(A) those services are procured for support of an item referred 
to in paragraph (1), (2), (3), or (4), regardless of whether the 
services are provided by the same source or at the same time as 
the item; and 
(B) the source of the services provides similar services contem-
poraneously to the general public under terms and conditions simi-
lar to those offered to the Federal Government; 
(6) services offered and sold competitively, in substantial quantities, 
in the commercial marketplace based on established catalog or market 
prices for specific tasks performed or specific outcomes to be achieved 
and under standard commercial terms and conditions; 
(7) any item, combination of items, or service referred to in para-
graphs (1) to (6) even though the item, combination of items, or service 
is transferred between or among separate divisions, subsidiaries, or af-
filiates of a contractor; or 
(8) a nondevelopmental item if the procuring agency determines, in 
accordance with conditions in the Federal Acquisition Regulation, that 
the item was developed exclusively at private expense and has been sold 
in substantial quantities, on a competitive basis, to multiple State and 
local governments. 
§ 104. Commercially available off-the-shelf item 
In this subtitle, the term ‘‘commercially available off-the-shelf item’’— 
(1) means an item that— 
(A) is a commercial item (as described in section 103(1) of this 
title); 
(B) is sold in substantial quantities in the commercial market-
place; and 
(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. 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS
§ 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-
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS
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. 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS