Source: http://www.wifcon.com/dodauth19/dod19_836.htm
Timestamp: 2018-09-20 01:35:46
Document Index: 469634784

Matched Legal Cases: ['§ 103', '§ 103', '§ 1906', '§ 3307', '§ 4505', '§ 2375', '§ 2377', '§ 2379', '§ 2380', '§ 2380', '§ 2380']

Subtitle D — Provisions Relating to Commercial Items
House Conference Report. 115-874
SEC. 836. REVISION OF DEFINITION OF COMMERCIAL ITEM FOR PURPOSES OF FEDERAL ACQUISITION STATUTES.
(a) Definitions In Chapter 1 Of Title 41, United States Code.—
(1) SEPARATION OF commercial item DEFINITION INTO DEFINITIONS OF commercial product AND commercial service.—Chapter 1 of title 41, United States Code, is amended by striking section 103 and inserting the following new sections:
“§ 103. Commercial product
“In this subtitle, the term ‘commercial product’ means any of the following:
“(1) A product, other than real property, that—
“(A) is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes; and
“(B) has been sold, leased, or licensed, or offered for sale, lease, or license, to the general public.
“(2) A product that—
“(A) evolved from a product described in paragraph (1) through advances in technology or performance; and
“(B) is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery 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 combination to the general public.
“(5) A product, or combination of products, referred to in paragraphs (1) through (4), even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, 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 quantities, on a competitive basis, to multiple State 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 support 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 general public under terms and conditions similar to those offered to the Federal Government;
“(2) Services of a type offered and sold competitively, in substantial quantities, in the commercial marketplace—
“(A) based on established catalog or market prices;
“(B) for specific tasks performed or specific outcomes to be achieved; and
“(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 affiliates of a contractor.”.
(2) CONFORMING AMENDMENTS TO TITLE 41 DEFINITIONS.—
(A) DEFINITION OF COMMERCIAL COMPONENT.—Section 102 of such title is amended by striking “commercial item” and inserting “commercial 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 sections 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:
“103. Commercial product.
“103a. Commercial service.”.
(b) Conforming Amendments To Other Provisions 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 “commercial items” and inserting “commercial products 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 products and commercial services”.
(3) Section 1708 is amended by striking “commercial items” in subsections (c)(6) and (e)(3) and inserting “commercial products or commercial services”.
(4) Section 1901 is amended—
(A) in subsection (a)(2), by striking “commercial items” and inserting “commercial products or commercial services”; and
(i) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products And Commercial 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 “Commercial Product Or Commercial Service”;
(B) in paragraph (1), by striking “as a commercial item” and inserting “as a commercial 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 service”.
(6) (A) Section 1906 is amended by striking “commercial items” each place it appears in subsections (b), (c), and (d) and inserting “commercial products or commercial services”.
(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 “commercial 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 products or commercial services”.
(9) Section 3306(b) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(10) (A) Section 3307 is amended—
(I) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products And Commercial Services”;
(II) in paragraph (1), by striking “commercial items” and inserting “commercial products and commercial services”; and
(III) in paragraph (2), by striking “a commercial item” and inserting “a commercial product or commercial service”;
(I) in paragraph (2), by striking “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” 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”;
(iii) in subsection (c)—
(I) in paragraphs (1) and (2), by striking “commercial items or nondevelopmental items other than commercial items” and inserting “commercial services or commercial products or nondevelopmental items other than commercial products”;
(II) in paragraphs (3) and (4), by striking “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” 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
(III) in paragraphs (5) and (6), by striking “commercial items” and inserting “commercial products and commercial services”;
(iv) in subsection (d)(2), by striking “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” 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
(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 “commercial products or commercial services”;
(III) in the first sentence of paragraph (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 components, or commercial services”;
(V) in paragraph (2)(C), in the matter preceding clause (i), by striking “commercial items” and inserting “commercial products or commercial services”;
(VI) in paragraph (4)(A), by striking “commercial items” and inserting “commercial products or commercial services”;
(VII) in paragraph (4)(C)(i), by striking “commercial item, as described in section 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 inserting “products”.
