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ery requirements under a Federal Government 
solicitation. 
‘‘(3) A product that would satisfy the criteria in 
paragraph (1) or (2) were it not for— 
‘‘(A) modifications of a type customarily 
available in the commercial marketplace; or 
‘‘(B) minor modifications made to meet 
Federal Government requirements. 
‘‘(4) Any combination of products meeting the 
requirements of paragraph (1), (2), or (3) that are 
of a type customarily combined and sold in combina-
tion to the general public. 
‘‘(5) A product, or combination of products, re-
ferred to in paragraphs (1) through (4), even though 
the product, or combination of products, is trans-
ferred between or among separate divisions, subsidi-
aries, or affiliates of a contractor. 
‘‘(6) A nondevelopmental item if the procuring 
agency determines, in accordance with conditions in 
the Federal Acquisition Regulation, that— 
‘‘(A) the product was developed exclusively 
at private expense; and 
‘‘(B) has been sold in substantial quan-
tities, on a competitive basis, to multiple State 
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and local governments or to multiple foreign 
governments. 
‘‘§ 103a. Commercial service 
‘‘In this subtitle, the term ‘commercial service’ means 
any of the following: 
‘‘(1) Installation services, maintenance services, 
repair services, training services, and other services 
if— 
‘‘(A) those services are procured for sup-
port of a commercial product, regardless of 
whether the services are provided by the same 
source or at the same time as the commercial 
product; and 
‘‘(B) the source of the services provides 
similar services contemporaneously to the gen-
eral public under terms and conditions similar 
to those offered to the Federal Government; 
‘‘(2) Services of a type offered and sold com-
petitively, in substantial quantities, in the commer-
cial marketplace— 
‘‘(A) based on established catalog or mar-
ket prices; 
‘‘(B) for specific tasks performed or spe-
cific outcomes to be achieved; and 
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‘‘(C) under standard commercial terms and 
conditions. 
‘‘(3) A service described in paragraph (1) or 
(2), even though the service is transferred between 
or among separate divisions, subsidiaries, or affili-
ates of a contractor.’’. 
(2) CONFORMING AMENDMENTS TO TITLE 41 
DEFINITIONS.— 
(A) DEFINITION OF COMMERCIAL COMPO-
NENT.—Section 102 of such title is amended by 
striking ‘‘commercial item’’ and inserting ‘‘com-
mercial product’’. 
(B) 
DEFINITION
OF
COMMERCIALLY 
AVAILABLE
OFF-THE-SHELF
ITEM.—Section 
104(1)(A) is amended by striking ‘‘commercial 
item’’ and inserting ‘‘commercial product’’. 
(C) DEFINITION OF NONDEVELOPMENTAL 
ITEM.—Section 110(1) of such title is amended 
by striking ‘‘commercial item’’ and inserting 
‘‘commercial product’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1 of title 41, 
United States Code, is amended by striking the item 
relating to section 103 and inserting the following 
new items: 
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‘‘103. Commercial product. 
‘‘103a. Commercial service.’’. 
(b) CONFORMING AMENDMENTS TO OTHER PROVI-
SIONS OF TITLE 41, UNITED STATES CODE.—Title 41, 
United States Code, is further amended as follows: 
(1) Section 1502(b) is amended— 
(A) in paragraph (1)(A), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’; 
(B) in paragraph (1)(C)(i), by striking 
‘‘commercial item’’ and inserting ‘‘commercial 
product or commercial service’’; and 
(C) in paragraph (3)(A)(i), by striking 
‘‘commercial items’’ and inserting ‘‘commercial 
products or commercial services’’. 
(2) Section 1705(c) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts and commercial services’’. 
(3) Section 1708 is amended by striking ‘‘com-
mercial items’’ in subsections (c)(6) and (e)(3) and 
inserting ‘‘commercial products or commercial serv-
ices’’. 
(4) Section 1901 is amended— 
(A) in subsection (a)(2), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’; and 
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(B) in subsection (e)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ 
in the subsection heading and inserting 
‘‘COMMERCIAL PRODUCTS
AND COMMER-
CIAL SERVICES’’; and 
(ii) by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or 
commercial services’’. 
(5) Section 1903(c) is amended— 
(A) in the subsection heading, by striking 
‘‘COMMERCIAL ITEM’’ and inserting ‘‘COMMER-
CIAL PRODUCT OR COMMERCIAL SERVICE’’; 
(B) in paragraph (1), by striking ‘‘as a 
commercial item’’ and inserting ‘‘as a commer-
cial product or a commercial service’’; and 
(C) in paragraph (2), by striking ‘‘for an 
item or service treated as a commercial item’’ 
and inserting ‘‘for a product or service treated 
as a commercial product or a commercial serv-
ice’’. 
