Enclosure 2 to COMDTINST 5224.3
APPENDIX B - DEFINITION OF TERMS
Commerce Business Daily (CBD) - CBD is the public notification media by which U.S.
Government agencies identify proposed contract actions and contract awards. The CBD is
published in five or six daily editions weekly, as necessary.
Commercial Activity - A commercial activity is the process resulting in a product or service that is
or could be obtained from a private sector source. Agency missions may be accomplished through
commercial facilities and resources, Government facilities and resources, or mixes thereof,
depending upon the product, service, type of mission and the equipment required.
Commercial Source - A commercial source is any business or other concern that is eligible for
contract award in accordance with Federal Acquisition Regulations.
Contracting Officer (KO) - A Contracting Officer is the only person with authority to create,
modify or terminate a contract. The Contracting Officer is the only official who can obligate the
government through a contract.
Conversion to Contract - A conversion to contract is the change of performance of a commercial
activity from in-house performance by Federal employees to performance by a commercial source.
Conversion from Contract - Conversion from contract to in-house performance means the change
of a commercial activity from performance by contract with a commercial source to performance
by Federal employees with Government resources. It also includes the conversion of expansions
and/or new requirements (work) from contract performance to in-house performance.
Core capability - A core capability is a commercial activity operated by a cadre of highly skilled
employees, in a specialized technical or scientific development area, to ensure that a minimum
capability is maintained. The core capability does not include the skills, functions or FTE that may
be retained in-house for reasons of National Defense, including military mobilization, security or
rotational necessity, or to the patient care or research and development activities, as provided in
OMB Circular A-76 Revised Handbook.
Cost comparison - A cost comparison is the process whereby the estimated cost of Government
performance of a commercial activity is formally compared, in accordance with the principles and
procedures of this Circular and Supplement, to the cost of performance by commercial or
Determinations and Findings - A special form of written approval by an authorized official that is
required by statute or regulation as a prerequisite to taking certain contract actions. The
"determination" is a conclusion or decision supported by the "findings". The findings are
statements of fact or rationale essential to support the determination and must cover each
requirement of the statute or regulation. (FAR 1.701)
Expansion - An expansion is the modernization, replacement, upgrading or the enlargement of an
in-house commercial activity or capability. If the expansion involves a 30-percent increase in the
operating cost of the activity, a 30 percent increase in the total capital investment to perform the
activity or an increase of 65 FTE or more, a cost comparison is required prior to authorizing in-
house performance. A consolidation of two or more existing commercial activities is not