212.7100 - Scope
This subpart establishes the pilot program authorized by section 866 of the National Defense Authorization Act for Fiscal Year 2011 (Pub. L. 111-383), as modified by section 892 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92).

212.7101 - Definitions
As used in this subpart—
“Military-purpose nondevelopmental item” means a nondevelopmental item that meets a validated military requirement, as determined in writing by the responsible program manager, and has been developed exclusively at private expense. An item shall not be considered to be developed at private expense if development of the item was paid for in whole or in part through—
(1) Independent research and development costs or bid and proposal costs, per the definition in FAR 31.205-18, that have been reimbursed directly or indirectly by a Federal agency or have been submitted to a Federal agency for reimbursement; or
(2) Foreign government funding.
“Nondevelopmental item” is defined in FAR 2.101 and also includes previously developed items of supply that require modifications other than those customarily available in the commercial marketplace if such modifications are consistent with the requirement at 212.7102-1 (c)(1).

212.7102 - Pilot program


212.7102-1 - Contracts under
the program
The contracting officer may utilize this pilot program to enter into contracts for the acquisition of military-purpose nondevelopmental items. See PGI 212.7102 for file documentation requirements. Each contract entered into under the pilot program shall—
(a) Be a firm-fixed-price contract, or a fixed-price contract with an economic price adjustment clause;
(b) Be in an amount not in excess of $100 million;
(c) Provide—
(1) For the delivery of an initial lot of production quantities of completed items not later than nine months after the date of the award of such contract; and
(2) That failure to make delivery as provided for under paragraph (c)(1) may result in termination for cause; and
(d) Be—
(1) Exempt from the requirement to submit certified cost or pricing data;
(2) Exempt from the cost accounting standards under 41 U.S.C. 1502; and
(3) Subject to the requirement to provide data other than certified cost or pricing data for the purpose of price reasonableness determinations.

212.7102-2 - Reporting requirements
Departments and agencies shall prepare a consolidated annual report to provide information about contracts awarded under this pilot authority. The report shall be submitted to the Office of the Deputy Director, Defense Procurement and Acquisition Policy (Contract Policy and International Contracting), by October 31 each year in accordance with the procedures at PGI 212.7102 . See PGI 212.7102 for annual reporting format.

212.7102-3 - Sunset of the pilot authority
(a) The authority to carry out the pilot program described in this subpart expires on December 31, 2019.
(b) The expiration under paragraph (a) of this section of the authority to carry out the pilot program will not affect the validity of any contract awarded under the pilot program before the expiration of the pilot program under that paragraph.

212.7103 - Solicitation provision
Use the provision at 252.212-7002 , Pilot Program for Acquisition of Military-Purpose Nondevelopmental Items, in solicitations when use of the pilot program is planned and the applicability criteria of 212.7102-1 are met.