraph (a)(4) the terms 
``commercial item'', ``commercial item'', and ``Section'' and adding 
``commercial product'', ``commercial product'', and ``section'' in 
their places, respectively.


25.703-2   [Amended]

0
132. Amend section 25.703-2 by--
0
a. Removing from paragraph (b) introductory text the phrase ``of this 
subsection'' and adding ``of this section'' in its place; and
0
b. Removing from paragraph (b)(1) the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.


25.1001   [Amended]

0
133. Amend section 25.1001 by removing from paragraph (a) the text 
``Executive Orders--Commercial Items'' and adding ``Executive Orders--
Commercial Products and Commercial Services'' in its place.


25.1101   [Amended]

0
134. Amend section 25.1101 by--
0
a. In paragraph (a)(1)(i), removing the word ``Subpart'' and adding 
``subpart'' in its place;
0
b. In paragraph (a)(1)(ii), removing the term ``commercial item'' and 
adding ``commercial product'' in its place; and
0
c. In paragraph (b)(1)(i)(B), removing the term ``commercial item'' and 
adding ``commercial product'' in its place.

0
135. Amend section 25.1103 by revising paragraph (d) to read as 
follows:


25.1103   Other provisions and clauses.

* * * * *
    (d) The contracting officer shall include in each solicitation for 
the acquisition of other than commercial products or commercial 
services the provision at 52.225-20, Prohibition on Conducting 
Restricted Business Operations in Sudan--Certification.
* * * * *

PART 26--OTHER SOCIOECONOMIC PROGRAMS


26.206   [Amended]

0
136. Amend section 26.206 by removing from paragraph (a) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.

PART 27--PATENTS, DATA, AND COPYRIGHTS


27.102   [Amended]

0
137. Amend section 27.102 by removing from paragraph (c) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


27.201-1   [Amended]

0
138. Amend section 27.201-1 by removing from paragraph (d) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place, and by removing ``FAR''.


27.201-2   [Amended]

0
139. Amend section 27.201-2 by--
0
a. Removing from paragraph (c)(1) the term ``commercial items'' and 
adding

[[Page 61029]]

``commercial products or the provision of commercial services'' in its 
place; and
0
b. Removing from paragraph (c)(2)(i) the term ``commercial items'' and 
adding ``commercial products or the provision of services that are not 
commercial services'' in its place.

PART 28--BONDS AND INSURANCE


28.106-4   [Amended]

0
140. Amend section 28.106-4 by removing from paragraph (b) the words 
``Section'', ``Pub. L.'' wherever it appears, ``Sections'', and 
``commercial items as defined in Subpart'' and adding ``section'', 
``Public Law'', ``sections'', and ``commercial products or commercial 
services as defined in subpart'' in their places, respectively.


28.106-6   [Amended]

0
141. Amend section 28.106-6 in paragraph (d) introductory text by:
0
a. Removing the term ``Pub. L.'' wherever it appears and adding in its 
place ``Public Law'';
0
b. Removing the word ``Sections'' and adding in its place ``sections''; 
and
0
c. Removing the phrase ``commercial items as defined in Subpart'' and 
adding in its place ``commercial products or commercial services as 
defined in subpart''.

PART 29--TAXES


29.402-3   [Amended]

0
142. Amend section 29.402-3 by removing from paragraph (a) introductory 
text the terms ``FAR part 12'' and ``commercial items'' and adding 
``part 12'' and ``commercial products and commercial services'' in 
their places, respectively.

PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION


30.201-5   [Amended]

0
143. Amend section 30.201-5 by:
0
a. In paragraph (b)(1) introductory text, removing the text 
``$15,000,000'' and adding ``$15 million'' in its place; and
0
b. In paragraph (b)(1)(i), removing the term ``commercial items'' and 
adding in its place ``commercial products or commercial services''.

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES


31.205-26   [Amended]

0
144. Amend section 31.205-26 by removing from paragraph (f) 
introductory text the phrases ``commercial item'' and ``subsection is 
transferred'' and adding ``commercial product or commercial service'' 
and ``section is sold or transferred'' in their places, respectively.

PART 32--CONTRACT FINANCING


32.000   [Amended]

0
145. Amend section 32.000 by removing from paragraph (g) the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place.


32.002   [Amended]

0
146. Amend section 32.002 by--
0
a. Removing from paragraph (b) the terms ``Commercial Item'' and 
``commercial items'' and adding ``Commercial Product and Commercial 
Service'' and ``commercial products and commercial services'' in their 
places, respectively;
0
b. Removing from paragraph (c)(1) the term ``Non-Commercial Item 
Purchase Financing'' and adding ``Financing for Other Than a Commercial 
Purchase'' in its place; and
0
c. Removing from paragraph (c)(2) the words ``For Non-Commercial 
Items'' and adding ``for Other Than Commercial Acquisitions'' in its 
place.


32.005   [Amended]

0
147. Amend section 32.005 by removing from paragraph (c) the term ``for 
Non-Commercial Items'' and adding ``for Other Than Commercial 
Acquisitions'' in its place.

0
148. Revise the heading of subpart 32.1 to read as follows:

Subpart 32.1 Financing for Other Than a Commercial Purchase


32.100   [Amended]

0
149. Amend section 32.100 by removing the text ``commercial items'' and 
adding ``commercial products or commercial services'' in its place.


32.110   [Amended]

0
150. Amend section 32.110 by removing from paragraph (a) the term 
``commercial item'' and adding ``commercial product or commercial 
service'' in its place.


32.112   [Amended]

0
151. Amend section 32.112 by revising the section heading to read as 
follows:


32.112   Nonpayment of subcontractors under contracts other than for 
commercial products and commercial services.

* * * * *

0
152. Amend section 32.112-2 by revising paragraph (a) introductory text 
to read as follows:


32.112-2   Subcontractor requests for information.

    (a) In accordance with section 806(a)(1) of Public Law 102-190, as 
amended by sections 2091 and 8105 of Public Law 103-355 (10 U.S.C. 2302 
note), upon the request of a subcontractor or supplier under a Federal 
contract other than for a commercial product or commercial service, the 
contracting officer shall promptly advise the subcontractor or supplier 
as to--
* * * * *

0
153. Revise the heading of subpart 32.2 to read as follows:

Subpart 32.2 Commercial Product and Commercial Service Purchase 
Financing


32.201   [Amended]

0
154. Amend section 32.201 by removing the text ``commercial items'' and 
adding ``commercial products or commercial services'' in its place.


