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.

Pages 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 26 - 27 - 28 - 29 - 30 - 31 - 32 - 33 - 34 - 35 - 36 - 37 - 38 - 39 - 40 - 41 - 42 - 43 - 44 - 45 - 46 - 47 - 48 - 49 - 50 - 51 - 52 - 53 - 54 - 55 - 56 - 57 - 58 - 59 - 60 - 61 - 62 - 63 - 64

Appendix  A.  Issues  Requiring  Special  Attention

When buying commercial items and NDIs, acquisition teams must be aware of and take steps to mitigate the risks associated with three potential problems: Diminishing Manufacturing Sources and Material Shortages (DMSMS), counterfeit parts and components, and components without leaded solder and finishes.These problems can have large regulatory compliance and life-cycle cost implications, as well as issues with performance.

Diminishing Manufacturing Sources and Material Shortages

The Problem

DMSMS situations arise when a source for an item stops producing the product, when the manufacturer changes the product enough that it cannot directly replace the original product, or when procurements fail because of product unavailability. Commercial items and NDIs are particularly prone to DMSMS situations. Many of these items, especially those containing elec- tronics, have short life cycles. Such products are continuously being improved or replaced by next-generation products. A typical commercial electronic product may be available for only 2

or 3 years before a new generation of products emerges or before the item is replaced by newer technology.This trend conflicts with DoD's efforts to significantly prolong the life of weapon systems that contain such products. As a result, repair parts disappear long before the end of the weapon system's life cycle.

Obsolescence of nonelectronic and commercial off-the-shelf items also poses a significant problem to weapon systems sustainability.When a commercial item or NDI has been incorpo- rated into a defense system designed to be in service for 30 to 40 years, most of those items will eventually become obsolete and potentially become a DMSMS problem.

Risk Factors

The risk of DMSMS is due to several factors:

•  Rapid change. Commercial markets are driven by competition, profits, and market share. In the electronics technology sector, rapid technological advances drive rapid introduction of newer, more capable products. In this rapidly evolving environment, new product versions may not be interchangeable with earlier versions.

•  Limited product data. Commercial item data are generally limited to specifications, operat- ing instructions, and maintenance documentation. Buyers of commercial items may obtain

Source:  https://assist.dla.mil  --  Downloaded: 

40                                 Check  the  source  to  verify  that  this  is  the  current  version  before  use.