594
July 2014
PHOTOGRAMMETRIC ENGINEERING & REMOTE SENSING
Appendix 2: Excerpts from FAR 2.101
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“Commercial item” means—
1. Any item, other than real property, that is of a type cus-
tomarily used by the general public or by non-govern-
mental entities for purposes other than governmental
purposes, and—
i. Has been sold, leased, or licensed to the general pub-
lic; or
ii. Has been offered for sale, lease, or license to the gen-
eral public;
2. Any item that evolved from an item described in para-
graph (1) of this definition through advances in tech-
nology 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. Any item that would satisfy a criterion expressed in
paragraphs (1) or (2) of this definition, but for—
i. Modifications of a type customarily available in the
commercial marketplace; or
ii. Minor modifications of a type not customarily avail-
able in the commercial marketplace made to meet
Federal Government requirements. Minor modifi-
cations mean modifications that do not significant-
ly alter the nongovernmental function or essential
physical characteristics of an item or component, or
change the purpose of a process. Factors to be consid-
ered 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 guide-
posts, but are not conclusive evidence that a modifi-
cation is minor;
4. Any combination of items meeting the requirements of
paragraphs (1), (2), (3), or (5) of this definition that are
of a type customarily combined and sold in combination
to the general public;
5. Installation services, maintenance services, repair ser-
vices, training services, and other services if—
i. Such services are procured for support of an item
referred to in paragraph (1), (2), (3), or (4) of this
definition, regardless of whether such services are
provided by the same source or at the same time as
the item; and
ii. The source of such services provides similar ser-
vices contemporaneously to the general public under
terms and conditions similar to those offered to the
Federal Government;
6. Services of a type offered and sold competitively in
substantial quantities in the commercial marketplace
based on established catalog or market prices for spe-
cific 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 cur-
rently, or were last, made to a significant number of
buyers constituting the general public; and
ii. “Market prices” means current prices that are estab-
lished in the course of ordinary trade between buyers
and sellers free to bargain and that can be substan-
tiated through competition or from sources indepen-
dent of the offerers.
7. Any item, combination of items, or service referred to in
paragraphs (1) through (6) of this definition, notwith-
standing the fact that the item, combination of items, or
service is transferred between or among separate divi-
sions, subsidiaries, or affiliates of a contractor; or
8. A non developmental item, if the procuring agency de-
termines the item was developed exclusively at private
expense and sold in substantial quantities, on a com-
petitive basis, to multiple State and local governments.
