DoD issued a final rule DFARS Case 2023-D010 on May 30, 2024, amending The Defense Federal Acquisition Regulation Supplement (DFARS) implementing Section 803 of the National Defense Authorization Act on data required in support of commerciality determinations and price reasonableness under procurements for major weapon systems. The purpose is to provide additional guidance related to the data required to support a request for a commercial determination and the price reasonableness process.
What if My Product/Service Was Already Determined Commercial?
When a government determination exists, contractors only need to provide the contract number, military department, or other DoD component that made the determination along with the Government point of contacts. If a prime contractor has made a commercial determination, you will still need to submit the required data below. However, we recommend you include a copy of the prime determination.
What are the Requirements for Requesting a Commercial Determination?
This rule applies to products in support of a major weapon system (e.g., subsystem, component, or spare part) submitted by contractors under FAR 2.101 Commercial Product definitions (1) through (5) that DoD has not determined commercial. DFARS 252.215-7010 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data requires contractors requesting a contracting officer determination to provide the following:
- Identify the comparable commercial product the offeror sells to the general public or nongovernmental entities for other than governmental purposes;
- Provide a comparison between the physical characteristics and functionality of the comparable commercial product and the subsystem, component, or spare part, including—
- a description of the modification and documentation to support that the modification is customarily available in the marketplace; or
- a detailed description of the modification and detailed technical data to demonstrate that the modification is minor (e.g., information on production processes and material differences)
- Provide the national stock number (NSN) for the comparable commercial product, if applicable
- If the offeror does not sell a comparable commercial product to the general public the offeror is required to—
- Notify the contracting officer in writing; and
- Provide the contracting officer a comparison between the physical characteristics and functionality of the most comparable commercial product in the commercial market.
While these requirements are for subsystems, components and spare parts on major weapon systems, based on my experience with the DCMA Commercial Item Group (CIG), we believe this information will be required for all commercial determinations since the purpose is to expedite the process. In addition, the government’s expectation is that the comparison of products will be presented in a table format. We recommend contractors create and include a comparison table with characteristics specific to your product in the assertion; otherwise DCMA CIG will request you complete their standard table with an extensive list of attributes some of which are not applicable to your product.
Redstone GCI can assist your company by reviewing your commercial assertion or determination, conducting price analysis on commercial products and services, drafting written policies and procedures, and providing training on commercial determinations.
Lynne is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to Commercial Item Determinations and support, Cost Accounting Standards, DFARS Business System Audits, Proposals, and Incurred Cost. Prior to joining Redstone Government Consulting, Lynne served in several capacities with DCAA and DCMA for over 35 years. Professional Experience Lynne began her career working with DCAA in the Honeywell Resident Office, Clearwater, FL in 1984. Lynne’s experience included various positions which involved conducting or reviewing forward proposals or rate audits, financial capability audits, progress payments, accounting and estimating systems, cost accounting standards, claims and disclosure statement reviews. She is an expert in FAR, DFARS, CAS and testified as an expert witness. Lynne assisted in drafting the commercial item guidance for DCAA Headquarters. Lynne was assigned as a Regional Technical Specialist where she provided guidance to 20 field offices on highly complex or technical issues relative to forward pricing, financial capability or progress payment issues. As an Assistant for Quality, she was involved in reviewing and ensuring audit reports were in compliance with policy and GAGAS as well as made NASBA certified presentations to the staff including but not limited to billing reviews, CAS, unallowable cost and progress payments. To enhance her experience in government contracting, Lynne accepted a position with DCMA in 2015 as part of the newly organized DCMA Cadre of Experts in the Commercial Item Group. This included performing reviews of prime contractor’s assertions and/or commercial item determinations as well as performing price analyses. Lynne was a project lead and later became a lead analyst where she engaged with the buying commands on requests and reviewed price analysis reviews performed by a team of 5 analysts. She also assisted the DCMA CPSR team relative to commercial items and co-instructed the Commercial Item Training presented to DCMA. Education Lynne earned a Bachelor of Science Degree in Accounting from the University of Central Florida. Certifications State of Florida Certified Public Accountant State of Alabama Certified Public Accountant Defense Acquisition Workforce Improvement Act (DAWIA) Level III- Auditing DAWIA Level III – Contracting