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  • Question

    Is a foreign government, i.e. Royal Air Force, considered a commercial buyer or a governmental entity per the FAR Part 2.101 definition?


    Answer

    A Foreign Government would not be considered a commercial entity.  The FAR and DFARS is not overly prescriptive in this area.  But, if one was to look at the definition of a commercial item in section 2.101, it uses the phrase "customarily used by the general public or by non-governmental entities for purposes other than governmental purposes"  This description would also be equally applicable to services as well.  A foreign government would have purposes that are unique to that government and not directly applicable to the general public.  In some cases, foreign governments do have state-owned enterprises that act similar to commercial entities, but are solely unique to that foreign government.  Example, wholly government-owned marketing, sales, and export enterprises sell defense articles and services to other foreign governments under foreign military sales 'like' transactions, but are not open to the general public.

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