COTS (Commercial Off The Shelf)

What is COTS (Commercial Off The Shelf)?

COTS, or Commercial Off The Shelf, refers to products and services that are readily available on the commercial market and can be purchased and used by the government with little to no modification. Utilizing COTS items can significantly streamline the government's acquisition process, allowing agencies to leverage existing commercial solutions. This approach contrasts with custom-developed items, which can be more expensive and time-consuming to procure.

Definition

COTS items are defined in FAR Part 2.101 as commercial items that are sold or leased to the general public, offered without modification, and require no unique government-imposed design or performance requirements. These items are already available in the marketplace, which distinguishes them from items specifically developed or modified for government use. The use of COTS items is encouraged under the Clinger-Cohen Act (CCA) and is a key principle of modern acquisition reform, promoting efficiency and cost-effectiveness in government procurement. COTS items are preferred because they reduce development time and cost, leveraging the investments made by the commercial sector.

Key Points

• Simplified Acquisition: Purchasing COTS items often involves simplified acquisition procedures, reducing administrative burdens for both the government and contractors.
• Reduced Costs: Utilizing existing commercial products lowers development and production costs, compared to creating custom solutions.
• Faster Deployment: COTS items are readily available, enabling quicker deployment and implementation of solutions.
• Market Driven Innovation: Government benefits from advancements and innovations driven by the commercial market.

Practical Examples

1. Software Licensing: A government agency needs office productivity software. Instead of developing a custom suite, it purchases a COTS software license from a major vendor.
2. Hardware Procurement: The Department of Defense requires new laptops for its personnel. It purchases commercially available laptops that meet the agency's security specifications, without requesting unique modifications.
3. Cloud Services: An agency needs cloud storage solutions. Rather than building its own data center, it contracts with a commercial cloud service provider offering COTS cloud computing resources.