PRIA Logo™
Title 41, Public ContractsRelease 119-102

§103 Commercial Product

Title 41 › Subtitle I — Federal Procurement Policy › CHAPTER 1 — DEFINITIONS › SUBCHAPTER I — SUBTITLE DEFINITIONS › § 103

Last updated Aug 21, 2026|Official source

Summary

Defines what counts as a "commercial product" for purchases under this subtitle. A commercial product can be: (1) a non-land item normally used by the public or by non-government groups for non-government purposes that has been sold, leased, licensed, or offered to the public; (2) an improved version of such an item that isn’t yet on the market but will be available in time to meet a federal delivery schedule; (3) an item that would qualify but for normal commercial changes or small tweaks to meet government needs; (4) a usual combination of such items sold together; (5) any of the above even if transferred among a contractor’s divisions or affiliates; or (6) a nondevelopmental item that the agency finds, under the Federal Acquisition Regulation, was developed only with private money and sold in substantial quantities on a competitive basis to multiple State/local or multiple foreign governments.

Full Legal Text

Title 41, §103

Public Contracts, Source: USLM XML via OLRC

In this subtitle, the term “commercial product” means any of the following:
(1)A product, other than real property, that—
(A)is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes; and
(B)has been sold, leased, or licensed, or offered for sale, lease, or license, to the general public.
(2)A product that—
(A)evolved from a product described in paragraph (1) through advances in technology or performance; and
(B)is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Federal Government solicitation.
(3)A product that would satisfy the criteria in paragraph (1) or (2) were it not for—
(A)modifications of a type customarily available in the commercial marketplace; or
(B)minor modifications made to meet Federal Government requirements.
(4)Any combination of products meeting the requirements of paragraph (1), (2), or (3) that are of a type customarily combined and sold in combination to the general public.
(5)A product, or combination of products, referred to in paragraphs (1) through (4), even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor.
(6)A nondevelopmental item if the procuring agency determines, in accordance with conditions in the Federal Acquisition Regulation, that—
(A)the product was developed exclusively at private expense; and
(B)has been sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 103, Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3679; Pub. L. 115–91, div. A, title VIII, § 847(a), Dec. 12, 2017, 131 Stat. 1487, defined term “commercial item”, prior to repeal by Pub. L. 115–232, div. A, title VIII, § 836(a)(1), Aug. 13, 2018, 132 Stat. 1859, effective Jan. 1, 2020. See

Effective Date

note below.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective, and repeal of former section 103 effective, on 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.

Reference

Citations & Metadata

Citation

41 U.S.C. § 103

Title 41, Public Contracts

Last Updated

Aug 21, 2026

Release point: 119-102