In the United States, commercial off-the-shelf (COTS) is a Federal Acquisition Regulation (FAR) term for commercial items, including services, available in the commercial marketplace that can be bought and used under government contract. For example, consumer goods and construction materials may qualify as COTS but bulk cargo does not. Services associated with the co
mmercial items may also qualify as COTS, including (but not limited to) installation services, training services, and cloud services.
COTS purchases are alternatives to custom developments or one-off government-funded developments. COTS typically requires configuration that is tailored for specific uses and the key characteristic that differentiates COTS from Custom software is that the user configurations are within the defined parameters of the commercial item and not the result of customizations to the commercial item itself. The use of COTS has been mandated across many government and business programs, as such products may offer significant savings in procurement, development, and maintenance.
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