(1) requirements of the executive agency with respect to a procure-
ment of supplies or services are stated in terms of— 
(A) functions to be performed; 
(B) performance required; or 
(C) essential physical characteristics; 
(2) those requirements are defined so that commercial items or, to 
the extent that commercial items suitable to meet the executive agen-
cy’s needs are not available, nondevelopmental items other than com-
mercial items may be procured to fulfill those requirements; and 
(3) offerors of commercial items and nondevelopmental items other 
than commercial items are provided an opportunity to compete in any 
procurement to fill those requirements. 
(c) IMPLEMENTATION.—The head of each executive agency shall ensure 
that procurement officials in that executive agency, to the maximum extent 
practicable— 
(1) acquire commercial items or nondevelopmental items other than 
commercial items to meet the needs of the executive agency; 
(2) require that prime contractors and subcontractors at all levels 
under contracts of the executive agency incorporate commercial items 
or nondevelopmental items other than commercial items as components 
of items supplied to the executive agency; 
(3) modify requirements in appropriate cases to ensure that the re-
quirements can be met by commercial items or, to the extent that com-
mercial items suitable to meet the executive agency’s needs are not 
available, nondevelopmental items other than commercial items; 
(4) state specifications in terms that enable and encourage bidders 
and offerors to supply commercial items or, to the extent that commer-
cial items suitable to meet the executive agency’s needs are not avail-
able, nondevelopmental items other than commercial items in response 
to the executive agency solicitations; 
(5) revise the executive agency’s procurement policies, practices, and 
procedures not required by law to reduce any impediments in those 
policies, practices, and procedures to the acquisition of commercial 
items; and 
(6) require training of appropriate personnel in the acquisition of 
commercial items. 
(d) MARKET RESEARCH.— 
(1) WHEN TO BE USED.—The head of an executive agency shall con-
duct market research appropriate to the circumstances— 
(A) before developing new specifications for a procurement by 
that executive agency; and 
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(B) before soliciting bids or proposals for a contract in excess 
of the simplified acquisition threshold. 
(2) USE OF RESULTS.—The head of an executive agency shall use 
the results of market research to determine whether commercial items 
or, to the extent that commercial items suitable to meet the executive 
agency’s needs are not available, nondevelopmental items other than 
commercial items are available that— 
(A) meet the executive agency’s requirements; 
(B) could be modified to meet the executive agency’s require-
ments; or 
(C) could meet the executive agency’s requirements if those re-
quirements were modified to a reasonable extent. 
(3) ONLY MINIMUM INFORMATION REQUIRED TO BE SUBMITTED.— 
In conducting market research, the head of an executive agency should 
not require potential sources to submit more than the minimum infor-
mation that is necessary to make the determinations required in para-
graph (2). 
(e) REGULATIONS.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall provide 
regulations to implement this section, sections 102, 103, 105, and 110 
of this title, and chapter 140 of title 10. 
(2) CONTRACT CLAUSES.— 
(A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ 
includes a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor. 
(B) LIST OF CLAUSES TO BE INCLUDED.—The regulations pre-
scribed under paragraph (1) shall contain a list of contract clauses 
to be included in contracts for the acquisition of commercial end 
items. To the maximum extent practicable, the list shall include 
only those contract clauses that are— 
(i) required to implement provisions of law or executive or-
ders applicable to acquisitions of commercial items or com-
mercial components; or 
(ii) determined to be consistent with standard commercial 
practice. 
(C) REQUIREMENTS OF PRIME CONTRACTOR.—The regulations 
shall provide that the Federal Government shall not require a 
prime contractor to apply to any of its divisions, subsidiaries, af-
filiates, subcontractors, or suppliers that are furnishing commer-
cial items any contract clause except those that are— 
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(i) required to implement provisions of law or executive or-
ders applicable to subcontractors furnishing commercial items 
or commercial components; or 
(ii) determined to be consistent with standard commercial 
practice. 
(D) CLAUSES THAT MAY BE USED IN A CONTRACT.—To the 
maximum extent practicable, only the contract clauses listed pur-
suant to subparagraph (B) may be used in a contract, and only 
the contract clauses referred to in subparagraph (C) may be re-
quired to be used in a subcontract, for the acquisition of commer-
cial items or commercial components by or for an executive agen-
cy. 
(E) WAIVER OF CONTRACT CLAUSES.—The Federal Acquisition 
Regulation shall provide standards and procedures for waiving the 
use of contract clauses required pursuant to subparagraph (B), 
other than those required by law, including standards for deter-
mining the cases in which a waiver is appropriate. 
(3) MARKET ACCEPTANCE.— 
(A) REQUIREMENT
OF
OFFERORS.—The Federal Acquisition 
Regulation shall provide that under appropriate conditions the 
head of an executive agency may require offerors to demonstrate 
that the items offered— 
(i) have achieved commercial market acceptance or been 
satisfactorily supplied to an executive agency under current or 
recent contracts for the same or similar requirements; and 
(ii) otherwise meet the item description, specifications, or 
other criteria prescribed in the public notice and solicitation 
relating to the contract. 
(B) REGULATION TO PROVIDE GUIDANCE ON CRITERIA.—The 
Federal Acquisition Regulation shall provide guidance to ensure 
that the criteria for determining commercial market acceptance in-
clude the consideration of— 
(i) the minimum needs of the executive agency concerned; 
and 
(ii) the entire relevant commercial market, including small 
businesses. 
(4) PROVISIONS RELATING TO TYPES OF CONTRACTS.— 
(A) TYPES OF CONTRACTS THAT MAY BE USED.—The Federal 
Acquisition Regulation shall include, for acquisitions of commercial 
items— 
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