Title 10Armed ForcesRelease 119-73

§3456 Commercial product and commercial service determinations by Department of Defense

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart C— - Contracting Methods and Contract Types › Chapter CHAPTER 247— - PROCUREMENT OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES › § 3456

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Defense must create and run a central team with the skills and resources to help military departments and Defense Agencies decide if things are commercial, do market research, and check if prices are fair for Department of Defense purchases. The Secretary must also help each military department secretary and Defense Agency head carry out market research under section 3453 and use the program manager’s results under section 3453(d)(1)(B) when judging price reasonableness. A DoD contracting officer can ask experts like the Directors of the Defense Contract Management Agency or the Defense Contract Audit Agency, and consider public or private views, when deciding if an offer is commercial. Within 30 days after a contract award, the officer must write a memo explaining the decision and the reasons, and must provide that memo to the contractor or subcontractor if they ask. A contract or subcontract won using commercial procedures under FAR part 12 counts as a prior commercial finding for that product or service, including minor changes, unless a DoD contracting officer did not approve it or the senior procurement executive named under section 1702(c) says in writing commercial procedures are no longer appropriate. DoD funds cannot be used to buy that product or service under FAR part 15 if it was previously bought under part 12, except if the head of contracting activity finds in writing under section 3703(d)(2) that part 12 was used improperly, or the senior procurement executive under section 1702(c) says in writing part 12 is no longer appropriate.

Full Legal Text

Title 10, §3456

Armed Forces — Source: USLM XML via OLRC

(a)The Secretary of Defense shall—
(1)establish and maintain a centralized capability with necessary expertise and resources to provide assistance to the military departments and Defense Agencies in making commercial product and commercial service determinations, conducting market research, and performing analysis of price reasonableness for the purposes of procurements by the Department of Defense; and
(2)assist each Secretary of a military department and each head of a Defense Agency with performing market research in accordance with the requirements of section 3453 of this title relating to market research and the determination regarding the non-availability of commercial products or commercial services, and other analysis, used to determine the reasonableness of price for the purposes of procurements by the Department of Defense.
(b)(1)In making a determination whether a particular product or service offered by a contractor meets the definition of a commercial product or commercial service, a contracting officer of the Department of Defense may—
(A)request support from the Director of the Defense Contract Management Agency, the Director of the Defense Contract Audit Agency, or other appropriate experts in the Department to make a determination whether a product or service is a commercial product or commercial service; and
(B)consider the views of appropriate public and private sector entities.
(2)Within 30 days after a contract award, the contracting officer shall, consistent with the policies and regulations of the Department, submit a written memorandum summarizing the determination referred to in paragraph (1), including a detailed justification why the product or service was determined to be commercial or noncommercial. The contracting officer shall consider the results in the memorandum of the program manager required under section 3453(d)(1)(B) of this title when developing the memorandum required under this paragraph. Upon the request of the contractor or subcontractor offering the product or service for which such determination is summarized in such memorandum, the contracting officer shall provide to such contractor or subcontractor a copy of such memorandum.
(c)(1)A contract or subcontract for a product (including a product without a part number or a product with a prior part number that has the same functionality as the product had with the prior part number) or service acquired using commercial acquisition procedures under part 12 of the Federal Acquisition Regulation shall serve as a prior commercial product or commercial service determination with respect to such product or service for purposes of this chapter, including when subject to minor modifications, unless—
(A)the prior determination was not issued or approved by a contracting officer of the Department of Defense; or
(B)the senior procurement executive of the military department or the Department of Defense as designated for purposes of section 1702(c) of title 41 determines in writing that it is no longer appropriate to acquire the product or service using commercial acquisition procedures.
(2)(A)Except as provided under subparagraph (B), funds appropriated or otherwise made available to the Department of Defense may not be used for the procurement under part 15 of the Federal Acquisition Regulation of a product or service that was previously acquired under a contract using commercial acquisition procedures under part 12 of the Federal Acquisition Regulation.
(B)The limitation under subparagraph (A) does not apply to the procurement of a product or service that was previously acquired using commercial acquisition procedures under part 12 of the Federal Acquisition Regulation following—
(i)a written determination by the head of contracting activity pursuant to section 3703(d)(2) of this title that the use of such procedures was improper; or
(ii)a written determination by the senior procurement executive of the military department or the Department of Defense as designated for purposes of section 1702(c) of title 41 that it is no longer appropriate to acquire the product or service using such procedures.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2025—Subsec. (a)(2). Pub. L. 119–60, § 1822(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “provide to officials of the Department of Defense access to previous Department of Defense commercial product and commercial service determinations, market research, and analysis used to determine the reasonableness of price for the purposes of procurements by the Department of Defense.” Subsec. (b)(2). Pub. L. 119–60, § 1822(b)(2), inserted “The contracting officer shall consider the results in the memorandum of the program manager required under section 3453(d)(1)(B) of this title when developing the memorandum required under this paragraph.” after “commercial or noncommercial.” 2024—Subsec. (c)(1). Pub. L. 118–159 added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “A contract for a product or service acquired using commercial acquisition procedures under part 12 of the Federal Acquisition Regulation shall serve as a prior commercial product or service determination with respect to such product or service for purposes of this chapter unless the senior procurement executive of the military department or the Department of Defense as designated for purposes of section 1702(c) of title 41 determines in writing that it is no longer appropriate to acquire the product or service using commercial acquisition procedures.” 2023—Subsec. (b)(2). Pub. L. 118–31 substituted “why the product or service was determined to be commercial or noncommercial” for “for such determination” and inserted at end “Upon the request of the contractor or subcontractor offering the product or service for which such determination is summarized in such memorandum, the contracting officer shall provide to such contractor or subcontractor a copy of such memorandum.” 2021—Pub. L. 116–283, § 1821(a)(2), renumbered section 2380 of this title as this section. Subsec. (b). Pub. L. 116–283, § 816(2), added subsec. (b). Former subsec. (b) redesignated (c). Subsec. (b)(2)(B)(i). Pub. L. 116–283, § 1831(j)(5), which directed amendment of subsec. (b)(2)(B)(i) of section 2380 of this title (now subsec. (c)(2)(B)(i) of this section) by substituting “section 3703(d)(2)” for “section 2306a(b)(4)(B)”, was repealed by Pub. L. 117–81, § 1701(b)(10)(I)(ii). Identical amendment was made to subsec. (c)(2)(B)(i) of this section by Pub. L. 116–283, § 1821(b)(5), see below. Subsec. (c). Pub. L. 116–283, § 816(1), redesignated subsec. (b) as (c). Subsec. (c)(2)(B)(i). Pub. L. 116–283, § 1821(b)(5), as amended by Pub. L. 117–81, § 1701(b)(9), substituted “section 3703(d)(2)” for “section 2306a(b)(4)(B)”. 2018—Pub. L. 115–232, § 836(d)(8)(E), substituted “Commercial product and commercial service” for “Commercial item” in section catchline. Subsec. (a). Pub. L. 115–232, § 836(d)(5)(A), substituted “commercial product and commercial service determinations” for “commercial item determinations” in pars. (1) and (2). Subsec. (b). Pub. L. 115–232, § 836(d)(5)(B)(i)–(iii), in heading, struck out “Item” after “Commercial” and, in text, substituted “a product or service” for “an item” and struck out “item” after “using commercial” wherever appearing. Subsec. (b)(1). Pub. L. 115–232, § 836(d)(5)(B)(iv)–(vi) substituted “prior commercial product or service determination” for “prior commercial item determination”, “such product or service” for “such item”, and “the product or service” for “the item”. Subsec. (b)(2)(B)(ii). Pub. L. 115–232, § 836(d)(5)(B)(vi), substituted “the product or service” for “the item”. 2017—Pub. L. 115–91 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). 2016—Pars. (1), (2). Pub. L. 114–328 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows: “(1) establish and maintain a centralized capability with necessary expertise and resources to oversee the making of commercial item determinations for the purposes of procurements by the Department of Defense; and “(2) provide public access to Department of Defense commercial item determinations for the purposes of procurements by the Department of Defense.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below. Amendment by section 1821(a)(2), (b)(5) and 1831(j)(5) of Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a

Savings Provision

, see section 836(h) of Pub. L. 115–232, set out as an

Effective Date

of 2018 Amendment;

Savings Provision

note under section 453b of Title 6, Domestic Security.

Regulations

Pub. L. 114–92, div. A, title VIII, § 851(d), Nov. 25, 2015, 129 Stat. 917, provided that: “Not later than 180 days after the date of the enactment of this Act [Nov. 25, 2015], the Defense Federal Acquisition Regulation Supplement shall be updated to reflect the requirements of this section [enacting this section, amending section 2306a of this title, and enacting provisions set out as notes under section 2306a of this title] and the

Amendments

made by this section.”

Construction

Pub. L. 114–92, div. A, title VIII, § 851(e), Nov. 25, 2015, 129 Stat. 917, provided that: “Nothing in this section [enacting this section, amending section 2306a of this title, and enacting provisions set out as notes under section 2306a of this title] or the

Amendments

made by this section shall be construed to preclude the contracting officer for the procurement of a commercial item from requiring the contractor to supply information that is sufficient to determine the reasonableness of price, regardless of whether or not the contractor was required to provide such information in connection with any earlier procurement.” Definition of Commercial Item Pub. L. 114–92, div. A, title VIII, § 851(c), Nov. 25, 2015, 129 Stat. 917, provided that: “Nothing in this section [enacting section 2380 of this title, amending section 2306a of this title, and enacting provisions set out as notes under section 2306a of this title] or the

Amendments

made by this section shall affect the meaning of the term ‘commercial item’ under subsection (a)(5) of section 2464 of title 10, United States Code, or any requirement under subsection (a)(3) or subsection (c) of such section.” [Pub. L. 115–232 amended subsecs. (a)(3), (5) and (c) of section 2464 of title 10 by substituting references to “commercial products or commercial services” for references to “commercial items”. See 2018 Amendment notes set out under that section.]

Reference

Citations & Metadata

Citation

10 U.S.C. § 3456

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73