(6)(A) Section 1906 is amended by striking 
‘‘commercial items’’ each place it appears in sub-
sections (b), (c), and (d) and inserting ‘‘commercial 
products or commercial services’’. 
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(B)(i) The heading of such section is amended 
to read as follows: 
‘‘§ 1906. List of laws inapplicable to procurements of 
commercial products and commercial 
services’’. 
(ii) The table of sections at the beginning of 
chapter 19 is amended by striking the item relating 
to section 1906 and inserting the following new 
item: 
‘‘1906. List of laws inapplicable to procurements of commercial products and 
commercial services.’’. 
(7) Section 3304 is amended by striking ‘‘com-
mercial item’’ in subsections (a)(5) and (e)(4)(B) 
and inserting ‘‘commercial product’’. 
(8) Section 3305(a)(2) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(9) Section 3306(b) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(10)(A) Section 3307 is amended— 
(i) in subsection (a)— 
(I) by striking ‘‘COMMERCIAL ITEMS’’ 
in the subsection heading and inserting 
‘‘COMMERCIAL PRODUCTS
AND COMMER-
CIAL SERVICES’’; 
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(II) in paragraph (1), by striking 
‘‘commercial items’’ and inserting ‘‘com-
mercial products and commercial services’’; 
and 
(III) in paragraph (2), by striking ‘‘a 
commercial item’’ and inserting ‘‘a com-
mercial product or commercial service’’; 
(ii) in subsection (b)— 
(I) in paragraph (2), by striking 
‘‘commercial items or, to the extent that 
commercial items suitable to meet the ex-
ecutive agency’s needs are not available, 
nondevelopmental items other than com-
mercial items’’ and inserting ‘‘commercial 
services or commercial products or, to the 
extent that commercial products suitable to 
meet the executive agency’s needs are not 
available, nondevelopmental items other 
than commercial products’’; and 
(II) in paragraph (3), by striking 
‘‘commercial items and nondevelopmental 
items other than commercial items’’ and 
inserting ‘‘commercial services, commercial 
products, 
and 
nondevelopmental 
items 
other than commercial products’’; 
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(iii) in subsection (c)— 
(I) in paragraphs (1) and (2), by 
striking ‘‘commercial items or nondevelop-
mental items other than commercial items’’ 
and inserting ‘‘commercial services or com-
mercial 
products 
or 
nondevelopmental 
items other than commercial products’’; 
(II) in paragraphs (3) and (4), by 
striking ‘‘commercial items or, to the ex-
tent that commercial items suitable to 
meet the executive agency’s needs are not 
available, nondevelopmental items other 
than commercial items’’ and inserting 
‘‘commercial services or commercial prod-
ucts or, to the extent that commercial 
products suitable to meet the executive 
agency’s needs are not available, non-
developmental items other than commercial 
products’’; and 
(III) in paragraphs (5) and (6), by 
striking ‘‘commercial items’’ and inserting 
‘‘commercial 
products 
and 
commercial 
services’’; 
(iv) in subsection (d)(2), by striking ‘‘com-
mercial items or, to the extent that commercial 
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items suitable to meet the executive agency’s 
needs are not available, nondevelopmental items 
other than commercial items’’ and inserting 
‘‘commercial services or commercial products 
or, to the extent that commercial products suit-
able to meet the executive agency’s needs are 
not available, nondevelopmental items other 
than commercial products’’; and 
(v) in subsection (e)— 
(I) in paragraph (1), by inserting 
‘‘103a, 104,’’ after ‘‘sections 102, 103,’’; 
(II) in paragraph (2)(A), by striking 
‘‘commercial items’’ and inserting ‘‘com-
mercial products or commercial services’’; 
(III) in the first sentence of para-
graph (2)(B), by striking ‘‘commercial end 
items’’ and inserting ‘‘end items that are 
commercial products’’; 
(IV) in paragraphs (2)(B)(i), (2)(C)(i) 
and (2)(D), by striking ‘‘commercial items 
or commercial components’’ and inserting 
‘‘commercial products, commercial compo-
nents, or commercial services’’; 
(V) in paragraph (2)(C), in the mat-
ter preceding clause (i), by striking ‘‘com-
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mercial items’’ and inserting ‘‘commercial 
products or commercial services’’; 
(VI) in paragraph (4)(A), by striking 
‘‘commercial items’’ and inserting ‘‘com-
mercial products or commercial services’’; 
(VII) in paragraph (4)(C)(i), by strik-
ing ‘‘commercial item, as described in sec-
tion 103(5)’’ and inserting ‘‘commercial 
product, as described in section 103a(1)’’; 
and 
(VIII) in paragraph (5), by striking 
‘‘items’’ each place it appears and insert-
ing ‘‘products’’. 
