Contracting Cone

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FAR Based Strategies

Ordering under the Federal Supply Schedule
Acquisition of Commercial Products and Commercial Services
Simplified Procedures for Noncommercial Acquisitions
Contracting by Negotiation
Indefinite-Delivery Contracts
Letter Contracts
Agreements
Small Business
Broad Agency Announcement
Commercial Solutions Opening

Statutory Strategies

SBIR/STTR Programs
Other Transactions
Procurement for Experiments
R&D Agreements
Cooperative R&D Agreement
Partnership Intermediary Agreement
Technology Investment Agreement
Contract Type Matrix

Defense Commercial Solutions Opening
DFARS Subpart 212.70

A Defense Commercial Solutions Opening, or CSO, is a competitive procedure used by DoD to acquire innovative commercial products or commercial services through a general solicitation. CSOs may be used to obtain innovative solutions or potential capabilities that fulfill requirements, close capability gaps, or provide potential technological advancements when meaningful proposals with varying technical or scientific approaches can be reasonably anticipated. DFARS Subpart 212.70 implements 10 U.S.C. § 3458.

For CSO purposes, innovative means any technology, process, or method, including research and development, that is new as of proposal submission, or any new application of an existing technology, process, or method as of proposal submission. Products and services acquired using a CSO are treated as commercial products or commercial services.

CSOs may be used for research and development when used in conjunction with FAR Part 35 and DFARS Part 235. A CSO is not subject to the limitations at DFARS 235.016 and may be used to fulfill R&D requirements ranging from advanced component development through operational systems development.

CSO procedures are similar to Broad Agency Announcement procedures, but CSOs are broader in the sense that they may be used to acquire innovative commercial products, commercial services, technologies, or capabilities that directly support program requirements. BAAs remain focused on basic and applied research, and that part of development not related to a specific system or hardware procurement.

CSO procedures may also be used with other authorized award instruments, such as other transaction agreements, when the selected strategy has independent statutory authority and the applicable limitations and approval requirements are satisfied.

Common Applications

  • Innovative commercial products and commercial services
  • Commercial technology maturation
  • R&D solutions involving commercial technology
  • Capability-gap solutions
  • Technology demonstrations and operationally relevant prototypes

 

Pros

Cons
Provides a competitive, streamlined path to acquire innovative commercial solutions.  Data rights, technical data, software rights, and commercial licenses must be carefully addressed.
Allows DoD to reach nontraditional and innovative vendors. CSO use is limited to innovative solutions or potential capabilities and is not a general-purpose acquisition shortcut.
Can support R&D efforts from advanced component development through operational systems development. Fixed-price type contract limitations may not fit every development effort.
Can result in FAR-based contracts or, when separately authorized, agreements. Awards over $100 million require senior procurement executive approval procedures.

 

Restrictions

  • CSOs may only be used to obtain innovative solutions or potential capabilities that fulfill requirements, close capability gaps, or provide potential technological advancements.
  • Meaningful proposals with varying technical or scientific approaches must be reasonably anticipated.
  • Awards resulting from a CSO must use fixed-price type contracts, including fixed-price incentive contracts when appropriate.
  • Products and services acquired using a CSO must be treated as commercial products or commercial services.
  • For R&D, CSOs must be used in conjunction with FAR Part 35 and DFARS Part 235.
  • Contracts exceeding $100 million require senior procurement executive approval procedures at PGI 212.7003.

 

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