(C) is offered to the Federal Government, without modification, 
in the same form in which it is sold in the commercial market-
place; but 
(2) does not include bulk cargo, as defined in section 40102(4) of 
title 46, such as agricultural products and petroleum products. 
§ 105. Component 
In this subtitle, the term ‘‘component’’ means an item supplied to the 
Federal Government as part of an end item or of another component. 
§ 106. Federal Acquisition Regulation 
In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means the 
regulation issued under section 1303(a)(1) of this title. 
§ 107. Full and open competition 
In this subtitle, the term ‘‘full and open competition’’, when used with 
respect to a procurement, means that all responsible sources are permitted 
to submit sealed bids or competitive proposals on the procurement. 
§ 108. Item and item of supply 
In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’— 
(1) mean an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) do not include packaging or labeling associated with shipment or 
identification of an item. 
§ 109. Major system 
(a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means a 
combination of elements that will function together to produce the capabili-
ties required to fulfill a mission need. These elements may include hardware, 
equipment, software, or a combination of hardware, equipment, and soft-
ware, but do not include construction or other improvements to real prop-
erty. 
(b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed to 
be a major system if— 
(1) the Department of Defense is responsible for the system and the 
total expenditures for research, development, testing, and evaluation for 
the system are estimated to exceed $75,000,000 (based on fiscal year 
1980 constant dollars) or the eventual total expenditure for procure-
ment exceeds $300,000,000 (based on fiscal year 1980 constant dol-
lars); 
(2) a civilian agency is responsible for the system and total expendi-
tures for the system are estimated to exceed the greater of $750,000 
(based on fiscal year 1980 constant dollars) or the dollar threshold for
a major system established by the agency pursuant to Office of Man-
agement and Budget (OMB) Circular A–109, entitled ‘‘Major Systems 
Acquisitions’’; or 
(3) the head of the agency responsible for the system designates the 
system a major system. 
§ 110. Nondevelopmental item 
In this subtitle, the term ‘‘nondevelopmental item’’ means— 
(1) a commercial item; 
(2) a previously developed item of supply that is in use by a depart-
ment or agency of the Federal Government, a State or local govern-
ment, or a foreign government with which the United States has a mu-
tual defense cooperation agreement; 
(3) an item of supply described in paragraph (1) or (2) that requires 
only minor modification or modification of the type customarily avail-
able in the commercial marketplace to meet the requirements of the 
procuring department or agency; or 
(4) an item of supply currently being produced that does not meet 
the requirements of paragraph (1), (2), or (3) solely because the item 
is not yet in use. 
§ 111. Procurement 
In this subtitle, the term ‘‘procurement’’ includes all stages of the process 
of acquiring property or services, beginning with the process for determining 
a need for property or services and ending with contract completion and 
closeout. 
§ 112. Procurement system 
In this subtitle, the term ‘‘procurement system’’ means the integration of 
the procurement process, the professional development of procurement per-
sonnel, and the management structure for carrying out the procurement 
function. 
§ 113. Responsible source 
In this subtitle, the term ‘‘responsible source’’ means a prospective con-
tractor that— 
(1) has adequate financial resources to perform the contract or the 
ability to obtain those resources; 
(2) is able to comply with the required or proposed delivery or per-
formance schedule, taking into consideration all existing commercial 
and Government business commitments; 
(3) has a satisfactory performance record; 
(4) has a satisfactory record of integrity and business ethics;
(5) has the necessary organization, experience, accounting and oper-
ational controls, and technical skills, or the ability to obtain the organi-
zation, experience, controls, and skills; 
(6) has the necessary production, construction, and technical equip-
ment and facilities, or the ability to obtain the equipment and facilities; 
and 
(7) is otherwise qualified and eligible to receive an award under ap-
plicable laws and regulations. 
§ 114. Standards 
In this subtitle, the term ‘‘standards’’ means the criteria for determining 
the effectiveness of the procurement system by measuring the performance 
of the various elements of the system. 
§ 115. Supplies 
In this subtitle, the term ‘‘supplies’’— 
(1) means an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) does not include packaging or labeling associated with shipment 
or identification of an item. 
§ 116. Technical data 
In this subtitle, the term ‘‘technical data’’— 
(1) means recorded information (regardless of the form or method 
of the recording) of a scientific or technical nature (including computer 
software documentation) relating to supplies procured by an agency; 
but 
(2) does not include computer software or financial, administrative, 
cost or pricing, or management data or other information incidental to 
contract administration. 
SUBCHAPTER II—DIVISION B DEFINITIONS 
§ 131. Acquisition 
In division B, the term ‘‘acquisition’’— 
(1) means the process of acquiring, with appropriated amounts, by 
contract for purchase or lease, property or services (including construc-
tion) that support the missions and goals of an executive agency, from 
the point at which the requirements of the executive agency are estab-
lished in consultation with the chief acquisition officer of the executive 
agency; and 
(2) includes—