“§ 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—
(ii) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and
(iii) in paragraph (2) (as so redesignated), by striking “commercial items” and inserting “commercial products or commercial services”; and
(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
(i) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products Or Commercial Services”; and
(ii) by striking “a commercial item” each place it appears and inserting “a commercial product or a commercial service”.
(13) Section 3505(b) is amended by striking “commercial items” each place it appears and inserting “commercial products or commercial services”.
(14) Section 3509(b) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(15) Section 3704(c)(5) is amended by striking “commercial item” and inserting “commercial product”.
(16) Section 3901(b)(3) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(17) Section 4301(2) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(18) (A) Section 4505 is amended by striking “commercial items” in subsections (a) and (c) and inserting “commercial products or commercial services”.
“§ 4505. Payments for commercial products and commercial 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 inserting “commercial products or commercial services”.
(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 inserting “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
(B) by striking subparagraph (I) and inserting 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 inserting “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 “commercial items” and inserting “commercial products”.
(3) Section 2305 is amended—
(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 products or commercial services”.
(5) Section 2306a is amended—
(i) in paragraph (1)(B), by striking “a commercial item” and inserting “a commercial product or a commercial service”;
(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 inserting “commercial product or commercial services”;
(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 inserting “COMMERCIAL PRODUCT OR COMMERCIAL SERVICE”;
(II) by striking “commercial item” in subparagraph (A) after “applying the”;
(III) by striking “prior commercial item determination” in subparagraph (A) and inserting “prior commercial 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 previously determined to be a commercial item” in subparagraph (B) and inserting “of a product or service previously determined to be a commercial product or a commercial service”;
(VI) by striking “of a commercial item,” in subparagraph (B) and inserting “of a commercial product or a commercial service, as the case may be,”;
(VII) by striking “the commercial item determination” in subparagraph (B) and inserting “the commercial product or commercial service determination”; and
(VIII) by striking “commercial item” in subparagraph (C); and
(v) in paragraph (5), by striking “commercial items” and inserting “commercial products or commercial services”;
(B) in subsection (d)(2), by striking “commercial items” each place it appears and inserting “commercial products or commercial services”; and
(C) in subsection (h)—
(i) in paragraph (2), by striking “commercial items” and inserting “commercial products or commercial services”; and
(6) Section 2307(f) is amended—
(A) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products And Commercial Services”; and
(B) by striking “commercial items” in paragraphs (1) and (2) and inserting “commercial products and commercial services”.
(7) Section 2320(b) is amended—
(A) in paragraph (1), by striking “a commercial item, the item” and inserting “a commercial product, the product”; and
(B) in paragraph (9)(A), by striking “any noncommercial item or process” and inserting “any noncommercial product or process”.
(8) Section 2321(f) is amended—
(i) by striking “commercial items” and inserting “commercial products”; and
(ii) by striking “the item” both places it appears and inserting “commercial products”; and
(B) in paragraph (2)(A), in clauses (i) and (ii), by striking “commercial item” and inserting “commercial product”.
(9) Section 2324(l)(1)(A) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(10) Section 2335(b) is amended by striking “commercial items” and inserting “commercial products and commercial services”.
(d) Amendments To Chapter 140 Of Title 10, United States Code.—Chapter 140 of title 10, United States Code, is amended as follows:
(1) Section 2375 is amended—
(A) in subsection (a), by striking “commercial item” in paragraphs (1) and (2) and inserting “commercial product or commercial service”;
(B) in subsections (b) and (c)—
(ii) by striking “commercial items” each place it appears and inserting “commercial products and commercial services”; and
(C) in subsection (e)(3), by striking “commercial items” and inserting “commercial products and commercial services”.
(2) Section 2376(1) is amended—
(A) by striking “terms ‘commercial item’,” and inserting “terms ‘commercial product’, ‘commercial service’,”; and
(B) by striking “chapter 1 of title 41” and inserting “sections 103, 103a, 110, 105, and 102, respectively, of title 41”.