32.202-1   [Amended]

0
155. Amend section 32.202-1 by--
0
a. Removing from paragraph (a) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place; and
0
b. In paragraph (c):
0
i. Removing the term ``non-commercial'' and adding ``other than 
commercial'' in its place; and
0
ii. Removing the term ``non-commercial'' wherever it appears and adding 
``other than commercial'' in its place.


32.202-2   [Amended]

0
156. Amend section 32.202-2 by--
0
a. Revising the section heading; and
0
b. Removing from the definition of ``Commercial advance payment'' the 
word ``subsection'' and the term ``for Non-Commercial Items'' and 
adding ``section'' and ``for Other Than Commercial Acquisitions'' in 
their places, respectively.
    The revision reads as follows:


32.202-2   Types of payments for commercial product and commercial 
service purchases.

* * * * *


32.202-4   [Amended]

0
157. Amend section 32.202-4 by removing from paragraph (a)(2) the term 
``Commercial Items'' and adding ``Commercial Products and Commercial 
Services'' in its place.


32.206   [Amended]

0
158. Amend section 32.206 by--
0
a. Removing the term ``Commercial Items'' wherever it appears and 
adding

[[Page 61030]]

``Commercial Products and Commercial Services'' in its place;
0
b. Removing from paragraph (f) ``non-commercial'' and adding ``other 
than commercial'' in its place; and
0
c. Removing from paragraph (g) heading ``commercial items'' and adding 
``commercial products and commercial services'' in its place.

0
159. Revise the heading of subpart 32.4 to read as follows:

Subpart 32.4 Advance Payments for Other Than Commercial 
Acquisitions


32.504   [Amended]

0
160. Amend section 32.504 by removing from paragraphs (a), (b), and (g) 
the term ``commercial item'' and adding ``commercial product or 
commercial service'' in its place.


32.601   [Amended]

0
161. Amend section 32.601 by removing from paragraphs (b)(3) and (10) 
the term ``commercial item financing'' and adding ``financing of 
commercial products or commercial services'' in its place.


32.904   [Amended]

0
162. Amend section 32.904 by removing from paragraph (b)(1)(ii)(B)(4) 
the phrase ``commercial item, including a brand-name commercial item 
for'' and adding ``commercial product or commercial service, including 
a brand-name commercial product for'' in its place.


32.908   [Amended]

0
163. Amend section 32.908 by--
0
a. Removing from paragraph (c) introductory text the term ``Commercial 
Items'' and adding ``Commercial Products and Commercial Services'' in 
its place; and
0
b. Removing from paragraph (c)(1) the terms ``commercial item'' and 
``commercial item for'' and adding ``commercial product or commercial 
service'' and ``commercial product for'' in their places, respectively.

PART 37--SERVICE CONTRACTING


37.601   [Amended]

0
164. Amend section 37.601 by removing paragraph (c).

PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING


38.101   [Amended]

0
165. Amend section 38.101 by removing from paragraph (a) the phrase 
``commercial supplies and services'' and adding ``commercial supplies 
and commercial services'' in its place.

PART 39--ACQUISITION OF INFORMATION TECHNOLOGY

0
166. Amend section 39.203 by revising paragraph (d) to read as follows:


39.203   Applicability.

* * * * *
    (d) Commercial products and commercial services. When acquiring 
commercial products and commercial services, an agency must comply with 
those ICT accessibility standards that can be met with supplies or 
services that are available in the commercial marketplace and that best 
address the agency's needs, but see 39.205(a)(3).
* * * * *

0
167. Amend section 39.205 by revising paragraphs (a)(3) and (c)(3) 
introductory text to read as follows:


39.205   Exemptions.

    (a) * * *
    (3) Nonavailability of conforming commercial products and 
commercial services. Where there are no commercial products and 
commercial services that fully conform to the ICT accessibility 
standards, the agency shall procure the supplies or service available 
in the commercial marketplace that best meets the ICT accessibility 
standards consistent with the agency's needs.
* * * * *
    (c) * * *
    (3) Nonavailability of conforming commercial products and 
commercial services. A determination of commercial products and 
commercial services nonavailability shall include--
* * * * *

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES


42.709-1   [Amended]

0
168. Amend section 42.709-1 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.


42.709-7   [Amended]

0
169. Amend section 42.709-7 by removing the text ``commercial items'' 
and adding ``commercial products or commercial services'' in its place.


42.1305  [Amended]

0
170. Amend section 42.1305 by removing from paragraph (c) the text 
``modified-commercial items'' wherever it appears and adding 
``modified-commercial products'' in its place.

PART 43--CONTRACT MODIFICATIONS


43.105  [Amended]

0
171. Amend section 43.105 by removing from paragraph (c) the phrase 
``commercial items, including commercially available off-the-shelf 
items'' and adding ``commercial products, including commercially 
available off-the-shelf items, and commercial services'' in its place.

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES


44.000  [Amended]

0
172. Amend section 44.000 by removing from paragraph (b) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place.


44.302  [Amended]

0
173. Amend section 44.302 by removing from paragraph (a) the terms 
``commercial items'' and ``Part 12'' and adding ``commercial products 
and commercial services'' and ``part 12'' in their places, 
respectively.


44.303  [Amended]

0
174. Amend section 44.303 by removing from the introductory text the 
term ``commercial items'' and adding ``commercial products and 
commercial services'' in its place.

0
175. Revise the heading for subpart 44.4 to read as follows:

Subpart 44.4 Subcontracts for Commercial Products and Commercial 
Services


44.400  [Amended]

0
176. Amend section 44.400 by removing the text ``commercial items or 
commercial components'' and adding ``commercial products, including 
commercial components, or commercial services'' in its place.


44.402  [Amended]

0
177. Amend section 44.402 by--
0
a. Removing from paragraph (a)(1) the words ``commercial items'' and 
adding ``commercial products, commercial services,'' in its place;
0
b. Removing from paragraph (a)(2) introductory text the phrase 
``commercial items or commercial components'' and adding ``commercial 
products or commercial services'' in its place;
0
c. Removing from paragraph (a)(2)(i) the phrase ``executive orders 
applicable to subcontractors furnishing commercial items or commercial 
components'' and adding ``Executive orders applicable to

[[Page 61031]]

subcontractors furnishing commercial products or commercial services'' 
in its place;
0
d. Removing from paragraph (b) the terms ``Commercial Items'' and 
``commercial items or commercial components'' and adding ``Commercial 
Products and Commercial Services'' and ``commercial products or 
commercial services'' in their places, respectively; and
0
e. Removing from paragraph (c) the words ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.


44.403  [Amended]

0
178. Amend section 44.403 by removing the terms ``Commercial Items'' 
and ``commercial items'' and adding ``Commercial Products and 
Commercial Services'' and ``commercial products or commercial 
services'' in their places, respectively.

