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FAR and DFARS › FAR Part 12: Acquisition of Commercial Products and Commercial Services › Subpart 12.2

FAR 12.209 Determination of price reasonableness.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers how to determine that prices for commercial products and commercial services are reasonable. It reminds them that commercial prices are shaped by things like delivery speed, warranty, liability limits, quantity, and performance period, and that the contract terms and prices must match what the Government actually needs.

Applies to: Contracting officers pricing commercial products and commercial services

What it requires

  • Establish price reasonableness in accordance with 13.106-3, 14.408-2, or subpart 15.4, as applicable
  • Ensure that contract terms, conditions, and prices are commensurate with the Government's need

Key terms: price reasonableness · customary commercial terms and conditions · commercial products · commercial services · commensurate

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

While the contracting officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or subpart 15.4, as applicable, the contracting officer should be aware of customary commercial terms and conditions when pricing commercial products and commercial services. Commercial product and commercial service prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller's liability, quantities ordered, length of the performance period, and specific performance requirements. The contracting officer must ensure that contract terms, conditions, and prices are commensurate with the Government's need.

Sections it refers to

  • 13.106-3 Award and documentation.
  • 14.408-2 Responsible bidder—reasonableness of price.

← 12.208 Contract quality assurance. · 12.210 Contract financing. →

Rule changes for FAR Part 12

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 12.209 Determination of price reasonableness · SpendQuery