(3) Section 2377 is amended—
(i) in paragraph (2), by striking “commercial items or, to the extent that commercial items suitable to meet the 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 suitable to meet the agency’s needs are not available, nondevelopmental items other than commercial products”; and
(i) in paragraphs (1) and (2), by striking “commercial items or nondevelopmental items other than commercial items” and inserting “commercial services, commercial products, or nondevelopmental items other than commercial products”;
(ii) in paragraphs (3) and (4), by striking “commercial items or, to the extent that commercial items suitable to meet the 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 suitable to meet the agency’s needs are not available, nondevelopmental items other than commercial products”; and
(ii) in paragraph (4), by striking “items other than commercial items” and inserting “products other than commercial products or services other than commercial services”;
(i) in the first sentence, by striking “commercial items” and inserting “commercial products or commercial services”;
(ii) in paragraph (1), by striking “items” and inserting “products or services”; and
(iii) in paragraph (2), by striking “items” and inserting “products or services”; and
(E) in subsection (e)(1), by striking “commercial items” and inserting “commercial products and commercial services”.
(4) Section 2379 is amended—
(A) by striking “Commercial Items” in the headings of subsections (b) and (c) and inserting “Commercial Products”;
(B) in subsections (a)(1)(A), (b)(2), and (c)(1)(B), by striking “, as defined in section 103 of title 41”; and
(C) by striking “commercial item” and “commercial items” each place they appear and inserting “commercial product” and “commercial products”, respectively.
(5) Section 2380 is amended—
(A) in subsection (a), by striking “commercial item determinations” in paragraphs (1) and (2) and inserting “commercial product and commercial service determinations”; and
(B) in subsection (b) (as added by section 848 of the National Defense Authorization Act for Fiscal Year 2018)—
(i) by striking “Item” in the subsection heading;
(ii) by striking “an item” each place it appears and inserting “a product or service”;
(iii) by striking “item” after “using commercial” each place it appears;
(iv) by striking “prior commercial item determination” and inserting “prior commercial product or service determination”;
(v) by striking “such item” and inserting “such product or service”; and
(vi) by striking “the item” both places it appears and inserting “the product or service”.
(6) Section 2380a is amended—
(i) by striking “items and” and inserting “products and”; and
(ii) by striking “commercial items” and inserting “commercial products and commercial services, respectively,”; and
(B) in subsection (b), by striking “commercial items” and inserting “commercial services”.
(7) Section 2380B is amended by striking “commercial item” and inserting “commercial product”.
(8) AMENDMENTS TO HEADINGS, ETC.—
(A) The heading of such chapter is amended to read as follows:
“CHAPTER 140—PROCUREMENT OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES”.
(B) The heading of section 2375 is amended to read as follows:
“§ 2375. Relationship of other provisions of law to procurement of commercial products and commercial services”.
(C) The heading of section 2377 is amended to read as follows:
“§ 2377. Preference for commercial products and commercial services”.
(D) The heading of section 2379 is amended to read as follows:
“§ 2379. Procurement of a major weapon system as a commercial product: requirement for prior determination by Secretary of Defense and notification to Congress”.
(E) The heading of section 2380 is amended to read as follows:
“§ 2380. Commercial product and commercial service determinations by Department of Defense”.
(F) The heading of section 2380a is amended to read as follows:
“§ 2380a. Treatment of certain products and services as commercial products and commercial services”.
(G) Section 2380B is redesignated as section 2380b and the heading of that section is amended to read as follows:
“§ 2380b. Treatment of commingled items purchased by contractors as commercial products”.
(H) The table of sections at the beginning of such chapter is amended to read as follows:
“2375. Relationship of other provisions of law to procurement of commercial products and commercial services.
“2376. Definitions.
“2377. Preference for commercial products and commercial services.
“2379. Procurement of a major weapon system as a commercial product: requirement for prior determination by Secretary of Defense and notification to Congress.
“2380. Commercial product and commercial service determinations by Department of Defense.
“2380a. Treatment of certain products and services as commercial products and commercial services.
“2380b. Treatment of commingled items purchased by contractors as commercial 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 products”.
(3) Section 2393(d) is amended by striking “commercial items (as defined in section 103 of title 41)” and inserting “commercial products or commercial services (as defined in sections 103 and 103a, respectively, of title 41)”.