PART 46--QUALITY ASSURANCE


46.102  [Amended]

0
179. Amend section 46.102 by--
0
a. Removing from paragraph (b) the phrase ``services tendered'' and 
adding ``services (including commercial services) tendered'' in its 
place; and
0
b. Removing from paragraph (f) the phrases ``commercial items shall'' 
and ``commercial item'' and adding ``commercial products'' and 
``commercial product'' in their places, respectively.

0
180. Revise section 46.202-1 to read as follows:


46.202-1  Contracts for commercial products and commercial services.

    When acquiring commercial products (see part 12), the Government 
shall rely on contractors' existing quality assurance systems as a 
substitute for Government inspection and testing before tender for 
acceptance unless customary market practices for the commercial product 
being acquired include in-process inspection. Any in-process inspection 
by the Government shall be conducted in a manner consistent with 
commercial practice. The Government shall rely on the contractor to 
accomplish all inspection and testing needed to ensure that commercial 
services acquired conform to contract requirements before they are 
tendered to the Government.


46.317  [Amended]

0
181. Amend section 46.317 by removing from paragraph (b)(1) the term 
``Commercial items'' and adding ``Commercial products and commercial 
services'' in its place.

0
182. Amend section 46.706 by--
0
a. Removing from paragraph (b)(1)(iii) the term ``commercial items'' 
and adding ``commercial products and commercial services'' in its 
place; and
0
b. Revising paragraph (b)(5).
    The revision reads as follows:


46.706  Warranty terms and conditions.

* * * * *
    (b) * * *
    (5) Markings. (i) The packaging and preservation requirements of 
the contract shall require the contractor to stamp or mark the supplies 
delivered or otherwise furnish notice with the supplies of the 
existence of the warranty. The purpose of the markings or notice is to 
inform Government personnel who store, stock, or use the supplies that 
the supplies are under warranty. Markings may be brief but should 
include--
    (A) A brief statement that a warranty exists;
    (B) The substance of the warranty;
    (C) Its duration; and
    (D) Who to notify if the supplies are found to be defective.
    (ii) For commercial products (see 46.709), the contractor's trade 
practice in warranty marking is acceptable if sufficient information is 
presented for supply personnel and users to identify warranted 
supplies.
* * * * *

0
183. Amend section 46.709 by:
0
a. Revising the section heading; and
0
b. Removing the term ``commercial items'' and adding ``commercial 
products and commercial services'' in its place.
    The revision reads as follows:


46.709  Warranties of commercial products and commercial services.

* * * * *


46.710  [Amended]

0
184. Amend section 46.710 by removing from the introductory text the 
term ``commercial items'' and adding ``commercial products and 
commercial services'' in its place.

0
185. Amend section 46.801 by revising paragraph (a) to read as follows:


46.801  Applicability.

    (a) This subpart does not apply to commercial products and 
commercial services. This subpart applies to contracts other than those 
for--
    (1) Information technology, including telecommunications;
    (2) Construction;
    (3) Architect-engineer services; and
    (4) Maintenance and rehabilitation of real property.
* * * * *

PART 47--TRANSPORTATION


47.405  [Amended]

0
186. Amend section 47.405 by removing the quote marks in the first 
sentence, and by removing in the second sentence ``commercial items'' 
and adding ``commercial products'' in its place.


47.504  [Amended]

0
187. Amend section 47.504 by:
0
a. In paragraph (d) introductory text, removing the phrase ``commercial 
items or commercial components'' and adding ``commercial products, 
including commercial components, or commercial services'' in its place; 
and
0
b. In paragraph (d)(4) introductory text, removing the term 
``commercial items'' and adding ``commercial products'' in its place.


47.507  [Amended]

0
188. Amend section 47.507 by removing from paragraph (a)(3) the terms 
``Alternate II'' and ``commercial items'' and adding ``Alternate II'' 
and ``commercial products'' in their places, respectively.

PART 49--TERMINATION OF CONTRACTS


49.002  [Amended]

0
189. Amend section 49.002 in paragraph (a)(2) by:
0
a. Removing the term ``commercial item'' and adding in its place 
``commercial product and commercial service'';
0
b. Removing the term ``commercial items'' wherever it appears and 
adding in its place ``commercial products and commercial services''; 
and
0
c. Removing the term ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in its place.


49.501  [Amended]

0
190. Amend section 49.501 by removing the text ``Commercial Items'' and 
adding ``Commercial Products and Commercial Services'' in its place.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
191. Amend section 52.203-6 by:
0
a. Revising the date of Alternate I; and
0
b. Removing from paragraph (b) of Alternate I the terms ``commercial 
items'' and ``commercial item(s)'' and adding ``commercial products or 
commercial services'' and ``commercial product(s) and commercial 
service(s)'' in their places, respectively.
    The revision reads as follows:

[[Page 61032]]

52.203-6  Restrictions on Subcontractor Sales to the Government.

* * * * *
    Alternate I (NOV 2021). * * *
* * * * *

0
192. Amend section 52.203-13 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the term ``commercial item'' and adding 
``commercial product or commercial service'' in its place.
    The revision reads as follows:


52.203-13  Contractor Code of Business Ethics and Conduct.

* * * * *
Contractor Code of Business Ethics and Conduct (NOV 2021)
* * * * *

0
193. Amend section 52.203-14 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (d)(1) the term ``commercial item'' and 
adding ``commercial product or commercial service'' in its place.
    The revision reads as follows:


52.203-14  Display of Hotline Poster(s).

* * * * *
Display of Hotline Poster(s) (NOV 2021)
* * * * *

0
194. Amend section 52.204-8 by:
0
a. Revising the date of the provision; and
0
b. Removing from paragraph (c)(1)(xvi) the term ``commercial items'' 
and adding ``commercial products or commercial services'' in its place.
    The revision reads as follows:


52.204-8  Annual Representations and Certifications.

* * * * *
Annual Representations and Certifications (NOV 2021)
* * * * *

0
195. Amend section 52.204-21 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


52.204-21  Basic Safeguarding of Covered Contractor Information 
Systems.

* * * * *
Basic Safeguarding of Covered Contractor Information Systems (NOV 2021)
* * * * *

0
196. Amend section 52.204-23 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (d) the phrases ``in all subcontracts,'' and 
``commercial items'' and adding ``in all subcontracts'' and 
``commercial products or commercial services'' in their places, 
respectively.
    The revision reads as follows:


52.204-23  Prohibition on Contracting for Hardware, Software, and 
Services Developed or Provided by Kaspersky Lab and Other Covered 
Entities.

