FAR Part 12 — Acquisition of Commercial Products and Commercial Services
FAR Part 12 prescribes policies and procedures for the acquisition of commercial products and commercial services, including commercially available off-the-shelf (COTS) items. It implements streamlined procedures that tailor the FAR process to resemble commercial buying practices, using firm-fixed-price or fixed-price with economic price adjustment contracts. Subpart 12.2 covers special requirements for commercial product and service acquisitions, and Subpart 12.3 addresses solicitation provisions and contract clauses specific to commercial acquisitions.
Why Part 12 Matters
Commercial item acquisitions represent a significant portion of federal spending and offer streamlined terms and fewer compliance burdens compared to non-commercial acquisitions. Contractors benefit from reduced cost accounting, audit, and disclosure requirements. However, the commercial item determination itself is often contested — an incorrect determination can result in waiving critical government protections or imposing unnecessary requirements on commercial firms.
Key Topics in Part 12
FAR Part 12 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.
- Commercial product and commercial service definitions
- Streamlined solicitation procedures (SF 1449)
- Commercial item determination process
- Tailored contract clauses (Subpart 12.3)
- Firm-fixed-price preference for commercial acquisitions
- COTS item exemptions
- Inapplicability of certain FAR provisions to commercial items
- Market price reasonableness determinations
How FAR Part 12 Applies
The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 12 (Acquisition of Commercial Products and Commercial Services) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.
The requirements in Part 12 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 12, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.
Agency supplements: Individual federal agencies may supplement FAR Part 12 with additional requirements. The most common supplements include the Defense Federal Acquisition Regulation Supplement (DFARS), General Services Administration Acquisition Manual (GSAM), and NASA FAR Supplement (NFS). Always check applicable agency supplements when working on specific procurements.
Subparts
FAR Part 12 is divided into 6 subparts, each addressing a specific aspect of acquisition of commercial products and commercial services.
- 12.1 — Acquisition of Commercial Products and Commercial Services
- 12.2 — Special Requirements for the Acquisition of Commercial Products and Commercial Services
- 12.3 — Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Products and Commercial Services
- 12.4 — Unique Requirements Regarding Terms and Conditions for Commercial Products and Commercial Services
- 12.5 — Applicability of Certain Laws to the Acquisition of Commercial Products, Commercial Services and Commercially Available Off-the-Shelf Items
- 12.6 — Streamlined Procedures for Evaluation and Solicitation for Commercial Products and Commercial Services
Reading FAR Part 12
The full text of FAR Part 12 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.
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What does FAR Part 12 cover?
FAR Part 12 covers acquisition of commercial products and commercial services within the federal acquisition process. FAR Part 12 prescribes policies and procedures for the acquisition of commercial products and commercial services, including commercially available off-the-shelf (COTS) items. It implements streamlined procedures that tailor the FAR process to resemble commercial buying practices, using firm-fixed-price or fixed-price with economic price adjustment contracts. Subpart 12.2 covers special requirements for commercial product and service acquisitions, and Subpart 12.3 addresses solicitation provisions and contract clauses specific to commercial acquisitions.
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Who must comply with FAR Part 12?
FAR Part 12 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.
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Where can I read the full text of FAR Part 12?
The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.
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How does FAR Part 12 relate to contract clauses?
FAR Part 12 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.
Data sourced from eCFR . Federal contracting data is public domain.