FAR Part 12: Acquisition of Commercial Products and Commercial Services

In plain English

FAR Part 12 establishes policies and procedures unique to the acquisition of commercial products and commercial services, implementing the Government's preference for commercial items. It aims to make acquisitions more like the commercial marketplace, encouraging the use of commercial products and services. For contractors, this part means streamlined processes, use of commercial terms, and exemptions from certain laws.

Key rules

• Agencies must conduct market research to determine if commercial products or services are available to meet their needs and acquire them when available. (12.101)
• Contracting officers must use the policies in Part 12 in conjunction with the procedures in Part 13, 14, or 15 for solicitation, evaluation, and award. (12.102)
• Firm-fixed-price or fixed-price with economic price adjustment contracts must be used for commercial acquisitions, except time-and-materials or labor-hour contracts may be used for commercial services under certain conditions. (12.207)
• Contracts for commercial products must rely on contractors' existing quality assurance systems instead of Government inspection and testing before acceptance, unless customary market practices include in-process inspection. (12.208)
• The Government shall acquire only the technical data and rights customarily provided to the public with a commercial product or process, and presume data was developed exclusively at private expense. (12.211)
• Commercial computer software and documentation shall be acquired under licenses customarily provided to the public, and contractors generally shall not be required to furnish non-customary technical information or relinquish Government rights. (12.212)
• Cost Accounting Standards do not apply to firm-fixed-price or fixed-price with economic price adjustment contracts for commercial products or services, provided the price adjustment is not based on actual costs incurred. (12.214)
• Contracts for commercial products or services shall include only clauses required by law or executive order, or determined to be consistent with customary commercial practice. (12.301)

Who does what

In practice

• When bidding, you can often use your existing commercial terms and conditions, and the Government will generally accept customary commercial warranties and quality assurance.
• During performance, the Government will rely on your quality assurance system for commercial products, reducing Government inspection.
• You may not need to comply with Cost Accounting Standards for firm-fixed-price commercial contracts.
• You can provide commercial computer software under your standard commercial license, and you are not required to provide non-customary technical information.

Common pitfalls

• Assuming all laws apply: Many laws are not applicable to commercial contracts, subcontracts, or COTS items, as listed in 12.503, 12.504, and 12.505.
• Using the wrong contract type: Firm-fixed-price or fixed-price with economic price adjustment is required unless a time-and-materials or labor-hour contract is specifically allowed for certain commercial services.
• Providing non-customary technical data: The Government only acquires technical data customarily provided to the public, and you should not be required to furnish more.
• Ignoring the streamlined procedures: You can use combined synopsis/solicitation to reduce time, but must follow the specific steps in 12.603.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.