* * * * *
Prohibition on Contracting for Hardware, Software, and Services 
Developed or Provided by Kaspersky Lab and Other Covered Entities (NOV 
2021)
* * * * *

0
197. Amend section 52.204-24 by:
0
a. Revising the date of the clause; and
0
b. Removing from the introductory paragraph the term ``Commercial 
Items'' and adding ``Commercial Products and Commercial Services'' in 
its place.
    The revision reads as follows:


52.204-24  Representation Regarding Certain Telecommunications and 
Video Surveillance Services or Equipment.

* * * * *
Representation Regarding Certain Telecommunications and Video 
Surveillance Services or Equipment (NOV 2021)
* * * * *

0
198. Amend section 52.204-25 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (e) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


52.204-25  Prohibition on Contracting for Certain Telecommunications 
and Video Surveillance Services or Equipment.

* * * * *
Prohibition on Contracting for Certain Telecommunications and Video 
Surveillance Services or Equipment (NOV 2021)
* * * * *

0
199. Amend section 52.209-6 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a) introductory text the word ``item'' and 
adding ``item'' in its place;
0
c. Removing from paragraph (a)(1)(i) the phrase ``commercial item (as 
defined in paragraph (1) of the definition in'' and adding ``commercial 
product (as defined in paragraph (1) of the definition of ``commercial 
product'' in'' in its place; and
0
d. Removing from paragraph (e) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


52.209-6  Protecting the Government's Interest When Subcontracting With 
Contractors Debarred, Suspended, or Proposed for Debarment.

* * * * *
Protecting the Government's Interest When Subcontracting With 
Contractors Debarred, Suspended, or Proposed for Debarment (NOV 2021)
* * * * *

0
200. Amend section 52.209-13 by:
0
a. Revising the date of the provision; and
0
b. Removing from paragraph (a) the phrase ``commercial items as defined 
at FAR 2.101'' and adding ``commercial products and commercial services 
as defined in Federal Acquisition Regulation 2.101'' in its place.
    The revision reads as follows:


52.209-13  Violation of Arms Control Treaties or Agreements--
Certification.

* * * * *
Violation of Arms Control Treaties or Agreements--Certification (NOV 
2021)
* * * * *

0
201. Amend section 52.209-14 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (d)(1) the term ``commercial items'' and 
adding ``commercial products and commercial services'' in its place.
    The revision reads as follows:


52.209-14  Reserve Officer Training Corps and Military Recruiting on 
Campus.

* * * * *
Reserve Officer Training Corps and Military Recruiting on Campus (NOV 
2021)
* * * * *

0
202. Amend section 52.210-1 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (a);
0
c. Revising the introductory text of paragraph (b);
0
d. Removing from the introductory text of paragraph (b)(1) the phrase 
``commercial items or, to the extent commercial items'' and adding 
``commercial products, commercial services, or, to the extent 
commercial products'' in its place; and
0
e. Removing from paragraph (b)(2) the term ``commercial items'' and 
adding ``commercial products, commercial services,'' in its place.
    The revisions read as follows:


52.210-1  Market Research.

* * * * *
Market Research (NOV 2021)
    (a) Definition. As used in this clause--

[[Page 61033]]

    Commercial product, commercial service, and nondevelopmental item 
have the meaning contained in Federal Acquisition Regulation (FAR) 
2.101.
    (b) Before awarding subcontracts for other than commercial 
acquisitions, where the subcontracts are over the simplified 
acquisition threshold, as defined in FAR 2.101 on the date of 
subcontract award, the Contractor shall conduct market research to--
* * * * *

0
203. Amend section 52.212-1 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the provision;
0
c. Removing from paragraph (b)(8) the term ``FAR 52.212-3'' and adding 
``Federal Acquisition Regulation (FAR) 52.212-3'' in its place;
0
d. Removing from paragraph (e) the phrase ``subpart 4.10 of the Federal 
Acquisition Regulation'' and ``commercial items'' and adding ``FAR 
subpart 4.10'' and ``commercial products or commercial services'' in 
their places, respectively; and
0
e. Removing from paragraph (l)(5) the phrase ``commercial items, the 
make and model of the item'' and adding ``commercial products, the make 
and model of the product'' in its place.
    The revisions read as follows:


52.212-1  Instructions to Offerors--Commercial Products and Commercial 
Services.

* * * * *
Instructions to Offerors--Commercial Products and Commercial Services 
(NOV 2021)
* * * * *

0
204. Amend section 52.212-2 by revising the section heading and the 
heading and date of the provision to read as follows:


52.212-2  Evaluation--Commercial Products and Commercial Services.

* * * * *
Evaluation--Commercial Products and Commercial Services (NOV 2021)
* * * * *

0
205. Amend section 52.212-3 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the provision; and
0
c. Removing from paragraph (b)(2) the term ``Commercial Items'' and 
adding ``Commercial Products and Commercial Services'' in its place.
    The revisions read as follows:


52.212-3  Offeror Representations and Certifications--Commercial 
Products and Commercial Services.

* * * * *
Offeror Representations and Certifications--Commercial Products and 
Commercial Services (NOV 2021)
* * * * *

0
206. Amend section 52.212-4 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause;
0
c. Removing from paragraph (d) the term ``FAR'' and adding ``Federal 
Acquisition Regulation (FAR)'' in its place;
0
d. Removing from paragraph (i)(6)(vii) the phrase ``32.608-2 of the 
Federal Acquisition Regulation'' and adding ``FAR 32.608-2'' in its 
place;
0
e. Revising the date of Alternate I;
0
f. Removing from the introductory text of paragraph (i)(1)(ii)(A) of 
Alternate I the words ``commercial item at'' and adding ``commercial 
product at FAR'' in its place; and
0
g. Removing from paragraph (i)(6)(vii) of Alternate I the phrase 
``32.608-2 of the Federal Acquisition Regulation'' and adding ``FAR 
32.608-2'' in its place.
    The revisions read as follows:


52.212-4  Contract Terms and Conditions--Commercial Products and 
Commercial Services.

