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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Figure.A.-1...Relationship between Type of Supplier and Level of Risk and Trust

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•  A franchised distributor has a contractual agreement with the OCM to buy, stock, repack- age, sell, and distribute its parts.

•  An authorized distributor is officially authorized by the OCM to sell its parts.

•  An aftermarket manufacturer has permission from the OCM to manufacture and sell the

OCM's intellectual property as replacement parts.

•  An OEM produces or builds equipment or systems containing OCM parts.

•  An independent distributor purchases parts with the intention to sell and redistribute them, generally with no contract, authorization, or direct relationship with the OCM.

e  A stocking distributor stocks large inventories of parts, which may be purchased from any number of sources.

e  A broker distributor searches the market and locates parts that meet the customer's requirements and target price. Brokers locate parts but do not necessarily stock parts. A broker distributor may, in some instances, be a single individual operating out of a private home, warehouse, or storefront.