1. Any previously developed item of supply used exclusively for government purposes by a federal agency, a State or local government, or a foreign government with which the United States has a mutual defense cooperation agreement. 2. Any item described in item 1 that requires only minor modifications or modifications of the type customarily available in the commercial marketplace in order to meet the requirements of the procuring department or agency. 3. Any item of supply being produced that does not meet the requirements of items 1 or 2 solely because the item is not yet in use.