Term -Commercial Item

    (1) Any item, other than real property,
that is of a type customarily used by the general public or by
non-governmental entities for purposes other than governmental
purposes, and:
        (i) Has
been sold, leased, or licensed to the general public; or
        (ii) Has been offered for sale, lease, or license to the general public;
    (2) Any item that evolved from an item
described in paragraph (1) of this definition through advances in
technology or performance and that 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
Government solicitation;
    (3) Any item that would satisfy a
criterion expressed in paragraphs (1) or (2) of this definition, but
Modifications of a type customarily available in the commercial
marketplace; or
Minor modifications of a type not customarily available in the
commercial marketplace made to meet Federal Government requirements.
Minor modifications means modifications that do not significantly alter
the nongovernmental function or essential physical characteristics of
an item or component, or change the purpose of a process. Factors to be
considered in determining whether a modification is minor include the
value and size of the modification and the comparative value and size
of the final product. Dollar values and percentages may be used as
guideposts, but are not conclusive evidence that a modification is
    (4) Any combination of items meeting the
requirements of paragraphs (1), (2), (3), or (5) of this definition
that are of a type customarily combined and sold in combination to the
general public;
    (5) Installation services, maintenance
services, repair services, training services, and other services if:
        (i) Such
services are procured for support of an item referred to in paragraph
(1), (2), (3), or (4) of this definition, regardless of whether such
services are provided by the same source or at the same time as the
item; and
        (ii) The
source of such services provides similar services contemporaneously to
the general public under terms and conditions similar to those offered
to the Federal Government;
    (6) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace
based on established catalog or market prices for specific tasks
performed or specific outcomes to be achieved and under standard
commercial terms and conditions. For purposes of these services:
“Catalog price” means a price included in a catalog, price list,
schedule, or other form that is regularly maintained by the
manufacturer or vendor, is either published or otherwise available for
inspection by customers, and states prices at which sales are
currently, or were last, made to a significant number of buyers
constituting the general public; and
“Market prices” means current prices that are established in the course
of ordinary trade between buyers and sellers free to bargain and that
can be substantiated through competition or from sources independent of
the offerors.
    (7) Any item, combination of items, or
service referred to in paragraphs (1) through (6) of this definition,
notwithstanding the fact that the item, combination of items, or
service is transferred between or among separate divisions,
subsidiaries, or affiliates of a contractor; or
    (8) A nondevelopmental item, if the
procuring agency determines the item was developed exclusively at
private expense and sold in substantial quantities, on a competitive
basis, to multiple State and local governments.

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