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DOD/DARC RIN: 0750-AK66 Publication ID: Fall 2020 
Title: Treatment of Certain Items as Commercial Items (DFARS Case 2019-D029)  

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement the requirements of sections 877 and 878 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017 and further implement section 848 of the NDAA for FY 2018. The rule requires that items valued at less than $10,000 and purchased by a contractor for use in the performance of multiple contracts with DoD and other parties and are not identifiable to any particular contract be treated as a commercial item. In addition, the rule requires that services provided by a business unit that is a nontraditional defense contractor (as that term is defined in 10 U.S.C. 2302(9)) be treated as commercial items, to the extent that such services use the same pool of employees as used for commercial customers and are priced using methodology similar to methodology used for commercial pricing. Section 848 addresses that a contract for an item using Federal Acquisition Regulation part 12 procedures shall serve as a prior commercial item determination.

Agency: Department of Defense(DOD)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Not subject to, not significant 
CFR Citation: 48 CFR 212    48 CFR 244    48 CFR 252   
Legal Authority: 41 U.S.C. 1303    Pub. L. 114–328, sec. 877    Pub. L. 114–328, sec. 878    Pub. L. 115-91, sec. 848   
Legal Deadline:
Action Source Description Date
Final  Statutory  90 days after enactment (Pub. L. 114-328).  04/23/2017 
Action Date FR Cite
NPRM  11/27/2019  84 FR 65322   
NPRM Comment Period End  01/27/2020 
Final Action  11/00/2020 
Final Action Effective  11/00/2020 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Jennifer D. Johnson
Office of the Under Secretary of Defense for Acquisition and Sustainment
Department of Defense
Defense Pricing and Contracting, Defense Acquisition Regulations System, Room 3B941, 3060 Pentagon,
Washington, DC 20301-3060
Phone:571 372-6100