* * * * *
Contract Terms and Conditions--Commercial Products and Commercial 
Services (NOV 2021)
* * * * *
    Alternate I (NOV 2021). * * *
* * * * *

0
207. Amend section 52.212-5 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause;
0
c. Removing from paragraph (a) introductory text the term ``commercial 
items'' and adding ``commercial products and commercial services'' in 
its place;
0
d. Removing from paragraph (a)(2) the date ``(JUL 2018)'' and adding 
``(NOV 2021)'' in its place;
0
e. Removing from paragraph (a)(3) the date ``(AUG 2020)'' and adding 
``(NOV 2021)'' in its place;
0
f. In paragraph (b) introductory text:
0
i. Removing the term ``commercial items'' and adding ``commercial 
products and commercial services'' in its place; and
0
ii. Removing the phrase ``[Contracting Officer check as appropriate.]'' 
and adding in its place ``[Contracting Officer check as 
appropriate.]'';
0
g. Removing from paragraph (b)(1) the date ``(OCT 1995)'' and adding 
``(NOV 2021)'' in its place;
0
h. Removing from paragraph (b)(2) the date ``(JUN 2020)'' and adding 
``(NOV 2021)'' in its place;
0
i. Removing from paragraph (b)(8) the date ``(JUN 2020)'' and adding 
``(NOV 2021)'' in its place;
0
j. Removing from paragraph (b)(17)(i) the date ``(SEP 2021)'' and 
adding ``(NOV 2021)'' in its place;
0
k. Removing from paragraph (b)(35)(i) the date ``(OCT 2020)'' and 
adding ``(NOV 2021)'' in its place;
0
l. In paragraph (b)(36):
0
i. Removing the date ``(OCT 2015)'', and adding (NOV 2021) in its 
place; and
0
ii. Removing the terms ``commercial items'' and ``22.1803'' and adding 
``commercial products or commercial services'' and ``FAR 22.1803'' in 
their places, respectively;
0
m. Removing from paragraph (b)(48) the date ``(JAN 2021)'' and adding 
``(NOV 2021)'' in its place;
0
n. Removing from paragraph (b)(49)(i) the date ``(JAN 2021)'' and 
adding ``(NOV 2021)'' in its place;
0
o. Removing from paragraph (b)(56) the term ``Commercial Items'' and 
date ``(FEB 2002)'' and adding ``Commercial Products and Commercial 
Services'' and ``(NOV 2021)'' in their places, respectively;
0
p. Removing from paragraph (b)(57) the term ``Commercial Items'' and 
date ``(JAN 2017)'' and adding ``Commercial Products and Commercial 
Services'' and ``(NOV 2021)'' in their places, respectively;
0
q. Removing from paragraph (b)(63)(i) the date ``(FEB 2006)'' and 
adding ``(NOV 2021)'' in its place;
0
r. Removing from paragraph (b)(63)(iii) the date ``(FEB 2006)'' and 
adding ``(NOV 2021)'' in its place;
0
s. Removing from paragraph (c) introductory text the term ``commercial 
items'' and phrase ``[Contracting Officer check as appropriate.]'' and 
adding ``commercial products and commercial services'' and 
``[Contracting Officer check as appropriate.]'' in their places, 
respectively;
0
t. Removing from paragraph (e)(1) introductory text the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
u. Removing from paragraph (e)(1)(i) the date ``(JUN 2020)'' and adding 
``(NOV 2021)'' in its place;
0
v. Removing from paragraph (e)(1)(iii) the date ``(JUL 2018)'' and 
adding ``(NOV 2021)'' in its place;
0
w. Removing from paragraph (e)(1)(iv) the date ``(AUG 2020)'' and 
adding ``(NOV 2021)'' in its place;
0
x. Removing from paragraph (e)(1)(xiii)(A) the date ``(OCT 2020)'' and 
adding ``(NOV 2021)'' in its place;
0
y. Removing from paragraph (e)(1)(xvi) the date ``(OCT 2015)'' and 
adding ``(NOV 2021)'' in its place;

[[Page 61034]]

0
z. Removing from paragraph (e)(1)(xxii) the date ``(FEB 2006)'' and 
adding ``(NOV 2021)'' in its place;
0
aa. Removing from paragraph (e)(2) the phrase ``May include in its 
subcontracts for commercial items'' and adding ``may include in its 
subcontracts for commercial products and commercial services'' in its 
place;
0
bb. Revising the date of Alternate II;
0
cc. Removing from the introductory text of paragraph (e)(1) of 
Alternate II the term ``commercial items'' and adding ``commercial 
products or commercial services'' in its place;
0
dd. Removing from paragraph (e)(1)(ii)(A) of Alternate II the date 
``(JUN 2020)'' and adding ``(NOV 2021)'' in its place;
0
ee. Removing from paragraph (e)(1)(ii)(C) of Alternate II the date 
``(JUL 2018)'' and adding ``(NOV 2021)'' in its place;
0
ff. Removing from paragraph (e)(1)(ii)(D) of Alternate II the date 
``(AUG 2020)'' and adding ``(NOV 2021)'' in its place;
0
gg. Removing from paragraph (e)(1)(ii)(L)(1) of Alternate II the date 
``(OCT 2020)'' and adding ``(NOV 2021)'' in its place;
0
hh. Removing from paragraph (e)(1)(ii)(O) of Alternate II the date 
``(OCT 2015)'' and adding ``(NOV 2021)'' in its place; and
0
ii. Removing from paragraph (e)(1)(ii)(U) of Alternate II the date 
``(FEB 2006)'' and adding ``(NOV 2021)'' in its place.
    The revisions read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Products and Commercial Services.

* * * * *
Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Products and Commercial Services (NOV 
2021)
* * * * *
    Alternate II (NOV 2021) * * *
* * * * *

0
208. Amend section 52.213-4 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause;
0
c. Removing from paragraph (a)(1)(ii) the date ``(JUL 2018)'' and 
adding in its place ``(NOV 2021)'';
0
d. Removing from paragraph (a)(1)(iii) the date ``(AUG 2020)'' and 
adding in its place ``(NOV 2021)'';
0
e. Removing from paragraph (a)(2)(vi) the date ``(DEC 2013)'' and 
adding in its place ``(NOV 2021)'';
0
f. In paragraph (a)(2)(viii):
0
i. Removing the term ``Commercial Items'' and adding in its place 
``Commercial Products and Commercial Services''; and
0
ii. Removing the date ``(JUL 2021)'' and adding ``(NOV 2021)'' in its 
place;
0
g. Removing from paragraph (b)(1)(viii)(A) the date ``(OCT 2020)'' and 
adding in its place ``(NOV 2021)'';
0
h. Removing from paragraph (b)(1)(xvii) the date ``(JAN 2021)'' and 
adding in its place ``(NOV 2021)'';
0
i. Removing from paragraph (b)(1)(xxi) the date ``(FEB 2006)'' and 
adding in its place ``(NOV 2021)'';
0
j. In paragraph (b)(2)(i):
0
i. Removing the date ``(JUN 2016)'' and adding in its place ``(NOV 
2021)''; and
0
ii. Removing the phrase ``its information system.'' and adding ``its 
information system.)'' in its place; and
0
k. Removing from paragraph (b)(2)(ii) the date ``(JUN 2020)'' and 
adding in its place ``(NOV 2021)''.
    The revisions read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Products and Commercial Services).

* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Products and Commercial Services) (NOV 2021)
* * * * *

0
209. Amend section 52.215-1 by--
0
a. Revising the heading and date of the provision; and
0
b. Removing from paragraph (f)(11)(v) ``commercial items, the make and 
model of the item'' and adding ``commercial products, the make and 
model of the product'' in its place.
    The revisions read as follows:


52.215-1  Instructions to Offerors--Competitive Acquisition.

* * * * *
Instructions to Offerors--Competitive Acquisition (NOV 2021)
* * * * *

0
210. Amend section 52.215-14 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the term ``commercial items'' and adding 
``commercial products and commercial services'' in its place.
    The revision reads as follows:


52.215-14   Integrity of Unit Prices.

* * * * *
Integrity of Unit Prices (NOV 2021)
* * * * *

0
211. Amend section 52.215-20 by--
0
a. Revising the date of the provision; and
0
b. Removing from paragraph (a)(1)(ii) the terms ``Commercial item'' and 
``commercial item'' and adding ``Commercial product and commercial 
service'' and ``commercial product and commercial service'' in their 
places, respectively.
    The revision reads as follows:


52.215-20  Requirements for Certified Cost or Pricing Data and Data 
Other Than Certified Cost or Pricing Data.

* * * * *
Requirements for Certified Cost or Pricing Data and Data Other Than 
Certified Cost or Pricing Data (NOV 2021)
* * * * *

0
212. Amend section 52.215-21 by--
0
a. Revising the date of the clause;
0
b. Removing from the introductory text of paragraph (a)(1)(ii) the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
c. Removing from paragraph (a)(1)(ii)(A)(1) the term ``commercial 
item'' and adding ``commercial product or commercial service'' in its 
place;
0
d. Removing from paragraph (a)(1)(ii)(A)(2) the phrase ``commercial 
item to a contract or subcontract for the acquisition of an item other 
than a commercial item'' and adding ``commercial product or commercial 
service, to a contract or subcontract for the acquisition of other than 
a commercial product or commercial service'' in its place;
0
e. Redesignating paragraph (a)(1)(ii)(B) as paragraph (a)(1)(ii)(B); 
and
0
f. Removing from newly redesignated paragraph (a)(1)(ii)(B) the term 
``commercial item'' and adding ``commercial product and commercial 
service'' in its place.
    The revision reads as follows:


52.215-21  Requirements for Certified Cost or Pricing Data and Data 
Other Than Certified Cost or Pricing Data--Modifications.

* * * * *
Requirements for Certified Cost or Pricing Data and Data Other Than 
Certified Cost or Pricing Data--Modifications (NOV 2021)
* * * * *

0
213. Amend section 52.216-2 by--
0
a. Revising the introductory text;
0
b. Revising the date of the clause; and
0
c. Removing from paragraph (a) the term ``commercial item'' and adding 
``commercial product'' in its place.
    The revisions read as follows:

[[Page 61035]]

52.216-2  Economic Price Adjustment--Standard Supplies.

    As prescribed in 16.203-4(a), insert the following clause:
* * * * *
Economic Price Adjustment--Standard Supplies (NOV 2021)
* * * * *

0
214. Amend section 52.216-3 by--
0
a. Revising the introductory text;
0
b. Revising the date of the clause; and
0
c. Removing from paragraph (a) the term ``commercial item'' and adding 
``commercial product'' in its place.
    The revisions read as follows:


52.216-3  Economic Price Adjustment--Semistandard Supplies.

    As prescribed in 16.203-4(b), insert the following clause:
* * * * *
Economic Price Adjustment--Semistandard Supplies (NOV 2021)
* * * * *

0
215. Amend section 52.216-4 by revising the introductory text to read 
as follows:


52.216-4  Economic Price Adjustment--Labor and Material.

    As prescribed in 16.203-4(c), insert the following clause:
* * * * *

0
216. Amend section 52.216-29 by revising the section heading and the 
heading and date of the provision to read as follows:


52.216-29  Time-and-Materials/Labor-Hour Proposal Requirements--Other 
Than Commercial Acquisition With Adequate Price Competition.

* * * * *
Time-and-Materials/Labor-Hour Proposal Requirements--Other Than 
Commercial Acquisition With Adequate Price Competition (NOV 2021)
* * * * *

0
217. Amend section 52.216-30 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the provision; and
0
c. Removing from paragraph (d) the phrase ``commercial item at 2.101'' 
and adding `` ``commercial service'' at Federal Acquisition Regulation 
2.101'' in its place.
    The revisions read as follows:


52.216-30  Time-and-Materials/Labor-Hour Proposal Requirements--Other 
Than Commercial Acquisition Without Adequate Price Competition.

* * * * *
Time-and-Materials/Labor-Hour Proposal Requirements--Other Than 
Commercial Acquisition Without Adequate Price Competition (NOV 2021)
* * * * *

0
218. Amend section 52.216-31 by revising the section heading and the 
heading and date of the provision to read as follows:


52.216-31  Time-and-Materials/Labor-Hour Proposal Requirements--
Commercial Acquisition.

* * * * *
Time-and-Materials/Labor-Hour Proposal Requirements--Commercial 
Acquisition (NOV 2021)
* * * * *

0
219. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b) the definition of ``Commercial item'';
0
c. Removing from the definition of ``Commercial plan'' the term 
``commercial items'' and adding ``commercial products and commercial 
services'' in its place;
0
d. Adding, in alphabetical order, the definitions ``Commercial 
product'' and ``Commercial service'';
0
e. Removing from paragraph (g) the terms ``commercial items'' and 
``commercial item'' and adding ``commercial products and commercial 
services'' and ``commercial product or commercial service'' in their 
places, respectively; and
0
f. In paragraph (j):
0
i. Removing the term ``52.212-5'' and adding in its place ``FAR 52.212-
5'';
0
ii. Removing the term ``Commercial Items'' wherever it appears and 
adding in its place ``Commercial Products and Commercial Services'';
0
iii. Removing the term ``commercial item'' and adding in its place 
``commercial product or commercial service''; and
0
iv. Removing the term ``52.244-6'' and adding ``FAR 52.244-6'' in its 
place.
    The additions and revisions read as follows:


52.219-9  Small Business Subcontracting Plan.

