Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify contracting business with the government. This time with DoD.
DFARS 234.7002 Policy
DoD is granted special contracting privileges because they defend our country. Purchasing major weapon systems (MWS) as if they are a commercial product is one of them.
Authority
Such occurs if the DEf Sec determines COTS status as defined in FAR 2.101 is necessary to meet national security objectives, and the Congressional Defense Committees are informed 30 days prior to either this agency-specific designation or 30 days prior to award of the MWS. The Dep. Def Sec is the lowest possible designated authority to determine this special status.
Subsystems
Subsystems can be considered COTS if the awarded sub is being purchased to compliment a current or past award of a MWS and the CO’s rationale of the designation in accordance with DFARS 212.102(a)(3) and DFARS 212.102(a)(2) is put in writing (a rationale by the CO is only needed if the award is made on a prime contract, a modification to a prime contract or to a subcontract on a prime contract for a subsystem not previously designated).
Commerciality Determination
Such a request must consult DFARS 212.102(a)(3) and DFARS 252.215-7010. Requirements for pricing data require the offeror to present a comparable commercial item sold to the public or non-governmental entities, provide a comparison between the COTS item and the subsystem/components, notify if there is no comparable product or use the closest COTS product for comparison.
Determination Of Price Reasonableness
The CO must consult DFARS 212.209(a) concerning procedures pertaining to market research. The CO must obtain via proposal submission or upon request a comparable purchase of similar pricing, terms and conditions completed by the offeror. If there are no commercial sales, the vendor must locate a similar business agreement made by another company with comparable pricing, terms and conditions as similar to the posted solicitation as possible. The offeror may redact the customer’s name on the provided invoice(s). If the provided comparison is not valid, the CO may request assistance one level higher to request supplemental information. An offeror may submit informational analysis to support their claim of comparable value.
We learned about this at the VA Acquisition Academy per Instructor’s anecdotes. This can be a slippery slope because the MWS is not necessarily a commercial item as most people think of one. You can’t just go to your local big box retail chain store and buy one. It’s a niche market. However, the MWS within DoD is as common as your favorite commercial item is in the big box retail chain store. This is why comparable purchases inside and outside the government as well as informational analysis are pertinent additions to any proposal. The vendor must aid the CO in establishing a fair market value for the MWS if the government has not previously purchased it or if the components have changed significantly or at all.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation. 
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