SD-2 Dod Acquisitions Buying Commercial Items And Nondevelopmental ItemsThis document offers guidance on acquisitions involving all types of commercial and nondevelopmental items: systems, subsystems, assemblies, parts, and items of supply. Commercial services are also addressed.This document does not present a “cookbook” approach to the acquisition of commercial and nondevelopmental items; such an approach could not accommodate the vast array of potential applications. It does offer lessons learned and things to consider when participating on an integrated product team.

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The need to field a system as quickly as possible also is a major incentive for using commer- cial products or NDis.The use of commercial products and NDis reduces or eliminates the

need for time-consuming and costly R&D and thus expedites the time to field systems.The use of commercial products and NDis also can reduce a program's technical risks.

Another incentive for DoD to use commercial products is the potential savings in procure- ment costs.The economies of scale of the much larger commercial market allow items to be sold at lower prices. Lower costs for commercial products not only benefit the taxpayer, but may al- low more development dollars to be spent in areas for which no commercial alternatives exist.

The integration of the defense and commercial industrial bases is another important benefit from the use of commercial products. DoD requirements that are integrated into commercial production are far more likely to have a stable industrial base to draw from if a surge in require- ments occurs due to an emergency. in addition, in times of reduced procurement, DoD business is not sufficient to keep many defense-unique suppliers in business. integrated commercial and defense production is beneficial for the nation's security and economy in the long run.

Finally, when DoD uses commercial products, DoD gains access to the contractor's commer- cial support network.This may include installation, maintenance and repairs, training and tech- nical support, and inventory and logistics support. DoD can take advantage of the commercial contractor's distribution and support network without having to maintain or establish its own network or to pay a contractor to establish one where none existed.The savings in dollars, as well as in improved customer satisfaction, can be substantial.

DoD also benefits from the use of standalone commercial services such as construction and

R&D.The benefits, similar to those of commercial products and NDis, include

•  access to the service provider's commercial service network,

•  lower costs through economies of scale,

•  market acceptance of the service and provider, and

•  efficiency and expertise acquired through market-driven competition.

Another benefit of obtaining commercial services is that they can often be tailored to the needs of the customer. For example, a commercial service provider's equipment maintenance plan may offer a minimum level, typical level, or high level of maintenance, depending on the user's needs.This allows for greater flexibility when making tradeoff decisions.

What Are the Challenges ?

Although commercial items and NDis bring significant benefits to DoD, they also can pose challenges. For example, one challenge with buying commercial products is that the numerous