FAR 25.105—Critical components and critical items.
Plain-English Summary
FAR 25.105 addresses the Government’s list of articles that have been designated as critical components or critical items and the preference factors associated with those articles. It explains that the list is maintained in the regulation, that some entries may be reserved, and that the list must be published in the Federal Register for public comment at least once every four years. The section also allows anyone to submit unsolicited recommendations to delete items from the list, provided the submission includes enough data and rationale for evaluation under FAR 1.502. In practice, this section matters because the critical-component/critical-item designation affects how the Government evaluates the reasonableness of cost for domestic end products under FAR 25.106(c). Contractors need to know whether their products contain listed items, and contracting personnel need to apply the preference factors correctly when performing cost reasonableness analysis.
Key Rules
Listed items control
The section establishes that certain articles have already been determined to be critical components or critical items, and each has an assigned preference factor. Those listed items are the ones that drive the analysis under this section.
Reserved entries
Paragraphs (a)(1) and (a)(2) are reserved, which means no substantive rule is stated there in the current text. Users should rely on the published list and any applicable updates rather than assuming those reserved slots contain active requirements.
Periodic Federal Register review
The list and preference factors must be published in the Federal Register for public comment at least once every four years. This creates a recurring opportunity to review whether listed items should remain on the list or be adjusted.
Unsolicited deletion requests allowed
Any party may submit recommendations to delete items from the list at any time. The submission must include sufficient data and rationale to support evaluation, consistent with FAR 1.502.
Used for cost reasonableness
The list is used when determining the reasonableness of cost for domestic end products that contain critical components or are critical items, as referenced in FAR 25.106(c). The practical effect is that the listed status can influence price/cost evaluation outcomes.
Responsibilities
Agency
Maintain the list of critical components and critical items, ensure the associated preference factors are published for public comment at least every four years, and consider public input and deletion recommendations.
Contracting Officer
Use the list and preference factors when determining the reasonableness of cost for domestic end products under FAR 25.106(c), and ensure the correct current version of the list is applied in acquisition decisions.
Contractor
Identify whether offered domestic end products contain listed critical components or are critical items, and understand how those designations may affect cost reasonableness analysis and pricing strategy.
Public/Interested Parties
Submit unsolicited recommendations for deletions when appropriate, including enough data and rationale to permit evaluation under FAR 1.502.
Practical Implications
This section is mainly a cross-reference rule, but it can materially affect pricing and evaluation because listed critical components/items may change how domestic end product costs are judged reasonable.
Contractors should verify the current Federal Register publication and not rely on outdated internal lists, especially in long-running programs or repeat buys.
A common pitfall is treating the list as static; the regulation requires periodic publication and allows deletion requests, so the list can change over time.
When preparing proposals or cost analyses, teams should check whether the end product contains any listed items and document the basis for their conclusion.
Contracting officers should make sure the correct current preference factors are used in conjunction with FAR 25.106(c), since using stale factors can distort the reasonableness determination.
Official Regulatory Text
(a) The following is a list of articles that have been determined to be a critical component or critical item and their respective preference factor(s). (1)-(2) [Reserved] (b) The list of articles and preference factors in paragraph (a) of this section will be published in the Federal Register for public comment no less frequently than once every 4 years. Unsolicited recommendations for deletions from this list may be submitted at any time and should provide sufficient data and rationale to permit evaluation ( see 1.502 ). (c) For determining reasonableness of cost for domestic end products that contain critical components or are critical items ( see 25.106 (c)).