SpendQueryBeta

FAR and DFARS › DFARS Part 244: Subcontracting Policies and Procedures › Subpart 244.4

DFARS 244.402 Policy requirements.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires contractors to decide whether a particular subcontract item qualifies as a commercial product or commercial service, using reasonable business judgment consistent with FAR part 10 market research guidelines. It also states that certain low-value items bought for use across multiple contracts are treated as commercial products without needing a commercial item determination. This matters because it tells contractors when they must make that determination themselves and when an item is automatically treated as commercial.

Applies to: Contractors purchasing subcontract items for Department of Defense contracts

What it requires

  • Determine whether a particular subcontract item meets the definition of a commercial product or commercial service
  • Exercise reasonable business judgment in making such determinations, consistent with FAR part 10 market research guidelines

Key terms: commercial product · commercial service · commercial item determination · market research · subcontract item

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Contractors are required to determine whether a particular subcontract item meets the definition of a commercial product or commercial service. This requirement does not affect the contracting officer's responsibilities or determinations made under FAR 15.403-1(c)(3). Contractors are expected to exercise reasonable business judgment in making such determinations, consistent with the guidelines for conducting market research in FAR part 10.

(S-70) In accordance with 10 U.S.C. 3457(c), items that are valued at less than $10,000 per item that are purchased by a contractor for use in the performance of multiple contracts with the Department of Defense and other parties and are not identifiable to any particular contract when purchased shall be treated as commercial products, even though the items may not meet the definition of “commercial product” at FAR 2.101 and do not require a commercial item determination.

Sections it refers to

  • 15.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
  • 2.101 Definitions.

← 244.305-71 Contract clause. · 244.403 Contract clause. →

Rule changes for DFARS Part 244

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 244.402 Policy requirements · SpendQuery