Government Contracts Legal Forum

Category Archives: Commercial Items

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Commercial Items: New Requirement for Higher-Level Approval of Commercial Services

Posted in Commercial Items
On Monday, DoD issued a final rule in a continuing effort to reduce the potentially inappropriate use of commercial item contracts. DFARS: Commercial Determination Approval, 77 Fed. Reg. 14,480, (Mar. 12, 2012) (to be codified at 48 C.F.R. pt. 212). The rule, most notably, modifies DFARS subpart 212.102 to require approval at the level above the contracting … Continue Reading

New Commercial Item Exceptions to Subcontractor Responsibility Clause

Posted in Commercial Items
While the administrative tools of suspension and debarment allow the government to prohibit entities from receiving contracts or grants directly, the procurement regulations also contain restrictions on prime contractors’ ability to subcontract with suspended or debarred entities. Historically, these restrictions, found at section 52.209-6 of the Federal Acquisition Regulation, have: Prohibited government contractors from entering … Continue Reading

Subcontractors Beware: Your Prime Contractor Might Not Have a Bond (Part II)

Posted in Commercial Items, Construction
My last post warned that subcontractors on Federal construction projects should be alert to whether the Government designated the prime contract as a “commercial items’ contract, rather than a construction contract.  Agencies often assume that in a “commercial items” contract — even if the contract is for purchase of construction-related services — the prime contractor is … Continue Reading

Subcontractors Beware: Your Prime Contractor Might Not Have a Bond

Posted in Commercial Items, Construction
Subcontractors seeking a piece of the Federal construction spending (pdf) boom beware: you can find yourself with no easy options to collect from a nonpaying prime, if the prime contract — the one you thought was a construction contract — is actually a “commercial items” contract, and the prime contractor did not get a payment bond. … Continue Reading