(B)(i) The heading of such section is amended 
to read as follows: 
‘‘§ 3307. Preference for commercial products and 
commercial services’’. 
(ii) The table of sections at the beginning of 
chapter 33 is amended by striking the item relating 
to section 3307 and inserting the following new 
item: 
‘‘3307. Preference for commercial products and commercial services.’’. 
(11) Section 3501 is amended— 
(A) in subsection (a)— 
(i) by striking paragraph (1); 
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(ii) by redesignating paragraphs (2) 
and (3) as paragraphs (1) and (2), respec-
tively; and 
(iii) in paragraph (2) (as so redesig-
nated), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or 
commercial services’’; and 
(B) in subsection (b)— 
(i) by striking ‘‘ITEM’’ in the heading 
for paragraph (1); and 
(ii) by striking ‘‘commercial items’’ in 
paragraphs (1) and (2)(A) and inserting 
‘‘commercial services’’. 
(12) Section 3503 is amended— 
(A) in subsection (a)(2), by striking ‘‘a 
commercial item’’ and inserting ‘‘a commercial 
product or a commercial service’’; and 
(B) in subsection (b)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ 
in the subsection heading and inserting 
‘‘COMMERCIAL
PRODUCTS
OR
COMMER-
CIAL SERVICES’’; and 
(ii) by striking ‘‘a commercial item’’ 
each place it appears and inserting ‘‘a 
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commercial product or a commercial serv-
ice’’. 
(13) Section 3505(b) is amended by striking 
‘‘commercial items’’ each place it appears and in-
serting ‘‘commercial products or commercial serv-
ices’’. 
(14) Section 3509(b) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(15) Section 3704(c)(5) is amended by striking 
‘‘commercial item’’ and inserting ‘‘commercial prod-
uct’’. 
(16) Section 3901(b)(3) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(17) Section 4301(2) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(18)(A) Section 4505 is amended by striking 
‘‘commercial items’’ in subsections (a) and (c) and 
inserting ‘‘commercial products or commercial serv-
ices’’. 
(B)(i) The heading of such section is amended 
to read as follows: 
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‘‘§ 4505. Payments for commercial products and com-
mercial services’’. 
(ii) The table of sections at the beginning of 
chapter 45 is amended by striking the item relating 
to section 4505 and inserting the following new 
item: 
‘‘4505. Payments for commercial products and commercial services.’’. 
(19) Section 4704(d) is amended by striking 
‘‘commercial items’’ both places it appears and in-
serting ‘‘commercial products or commercial serv-
ices’’. 
(20) Sections 8102(a)(1), 8703(d)(2), and 
8704(b) are amended by striking ‘‘commercial items 
(as defined in section 103 of this title)’’ and insert-
ing ‘‘commercial products or commercial services (as 
defined in sections 103 and 103a, respectively, of 
this title)’’. 
(c) AMENDMENTS TO CHAPTER 137 OF TITLE 10, 
UNITED STATES CODE.—Chapter 137 of title 10, United 
States Code, is amended as follows: 
(1) Section 2302(3) is amended— 
(A) by redesignating subparagraphs (J), 
(K), and (L) as subparagraphs (K), (L), and 
(M); and 
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(B) by striking subparagraph (I) and in-
serting the following new subparagraphs (I) and 
(J): 
‘‘(I) The term ‘commercial product’. 
‘‘(J) The term ‘commercial service’.’’. 
(2) Section 2304 is amended— 
(A) in subsections (c)(5) and (f)(2)(B), by 
striking ‘‘brand-name commercial item’’ and in-
serting ‘‘brand-name commercial product’’; 
(B) in subsection (g)(1)(B), by striking 
‘‘commercial items’’ and inserting ‘‘commercial 
products or commercial services’’; and 
(C) in subsection (i)(3), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial prod-
ucts’’. 
(3) Section 2305 is amended— 
(A) in subsection (a)(2), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’; and 
(B) in subsection (b)(5)(B)(v), by striking 
‘‘commercial item’’ and inserting ‘‘commercial 
product’’. 
(4) Section 2306(b) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts or commercial services’’. 