* * * * *
Small Business Subcontracting Plan (NOV 2021)
* * * * *
    (b) * * *
    Commercial product means a product that satisfies the definition of 
``commercial product'' in Federal Acquisition Regulation (FAR) 2.101.
    Commercial service means a service that satisfies the definition of 
``commercial service'' in FAR 2.101.
* * * * *

0
220. Amend section 52.222-50 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'':
0
i. Removing the word ``means'' in the introductory text; and
0
ii. Revising paragraph (1) introductory text and (1)(i).
    The revisions read as follows:


52.222-50  Combating Trafficking in Persons.

* * * * *
Combating Trafficking in Persons (NOV 2021)
* * * * *
    (a) * * *
    Commercially available off-the-shelf (COTS) item--(1) Means any 
item of supply (including construction material) that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;
* * * * *

0
221. Amend section 52.222-54 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'', revising paragraph (1)(i); and
0
c. Removing from paragraph (e)(1)(i) the term ``Commercial or 
noncommercial services'' and adding ``Services'' in its place.
    The revisions read as follows:


52.222-54  Employment Eligibility Verification.

* * * * *
Employment Eligibility Verification (NOV 2021)
* * * * *
    (a) * * *
    Commercially available off-the-shelf (COTS) item--
    (1) * * *
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;
* * * * *

0
222. Amend section 52.225-1 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'', revising paragraph (1)(i).
    The revisions read as follows:


52.225-1  Buy American--Supplies.

* * * * *

[[Page 61036]]

Buy American--Supplies (NOV 2021)
* * * * *
    (a) * * *
    Commercially available off-the-shelf (COTS) item--(1) * * *
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;
* * * * *

0
223. Amend section 52.225-3 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'', revising paragraph (1)(i).
    The revisions read as follows:


52.225-3   Buy American--Free Trade Agreements--Israeli Trade Act.

* * * * *
Buy American--Free Trade Agreements--Israeli Trade Act (NOV 2021)
* * * * *
    (a) * * *
    Commercially available off-the-shelf (COTS) item--(1) * * *
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;
* * * * *

0
224. Amend section 52.225-9 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'', revising paragraph (1)(i); and
0
c. Removing from paragraph (b)(2) the term ``commercial item'' and 
adding ``commercial product'' in its place.
    The revisions read as follows:


52.225-9   Buy American--Construction Materials.

Buy American--Construction Materials (NOV 2021)
    (a) * * *
    Commercially available off-the-shelf (COTS) item--(1) * * *
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;

0
225. Amend section 52.225-11 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Commercially available off-
the-shelf (COTS) item'', revising paragraph (1)(i); and
0
c. Removing from paragraph (b)(3) the term ``commercial item'' and 
adding ``commercial product'' in its place.
    The revisions read as follows:


52.225-11   Buy American--Construction Materials Under Trade 
Agreements.

* * * * *
Buy American--Construction Materials Under Trade Agreements (NOV 2021)
* * * * *
    (a) * * *
    Commercially available off-the-shelf (COTS) item--(1) * * *
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' at Federal Acquisition Regulation 
(FAR) 2.101;
* * * * *

0
226. Amend section 52.229-13 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the phrases ``in all subcontracts,'' and 
``commercial items'' and adding ``in all subcontracts'' and 
``commercial products or commercial services'' in their places, 
respectively.
    The revision reads as follows:


52.229-13   Taxes--Foreign Contracts in Afghanistan.

* * * * *
Taxes--Foreign Contracts in Afghanistan (NOV 2021)
* * * * *

0
227. Amend section 52.229-14 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the phrases ``in all subcontracts'' and 
``commercial items'' and adding ``in all subcontracts'' and 
``commercial products or commercial services'' in their places, 
respectively.
    The revision reads as follows:


52.229-14   Taxes--Foreign Contracts in Afghanistan (North Atlantic 
Treaty Organization Status of Forces Agreement).

* * * * *
Taxes--Foreign Contracts in Afghanistan (North Atlantic Treaty 
Organization Status of Forces Agreement) (NOV 2021)
* * * * *

0
228. Amend section 52.232-7 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(2) the phrase ``commercial item at 
2.101'' and adding ``commercial product or commercial service in 
Federal Acquisition Regulation (FAR) 2.101'' in its place; and
0
c. Removing from paragraph (b)(4) the phrase ``Subpart 31.2 of the 
Federal Acquisition Regulation (FAR)'' and adding ``FAR subpart 31.2'' 
in its place.
    The revision reads as follows:


52.232-7   Payments under Time-and-Materials and Labor-Hour Contracts.

* * * * *
Payments under Time-and-Materials and Labor-Hour Contracts (NOV 2021)
* * * * *

0
229. Amend section 52.232-16 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (j)(5) introductory text the term 
``commercial item'' and adding ``commercial product or commercial 
service'' in its place; and
0
c. Removing from paragraph (j)(5)(i) the phrase ``commercial item 
purchase that meets the definition and standards for acquisition of 
commercial items in FAR Parts'' and adding ``commercial product or 
commercial service purchase that meets the definition and standards for 
acquisition of commercial products and commercial services in FAR 
parts'' in its place.
    The revision reads as follows:


52.232-16   Progress Payments.

* * * * *
Progress Payments (NOV 2021)
* * * * *

0
230. Amend section 52.232-29 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause;
0
c. Removing from paragraph (b) the phrase ``52.212-4, Contract Terms 
and Conditions--Commercial Items'' and adding ``Federal Acquisition 
Regulation (FAR) 52.212-4, Contract Terms and Conditions--Commercial 
Products and Commercial Services'' in its place; and
0
d. Removing from paragraph (h) the term ``52.232-31'' and adding ``FAR 
52.232-31'' in its place.
    The revisions read as follows:


52.232-29   Terms for Financing of Purchases of Commercial Products and 
Commercial Services.

* * * * *
Terms for Financing of Purchases of Commercial Products and Commercial 
Services (NOV 2021)
* * * * *

0
231. Amend section 52.232-30 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause; and
0
c. Removing from paragraph (g) the phrase ``52.212-4, Contract Terms 
and Conditions--Commercial Items'' and adding ``Federal Acquisition 
Regulation 52.212-4, Contract Terms and Conditions--Commercial Products 
and Commercial Services'' in its place.
    The revisions read as follows:


52.232-30   Installment Payments for Commercial Products and Commercial 
Services.

