Commercially available off-the-shelf (COTS) items
COTS items are generally subject to the same policies as commercial products, except where specific exemptions are listed in FAR 12.503, 12.504, and 12.505.
Overview
FAR 12.103 clarifies the treatment of commercially available off-the-shelf (COTS) items in federal acquisitions. COTS items are defined in FAR 2.101, and, unless specifically stated otherwise, all policies applicable to commercial products also apply to COTS items. The section also points to FAR 12.505, which lists laws that do not apply to COTS items, in addition to those listed in 12.503 and 12.504. This ensures that contractors and contracting officers understand the regulatory framework for acquiring COTS items and know where to find exceptions or exemptions from certain laws.
Key Rules
- Definition Reference
- COTS items are defined in FAR 2.101 and must meet that definition for these rules to apply.
- Policy Application
- All policies for commercial products generally apply to COTS items unless an exception is specifically stated.
- Exemptions and Non-Applicability
- FAR 12.505, 12.503, and 12.504 list laws that do not apply to COTS items, providing important compliance relief in certain areas.
Responsibilities
- Contracting Officers: Must ensure COTS items meet the definition in FAR 2.101 and apply the appropriate commercial product policies, while also checking for any exemptions in 12.503, 12.504, and 12.505.
- Contractors: Should confirm their products qualify as COTS and be aware of both applicable commercial product policies and any specific exemptions.
- Agencies: Oversee compliance with the correct application of policies and exemptions for COTS acquisitions.
Practical Implications
- This section streamlines acquisition by aligning COTS treatment with commercial products, reducing unique government requirements unless specifically exempted.
- Contractors benefit from simplified compliance, but must be diligent in confirming both applicability and exemptions.
- Common pitfalls include misclassifying items as COTS or overlooking specific exemptions listed in referenced sections.