(4) Section 2402(d) is amended—
(A) in paragraph (1), by striking “commercial items” both places it appears and inserting “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 service’ have the meanings given those terms in sections 103 and 103a, respectively, of title 41.”.
(5) Section 2408(a)(4)(B) is amended by striking “commercial items (as defined in section 103 of title 41)” and inserting “commercial products or commercial services (as defined in sections 103 and 103a, respectively, of title 41)”.
(6) Section 2410b(c) is amended by striking “commercial items” and inserting “commercial products”.
(7) Section 2410g(d)(1) is amended by striking “Commercial items (as defined in section 103 of title 41)” and inserting “Commercial products or commercial services (as defined in sections 103 and 103a, respectively, of title 41)”.
(8) Section 2447a is amended—
(A) in subsection (a)(2), by striking “commercial items and technologies” and inserting “commercial products and technologies”; and
(B) in subsection (c), by inserting before the period at the end the following: “and the term ‘commercial product’ has the meaning given that term in section 103 of title 41”.
(9) Section 2451(d) is amended by striking “commercial items” and inserting “commercial products (as defined in section 103 of title 41)”.
(10) Section 2464 is amended—
(i) in paragraph (3), by striking “commercial items” and inserting “commercial products or commercial services”; and
(ii) in paragraph (5), by striking “The commercial items covered by paragraph (3) are commercial items” and inserting “The commercial products or commercial services covered by paragraph (3) are commercial products (as defined in section 103 of title 41) or commercial services (as defined in section 103a of such title)”; and
(ii) by striking “commercial item” and inserting “commercial product or commercial service”.
(11) Section 2484(f) is amended—
(A) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products”; and
(B) by striking “commercial item” and inserting “commercial product”.
(12) The items relating to chapter 140 in the tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, are amended to read as follows:
“140. Procurement of Commercial Products and Commercial Services 2377”.
(f) Amendments To Provisions Of National Defense Authorization Acts.—
(1) Section 806(b) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 10 U.S.C. 2302 note) is amended by striking “commercial items (as defined in section 103 of title 41, United States Code)” and inserting “commercial products or commercial services (as defined in sections 103 and 103a, respectively, of title 41, United States Code)”.
(2) Section 821(e) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106–398; 10 U.S.C. 2302 note) is amended—
(3) Section 821(b) of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2304 note) is amended—
(A) in paragraph (1), by striking “a commercial item” and inserting “a commercial product or a commercial service”;
(B) in paragraph (2), by striking “commercial item” and inserting “commercial product ”; and
“(3) The term ‘commercial service’ has the meaning provided by section 103a of title 41, United States Code.”.
(4) Section 817(d) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 10 U.S.C. 2306a note) is amended—
(A) in paragraph (1), by striking “commercial item exceptions” and inserting “commercial product-commercial service exceptions”; and
(B) in paragraph (2), by striking “commercial item exception” and inserting “commercial product-commercial service exception”;
(5) Section 852(b)(2)(A)(ii) of the National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 10 U.S.C. 2324 note) is amended by striking “a commercial item, as defined in section 103 of title 41” and inserting “a commercial product or a commercial service, as defined in sections 103 and 103a, respectively, of title 41”.
(6) Section 805 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2330 note) is amended—
(A) in subsection (b), by striking “commercial items” in paragraphs (1) and (2)(A) and inserting “commercial services”; and
(i) by striking “ITEM” in the headings for paragraphs (1) and (2) and inserting “SERVICES”;
(ii) in the matter in paragraph (1) preceding subparagraph (A), by striking “commercial item” and inserting “commercial service”;
(iii) in paragraph (1)(A), by striking “a commercial item, as described in section 103(5) of title 41” and inserting “a service, as described in section 103a(1) of title 41”;
(iv) in paragraph (1)(C)(i), by striking “section 103(6) of title 41” and inserting “section 103a(2) of title 41”; and
(v) in paragraph (2), by striking “item” and inserting “service”.
(7) Section 849(d) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 2377 note) is amended—
(A) by striking “commercial items” in paragraph (1) and inserting “commercial products”;
(B) by striking “commercial item” in paragraph (3)(B)(i) and inserting “commercial product”; and
“(5) DEFINITION.—In this subsection, the term ‘commercial product’ has the meaning given that term in section 103 of title 41.”.
