Q.  Though we are new to the federal government market, we have sold extensively to local and foreign government agencies.  Can we take advantage of “commercial item” pricing and contracting?

A.  For the benefit of our readers, use of commercial acquisition methods contained in FAR Part 12 and commercial item pricing tools available in FAR part 15 provides considerable advantages over more traditional contracting and pricing schemes.  A recent article by Richard Wall and Brian Cohen of Ernst and Young in the January 28, 2003 issue of Federal Contracts addressed this issue in great detail. They concluded that under the current definition and interpretations of the FAR, products or services need to be provided or offered to the “general public” and that state, local and foreign government do not qualify.  Ironically, prior definitions of the general public included offerings by state, local and foreign government – it is ironic because the federal government has expressed a desire to expand the use of commercial item pricing and contracting.

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