* * * * *
Installment Payments for Commercial Products and Commercial Services 
(NOV 2021)
* * * * *

[[Page 61037]]


0
232. Amend section 52.232-31 by--
0
a. Revising the date of the provision;
0
b. Removing from paragraph (a) the phrase ``Commercial Items, at 
52.232-29'' and adding ``Commercial Products and Commercial Services, 
at Federal Acquisition Regulation (FAR) 52.232-29'' in its place; and
0
c. Removing from paragraph (b) the phrase ``52.232-29, Terms for 
Financing of Purchases of Commercial Items, the terms of the clause at 
52.232-29 shall govern'' and adding ``FAR 52.232-29, Terms for 
Financing of Purchases of Commercial Products and Commercial Services, 
the terms of the clause at FAR 52.232-29 shall govern'' in its place.
    The revision reads as follows:


52.232-31   Invitation To Propose Financing Terms.

* * * * *
Invitation To Propose Financing Terms (NOV 2021)
* * * * *

0
233. Amend section 52.232-40 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c) the term ``commercial items'' and adding 
``commercial products or commercial services'' in its place.
    The revision reads as follows:


52.232-40   Providing Accelerated Payments to Small Business 
Subcontractors.

* * * * *
Providing Accelerated Payments to Small Business Subcontractors (NOV 
2021)
* * * * *

0
234. Amend section 52.242-17 by revising the introductory text to read 
as follows:


52.242-17   Government Delay of Work.

    As prescribed in 42.1305(c), insert the following clause:
* * * * *

0
235. Amend section 52.244-6 by--
0
a. Revising the section heading;
0
b. Revising the heading and date of the clause;
0
c. Revising paragraph (a);
0
d. Removing from paragraph (b) the term ``commercial items'' and adding 
``commercial products, commercial services,'' in its place;
0
e. Removing from the paragraph (c)(1) introductory text the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
f. Removing from paragraph (c)(1)(i) the date ``(Jun 2020)'' and adding 
``(NOV 2021)'' in its place;
0
g. Removing from paragraph (c)(1)(iv) the date ``(JUN 2016)'' and 
adding ``(NOV 2021)'' in its place;
0
h. Removing from paragraph (c)(1)(v) the date ``(JUL 2018)'' and adding 
``(NOV 2021)'' in its place;
0
i. Removing from paragraph (c)(1)(vi) the date ``(AUG 2020)'' and 
adding ``(NOV 2021)'' in its place;
0
j. Removing from paragraph (c)(1)(xiv)(A) the date ``(OCT 2020)'' and 
adding ``(NOV 2021)'' in its place;
0
k. Removing from paragraph (c)(1)(xix) the date ``(DEC 2013)'' and 
adding ``(NOV 2021)'' in its place;
0
l. Removing from paragraph (c)(1)(xx) the date ``(FEB 2006)'' and 
adding ``(NOV 2021)'' in its place; and
0
m. Removing from paragraph (c)(2) the term ``commercial items'' and 
adding ``commercial products or commercial services'' in its place.
    The revisions read as follows:


52.244-6   Subcontracts for Commercial Products and Commercial 
Services.

* * * * *
Subcontracts for Commercial Products and Commercial Services (NOV 2021)
    (a) Definitions. As used in this clause--
    Commercial product, commercial service, and commercially available 
off-the-shelf item have the meanings contained in Federal Acquisition 
Regulation (FAR) 2.101.
    Subcontract includes a transfer of commercial products or 
commercial services between divisions, subsidiaries, or affiliates of 
the Contractor or subcontractor at any tier.
* * * * *

0
236. Amend section 52.246-26 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (g)(1)(i) the term ``FAR'' and adding 
``Federal Acquisition Regulation (FAR)'' in its place; and
0
c. Removing from paragraph (g)(2)(i) the words ``Commercial items'' and 
adding ``Commercial products and commercial services'' in its place.
    The revision reads as follows:


52.246-26   Reporting Nonconforming Items.

* * * * *
Reporting Nonconforming Items (NOV 2021)
* * * * *

0
237. Amend section 52.247-64 by--
0
a. Revising the date of clause;
0
b. Removing from paragraph (e)(4) introductory text the term 
``commercial items'' and adding ``commercial products or commercial 
services'' in its place;
0
c. Revising the date of Alternate II;
0
d. Removing from paragraph (e)(4) introductory text of Alternate II the 
term ``commercial items'' and adding ``commercial products or 
commercial services'' in its place; and
0
e. Removing from paragraph (e)(4)(ii)(C) of Alternate II the term 
``commercial items'' and adding ``commercial products'' in its place.
    The revisions read as follows:


52.247-64   Preference for Privately Owned U.S.-Flag Commercial 
Vessels.

* * * * *
Preference for Privately Owned U.S.-Flag Commercial Vessels (NOV 2021)
* * * * *
    Alternate II (NOV 2021)
* * * * *

PART 53--FORMS


53.212   [Amended]

0
238. Amend section 53.212 by--
0
a. Revising the section heading;
0
b. Removing the term ``(Rev.2/2012)'' and adding ``(Rev. NOV 2021)'' in 
its place; and
0
c. Removing the terms ``Commercial Items'' and ``commercial items'' and 
adding ``Commercial Products and Commercial Services'' and ``commercial 
products and commercial services'' in their places, respectively.
    The revision reads as follows:


53.212   Acquisition of commercial products and commercial services.

* * * * *


53.213   [Amended]

0
239. Amend section 53.213 by--
0
a. In paragraph (a):
0
i. Removing the date ``(Rev. 2/2012)'' and adding in its place ``(Rev. 
NOV 2021)''; and
0
ii. Removing the words ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in their place; and
0
b. In paragraph (f):
0
i. Removing the date ``(Rev. 2/2012)'' and adding ``(Rev. NOV 2021)'' 
in its place; and
0
ii. Removing the words ``Commercial Items'' and adding ``Commercial 
Products and Commercial Services'' in their place.


53.219   [Amended]

0
240. Amend section 53.219 by removing the date ``(Rev. OCT 2020)'' and 
adding ``(Rev. NOV 2021)'' in its place.

[[Page 61038]]

53.232   [Amended]

0
241. Amend section 53.232 by removing the text ``(Jul 2009)'' and 
adding ``(NOV 2021)'' in its place.

0
242. Amend section 53.300 in paragraph (a) by revising the entry for 
``SF 1449'' to read as follows:


53.300   Listing of Standard, Optional, and Agency forms.

* * * * *
    (a) * * *

               Table 53-1--Forms in the GSA Forms Library
------------------------------------------------------------------------
             Form No.                            Form title
------------------------------------------------------------------------
 
                                * * * * *
SF 1449...........................  Solicitation/Contract/Order for
                                     Commercial Products and Commercial
                                     Services.
 
                                * * * * *
------------------------------------------------------------------------

* * * * *
[FR Doc. 2021-22144 Filed 11-3-21; 8:45 am]
BILLING CODE 6820-EP-P


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