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(5) Section 2306a is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(B), by striking 
‘‘a commercial item’’ and inserting ‘‘a com-
mercial product or a commercial service’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘COMMERCIAL 
ITEMS’’ in the paragraph heading and 
inserting ‘‘COMMERCIAL
PRODUCTS 
OR COMMERCIAL SERVICES’’; and 
(II) 
by 
striking 
‘‘commercial 
item’’ each place it appears and in-
serting ‘‘commercial product or com-
mercial services’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘COMMERCIAL 
ITEMS’’ in the paragraph heading and 
inserting ‘‘COMMERCIAL
PRODUCTS’’; 
and 
(II) by striking ‘‘item’’ each place 
it appears and inserting ‘‘product’’; 
and 
(iv) in paragraph (4)— 
(I) by striking ‘‘COMMERCIAL 
ITEM’’ in the paragraph heading and 
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inserting ‘‘COMMERCIAL PRODUCT OR 
COMMERCIAL SERVICE’’; 
(II) 
by 
striking 
‘‘commercial 
item’’ in subparagraph (A) after ‘‘ap-
plying the’’; 
(III) by striking ‘‘prior commer-
cial item determination’’ in subpara-
graph (A) and inserting ‘‘prior com-
mercial product or commercial service 
determination’’; 
(IV) by striking ‘‘of such item’’ 
in subparagraph (A) and inserting ‘‘of 
such product or service’’; 
(V) by striking ‘‘of an item pre-
viously determined to be a commercial 
item’’ in subparagraph (B) and insert-
ing ‘‘of a product or service previously 
determined to be a commercial prod-
uct or a commercial service’’; 
(VI) by striking ‘‘of a commercial 
item,’’ in subparagraph (B) and in-
serting ‘‘of a commercial product or a 
commercial service, as the case may 
be,’’; 
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(VII) by striking ‘‘the commer-
cial item determination’’ in subpara-
graph (B) and inserting ‘‘the commer-
cial product or commercial service de-
termination’’; and 
(VIII) by striking ‘‘commercial 
item’’ in subparagraph (C); and 
(v) in paragraph (5), by striking 
‘‘commercial items’’ and inserting ‘‘com-
mercial products or commercial services’’; 
(B) in subsection (d)(2), by striking ‘‘com-
mercial items’’ each place it appears and insert-
ing ‘‘commercial products or commercial serv-
ices’’; and 
(C) in subsection (h)— 
(i) in paragraph (2), by striking 
‘‘commercial items’’ and inserting ‘‘com-
mercial products or commercial services’’; 
and 
(ii) by striking paragraph (3). 
(6) Section 2307(f) is amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in 
the subsection heading and inserting ‘‘COMMER-
CIAL PRODUCTS AND COMMERCIAL SERVICES’’; 
and 
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‘‘2380a. Treatment of certain products and services as commercial products and 
commercial services. 
‘‘2380b. Treatment of commingled items purchased by contractors as commer-
cial products.’’. 
(e) OTHER AMENDMENTS TO TITLE 10, UNITED 
STATES CODE.—Title 10, United States Code, is further 
amended as follows: 
(1) Section 2226(b) is amended by striking ‘‘for 
services’’ and all that follows through ‘‘deliverable 
items’’ and inserting ‘‘for services or deliverable 
items’’. 
(2) Section 2384(b)(2) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts’’. 
(3) Section 2393(d) is amended by striking 
‘‘commercial items (as defined in section 103 of title 
41)’’ and inserting ‘‘commercial products or com-
mercial services (as defined in sections 103 and 
103a, respectively, of title 41)’’. 
(4) Section 2402(d) is amended— 
(A) in paragraph (1), by striking ‘‘com-
mercial items’’ both places it appears and in-
serting ‘‘commercial products or commercial 
services’’; and 
(B) in paragraph (2), by striking ‘‘the 
term’’ and all that follows and inserting ‘‘the 
terms ‘commercial product’ and ‘commercial 
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(8) Section 856(a)(1) of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 
114–92; 10 U.S.C. 2377 note) is amended by strik-
ing ‘‘commercial items or services’’ and inserting ‘‘a 
commercial product or a commercial service, as de-
fined in sections 103 and 103a, respectively, of title 
41,’’. 
(9) Section 879 of the National Defense Au-
thorization Act for Fiscal Year 2017 (Public Law 
114–328; 10 U.S.C. 2302 note) is amended— 
(A) in the section heading, by striking 
‘‘COMMERCIAL ITEMS’’ and inserting ‘‘COM-
MERCIAL PRODUCTS’’; 
(B) in subsection (a), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial prod-
ucts’’; 
(C) in subsection (c)(3)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ 
in the paragraph heading and inserting 
‘‘COMMERCIAL PRODUCTS OR COMMERCIAL 
SERVICES’’; and 
(ii) by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or 
commercial services’’; and 
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