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Commercial Item Group (CIG)

DAU GLOSSARY DEFINITION

General Information

Commercial Item Group (CIG) The Commercial Item Group (CIG) is a group within the Cost and Pricing Regional Command of the Defense Contract Management Agency (DCMA). The team was established in 2016. The CIG’s authority comes from 10 U.S Code § 3456 [formerly 2380] which states that “The Secretary of Defense shall establish and maintain a centralized capability with necessary expertise and resources to provide assistance to the military departments and Defense Agencies in making commercial item determinations, conducting market research and performing analysis of price reasonableness for the purposes of procurements by the DoD....”  The CIG supports the 2022 National Defense Strategy, specifically addressing "Building enduring advantages... accelerate force development, get the technology we need more quickly..."

Vision: To Advance defense acquisition strategies by leveraging commercial technology resulting in American warfighter superiority.

Mission: Provide acquisition insight for the integration of commercial products and services within DoD to streamline procurements and ensure warfighters receive cutting-edge technology at fair and reasonable prices.

Commercial Item Determination (CID). Acquisition of commercial products and services, as implemented and encouraged in Federal Acquisition Regulation (FAR) Part 12, brings significant benefit to DoD including: creation and integration of new technology; greater product availability and reliability; reduced acquisition cycle times; lower life cycle costs; increased competition; and an expanded pool of innovative and non-traditional contractors that seek to do business with DoD.

The Commercial Item Database, hosted on the Procurement Integrated Enterprise Environment, provides a searchable database of commercial item determinations that supports contracting officers’ efforts to maximize commercial item buys. Market Analysis is used to develop effective acquisition strategies for procurement of commercial products and services. Knowledge of customary commercial practices that can be incorporated into an acquisition strategy to enhance competition and leverage cutting edge commercial technologies.

Commercial Item Determinations (CIDs) - Market research can be the key to a well founded commercial item determination.  FAR Part 2 includes definitions of Commercial Products and Commercial Services amounting to 8 distinct commercial definitions that often require in-depth analysis. Price Analysis - Establishing price reasonableness for sole source commercial products and services can be challenging and requires an understanding of commercial pricing techniques as well as market conditions Training and Assistance - CIG experts can provide an overview of techniques and tools used to evaluate commerciality and pricing of products and services. Also supports when a determination of full pricing reasonableness  is not required. CIG can offer to mentor, or support negotiations, and this may be ongoing. Other support may be available.

Other Transaction (OT) Pricing: The CIG issued a paper promoting novel approaches to determining fair pricing without Cost Data for OT efforts. This initiative supports streamlining acquisitions and increases affordability/lethality for the Department.

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