(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 striking “commercial items or services” and inserting “a commercial product or a commercial service, as defined in sections 103 and 103a, respectively, of title 41,”.
(9) Section 879 of the National Defense Authorization 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 “COMMERCIAL PRODUCTS”;
(B) in subsection (a), by striking “commercial items” and inserting “commercial products”;
(C) in subsection (c)(3)—
(ii) by striking “commercial items” and inserting “commercial products or commercial services”; and
(D) in subsection (e)(2), by striking “item” in subparagraphs (A) and (B) and inserting “products”.
(10) Section 880 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 41 U.S.C. 3301 note) is amended by striking “commercial items” in subsection (a)(1) and inserting “commercial products”.
(g) Conforming Amendments To Other Statutes.—
(1) Section 604(g) of the American Recovery and Reinvestment Act of 2009 (6 U.S.C. 453b(g)) is amended—
(A) by striking “Commercial Items” in the subsection heading and inserting “Commercial Products”;
(B) by striking “procurement of commercial” in the first sentence and all that follows through “items listed” and inserting “procurement of commercial products notwithstanding section 1906 of title 41, United States Code, with the exception of commercial products listed”; and
(C) in the second sentence—
(i) by inserting “product” after “commercial”; and
(ii) by striking “in the” and all that follows and inserting “in section 103 of title 41, United States Code.”.
(2) Section 142 of the Higher Education Act of 1965 (20 U.S.C. 1018a) is amended—
(ii) by striking “that commercial items” and inserting “that commercial products or commercial services”;
(iii) by striking “special rules for commercial items” and inserting “special rules for commercial products and commercial services”;
(iv) by striking “without regard to—” and all that follows through “dollar limitation” and inserting “without regard to any dollar limitation”;
(v) by striking “; and” and inserting a period; and
(vi) by striking paragraph (2);
(i) by striking “Items” in the subsection heading and inserting “Products And Services”;
(ii) by striking “ITEMS” in the heading of paragraph (2) and inserting “PRODUCTS AND SERVICES”; and
(iii) by striking “a commercial item” in paragraph (2) and inserting “a commercial product or a commercial service”;
(i) by striking “Items” in the subsection heading and inserting “Services”; and
(ii) by striking “commercial items” in paragraph (1) and inserting “commercial services”; and
(D) in subsection (l)—
(i) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively;
(ii) by striking paragraph (1) and inserting the following new paragraphs:
“(1) COMMERCIAL PRODUCT.—The term ‘commercial product’ has the meaning given the term in section 103 of title 41, United States Code.
“(2) COMMERCIAL SERVICE.—The term ‘commercial service’ has the meaning given the term in section 103a of title 41, United States Code.”;
(iii) in paragraph (3), as so redesignated, by striking “in section” and all that follows and inserting “in section 152 of title 41, United States Code.”;
(iv) in paragraph (5), as so redesignated—
(I) by striking “COMMERCIAL ITEMS” in the paragraph heading and inserting “COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES”;
(II) by striking “commercial items” and inserting “commercial products and commercial services”; and
(III) by striking “pursuant to” and all that follows and inserting “pursuant to sections 1901 and 3305(a) of title 41, United States Code.”; and
(v) in paragraph (6), as so redesignated, by striking “pursuant to” and all that follows and inserting “pursuant to sections 1901(a)(1) and 3305(a)(1) of title 41, United States Code.”.
(3) Section 3901(a)(4)(A)(ii)(II) of title 31, United States Code, is amended by striking “commercial item” and inserting “commercial product”.
(4) Section 2455(c)(1) of the Federal Acquisition Streamlining Act of 1994 (31 U.S.C. 6101 note) is amended by striking “commercial items” and inserting “commercial products”.
(5) Section 508(f) of the Federal Water Pollution Control Act (33 U.S.C. 1368(f)) is amended—
(A) in paragraph (1), by striking “commercial items” and inserting “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 service’ have the meanings given those terms in sections 103 and 103a, respectively, of title 41, United States Code.”.
