2. Procurement Rules and Practices

Encourage self-funded development.

If the USG did not pay for development, it has no skin in the game. Include a presumption under FAR 2.101 that an item is commercial if developed entirely at private expense. Such items can be purchased at firm fixed prices and with no schedule or development risk to the USG. These advantages are undercut, however, if such items cannot be purchased efficiently (or at all). The increased transaction costs and complex procedures associated with FAR Part 15 procurements are not justified for these transactions. Including this presumption would create a more straightforward and more appropriately drawn rule than under the current (often misapplied) definition. Cost-based pricing is also almost always impossible for such products, as presumably no one would have tracked costs on self-funded development.

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Idea No. 51