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  • Question

    These services, but not for the unusually city regulations, are of a type that meet the definition for Commercial Services set forth in the FAR. So, when procuring a follow-on contract to the existing Refuse Collection contract in this highly regulated city, is it permissible to utilize Commercial Item Procedures, despite the fact that these specific services are not sold competitively based on market pricing (city controls the pricing)?


    Answer

    This response is based on clarification subsequently obtained from the submitter— Because an item or service is usually considered a commercial item does not mean that it is in every situation. Yes, refuse collection is often commercial. However, no part of the definition for a commercial item at FAR 2.101 defines refuse collection as "commercial" in your particular non-competitive situation, so it doesn't appear you can use FAR Part 12 procedures in your case.

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