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Commercial Items

Commercial Item Updates in NDAA 2018

Each year brings about new budgets and new National Defense Authorization Acts (NDAA). NDAAs address funding, strategic plans, and rules affecting the defense acquisition process. NDAA 2018 is no exception and here are the highlights regarding cost, price, and accounting. The NDAA includes a number of provisions that reinforce the Congress’ commitment to the acquisition…

Increased Profit Margins On Government Contracts

What are your current profit margins on government contracts? Are you still bidding a fee of 6% to 10%? Many contractors think they must accept low profit margins on government contracts. Not true! FAR 15.404-4(a)(3) clearly states, “Both the Government and contractors should be concerned with profit as a motivator of efficient and effective contract…

Better Buying Power 3.0

On September 19, 2014, Frank Kendall, Under Secretary of Defense Acquisition, Technology, and Logistics released Better Buying Power 3.0, his promise for improvements in defense acquisition, competition, and pricing. In an interview with DefenseNews, Kendall acknowledged, “We’re making progress on some of the things we started in Better Buying Power 1.0 and 2.0, but there’s…

What Qualifies as a Commercial Item?

Question Are items used on a government ship ever commercial?  I’m thinking of food, laundry etc.  But what about racks that house military systems?  It seems that they would never be commercial. Answer The whole commercial item acquisition is a bit confusing – there are items that are clearly commercial (COTS, off-the-shelf) types of items…