Title 41Public ContractsRelease 119-73not60

§103 Commercial Product

Title 41 › Subtitle Subtitle I— Federal Procurement Policy › Chapter 1— DEFINITIONS › Subchapter I— SUBTITLE DEFINITIONS › § 103

Last updated Apr 5, 2026|Official source

Summary

Defines "commercial product" to mean six kinds of items. First, anything except land that people or private groups normally use for non-government purposes and that has been sold, leased, licensed, or offered to the public. Second, a new version of such a product that grew from commercial technology and isn’t yet on the market but will be available in time to meet a federal delivery schedule. Third, a product that would qualify except for common market options or small changes made to meet government needs. Fourth, a normal package of such products sold together. Fifth, the same products still count if they move among a contractor’s divisions. Sixth, a nondevelopmental item also counts if the buying agency finds, under the Federal Acquisition Regulation, that it was developed only with private funds and has been sold in substantial quantities, competitively, to multiple State and local governments or to 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 41Public Contracts

Last Updated

Apr 5, 2026

Release point: 119-73not60