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Nicole Owren-Wiest Discusses Proposed DOD Guidance on Commercial Item Pricing

Bloomberg BNA’s Federal Contracts Report
August 4, 2015

A client alert by Nicole J. Owren-Wiest, a partner in Wiley Rein’s Government Contracts Practice, was cited by Bloomberg BNA’s Federal Contracts Report in yesterday’s coverage of a U.S. Department of Defense (DOD) proposed rule to establish guidance on commercial item pricing. The proposed rule may change requirements for commercial item determinations and price reasonableness evaluations.

In the August 3 client alert, Ms. Owren-Wiest said the current draft of the rule “appears to eliminate the ‘offered for sale’ prong” of the definition of “commercial item” at Federal Acquisition Regulation 2.101. The definition “could be interpreted to impose a 50% sales standard for items to qualify as ‘commercial,’” she said.

The proposed rule also includes “broad” subcontract data requirements, Ms. Owren-Wiest said. It would require contractors to “obtain from subcontractors whatever information is necessary to support a determination of price reasonableness,” she said.