Defending commerciality: Considerations for contractors in managing increased government challenges to commercial item justifications

While contractors sell products and services to the US government through a variety of methods and instruments, contracting for commercial products and services streamlines the acquisition process by relying on observable market prices, rather than on an analysis of cost or pricing data; doing so exempts companies from certain compliance, audit, and reporting requirements. However, recent government actions indicate a proposed shift in the oversight of this method, creating new challenges for contractors both pre- and post-contract award.