(6) Section 3707 of title 40, United States Code, is amended by striking “a commercial item (as defined in section 103 of title 41)” and inserting “a commercial product (as defined in section 103 of title 41) or a commercial service (as defined in section 103a of title 41)”.
(7) Subtitle III of title 40, United States Code, is amended—
(A) in section 11101(1), by striking “COMMERCIAL ITEM.—The term ‘commercial item’ has” and inserting “COMMERCIAL PRODUCT.—The term ‘commercial product’ has”; and
(B) in section 11314(a)(3), by striking “items” each place it appears and inserting “products”.
(8) Section 8301(g) of the Federal Acquisition Streamlining Act of 1994 (42 U.S.C. 7606 note) is amended by striking “commercial items” and inserting “commercial products or commercial services”.
(9) Section 40118(f) of title 49, United States Code, is amended—
(A) in paragraph (1), by striking “commercial items” and inserting “commercial products”; and
(B) in paragraph (2), by striking “commercial item” and inserting “commercial product”.
(10) Chapter 501 of title 51, United States Code, is amended—
(A) in section 50113(c)—
(i) by striking “Commercial Item” in the subsection heading and inserting “Commercial Product Or Commercial Service”; and
(ii) by striking “commercial item” in the second sentence and inserting “commercial product or commercial service”; and
(B) in section 50115(b)—
(C) in section 50132(a)—
(i) by striking “Commercial Item” in the subsection heading and inserting “Commercial Service”; and
(ii) by striking “commercial item” in the second sentence and inserting “commercial service”.
(h) Effective Date And Savings Provision.—The amendments made by subsections (a) through (g) shall take effect on January 1, 2020. Any provision of law that on the day before such effective date is on a list of provisions of law included in the Federal Acquisition Regulation pursuant to section 1907 of title 41, United States Code, shall be deemed as of that effective date to be on a list of provisions of law included in the Federal Acquisition Regulation pursuant to section 1906 of such title.
(i) Implementation Plan Required.—Not later than April 1, 2019, the Under Secretary of Defense for Acquisition and Sustainment, in coordination with members of the Defense Business Board, the Defense Science Board, and the Defense Innovation Board as appropriate, shall submit to the Committees on Armed Services of the Senate and the House of Representatives an implementation plan that contains the following elements:
(1) An implementation timeline and schedule, to include substantive, technical, and conforming changes to the law that the Under Secretary deems appropriate and necessary, to include revising definitions or categories of items, products, and services.
(2) A review of recommendations by the independent panel created under section 809 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 889) pertaining to commercial items.
(3) A review of commercial item provisions from the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92), the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91), and other relevant legislation.
(4) An analysis of the extent to which the Department of Defense should treat commercial service contracts and commercial products in a similar manner.
(5) Such other matters with respect to commercial item procurement as the Under Secretary considers appropriate.
Revision of definition of commercial item for purposes of Federal acquisition statutes (sec. 836)
The House bill contained a provision (sec. 831) that would clarify the definition of commercial items. Specifically, it would clarify commercial items as commercial products or commercial services.
The Senate amendment contained a similar provision (sec. 851) that would direct the Assistant Secretary of Defense for Acquisition to conduct a review of commercial item procurement reform, including recommendations by the independent panel created by Section 809 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92) and provisions from recent National Defense Authorization Acts, and an analysis of the treatment of commercial services contracts as compared to commercial products.
The Senate recedes with an amendment that would set the effective date of the new definitions to January 1, 2020 with a detailed implementation plan due to the congressional defense committees on April 1, 2019.
Section 831--Revision of Definition of Commercial Item for Purposes of Federal Acquisition Statutes
This section would clarify the definition of commercial items. Specifically, it would clarify commercial items as commercial products or commercial services.
The committee notes the current definition of commercial items throughout the United States Code is inconsistent, with 40 disparate definitions of commercial items. Additionally, commercial item definitions do not appropriately take into account the differences between products and services. The separation of the definition of commercial items into commercial products and commercial services would simplify and streamline procurement. Consistency in application of definitions would assist the acquisition workforce as well as businesses seeking to participate in the defense sector.