Applicability of certain laws to contracts for the acquisition of COTS items
FAR 12.505 exempts COTS item contracts from several statutory requirements, streamlining procurement and reducing compliance burdens for both contractors and agencies.
Overview
FAR 12.505 clarifies which federal laws do not apply to contracts for the acquisition of Commercially Available Off-the-Shelf (COTS) items. COTS items, as a subset of commercial products, benefit from streamlined procurement by exempting them from certain statutory requirements that typically apply to federal contracts. This section references additional exemptions beyond those listed in FAR 12.503 and 12.504, specifically targeting domestic content requirements, recovered material certifications, and certain compliance plan mandates.
Key Rules
- Exemption from Domestic Content Tests
- The Buy American Act's domestic content requirements for supplies (41 U.S.C. 8302(a)(1)) and construction materials (41 U.S.C. 8303(a)(2)) do not apply to COTS acquisitions, with specific exceptions noted in FAR 25.101(a)(2)(ii) and 25.201(b)(2)(ii).
- Recovered Material Certification Not Required
- The requirement to certify and estimate the percentage of recovered material (42 U.S.C. 6962(c)(3)(A)) is not applicable to COTS contracts.
- Human Trafficking Compliance Plan Exemption
- COTS contracts are exempt from the compliance plan and certification requirements related to ending trafficking in government contracting (section 1703 of Pub. L. 112-239).
Responsibilities
- Contracting Officers: Must ensure that COTS contracts do not include the inapplicable clauses and are aware of the specific exemptions.
- Contractors: Should understand which statutory requirements do not apply to their COTS contracts and avoid unnecessary compliance efforts.
- Agencies: Should oversee that procurement processes for COTS items reflect these exemptions and do not impose additional, non-required burdens.
Practical Implications
- This section exists to reduce administrative burden and streamline the acquisition of COTS items by removing certain statutory requirements.
- It impacts daily contracting by clarifying which laws and clauses should not be included in COTS contracts, preventing unnecessary compliance work.
- Common pitfalls include mistakenly applying inapplicable clauses or failing to recognize the specific exceptions noted in the referenced FAR parts.