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A few years ago, an official (Army? Corps of Engineers?) issued what I think was a policy letter explaining why construction is not a commercial item/service. Has that letter (that I can't find now) been superseded or rescinded by another letter or DFAR/FAR regulation? After many internet, DFAR, & FAR searches, I turn to you for help!


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Guest Vern Edwards

I don't know about the Corps of Engineers, but the Office of Federal Procurement Policy issued the following letter in 2003:


Note that it does not say that construction is not a commercial item. It says that commercial item terms and conditions are not suitable for construction.

FAR Part 12 lacks clauses for handling critical circumstances common to construction efforts, especially those involving new construction or non-routine alteration and repair services.Clauses that would typically be expected in theseefforts include those addressing differing site conditions, change orders, and suspensionof work. The gap in coverage reflects the fact that construction contracting was not generally contemplated when Part 12 was promulgated. New construction projects and complex alteration and repair, in particular, involve a high degree of variability, including innumerable combinations of site requirements, weather and physical conditions, labor availability, and schedules. The current coverage in Part 12 fails to allocate risk in a manner that takes into account the nature of these activities.
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