---
kind: "section"
citation: "41 U.S.C. § 103"
title: "41"
title_heading: "Public Contracts"
number: "103"
heading: "Commercial product"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/41/103"
units:
  - "Subtitle I — Federal Procurement Policy"
  - "Division A — General"
  - "Chapter 1 — Definitions"
  - "Subchapter I — Subtitle Definitions"
---

# §103. Commercial product


In this subtitle, the term “commercial product” means any of the following:

- (1) A product, other than real property, that—
  - (A) is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes; and
  - (B) has been sold, leased, or licensed, or offered for sale, lease, or license, to the general public.
- (2) A product that—
  - (A) evolved from a product described in [paragraph (1)](#1) through advances in technology or performance; and
  - (B) is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Federal Government solicitation.
- (3) A product that would satisfy the criteria in paragraph [(1)](#1) or [(2)](#2) were it not for—
  - (A) modifications of a type customarily available in the commercial marketplace; or
  - (B) minor modifications made to meet Federal Government requirements.
- (4) Any combination of products meeting the requirements of paragraph [(1)](#1), [(2)](#2), or [(3)](#3) that are of a type customarily combined and sold in combination to the general public.
- (5) A product, or combination of products, referred to in paragraphs [(1)](#1) through [(4)](#4), even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor.
- (6) A nondevelopmental item if the procuring agency determines, in accordance with conditions in the Federal Acquisition Regulation, that—
  - (A) the product was developed exclusively at private expense; and
  - (B) has been sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments.

## Source credit

(Added Pub. L. 115–232, div. A, title VIII, § 836(a)(1), Aug. 13, 2018, 132 Stat. 1859.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 103, Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3679; Pub. L. 115–91, div. A, title VIII, § 847(a), Dec. 12, 2017, 131 Stat. 1487, defined term “commercial item”, prior to repeal by Pub. L. 115–232, div. A, title VIII, § 836(a)(1), Aug. 13, 2018, 132 Stat. 1859, effective Jan. 1, 2020. See Effective Date note below.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective, and repeal of former section 103 effective, on Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.