FAR and DFARS › FAR Part 12: Acquisition of Commercial Products and Commercial Services › Subpart 12.5
FAR 12.503 Applicability of certain laws to Executive agency contracts for the acquisition of commercial products and commercial services.
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 lists laws that do not apply, or apply with modifications, to Executive agency contracts for commercial products and commercial services. It matters because it reduces the compliance burden for contractors selling commercial items to the government.
Applies to: Executive agency contracts for the acquisition of commercial products and commercial services
Key terms: commercial products · commercial services · Executive agency contracts · applicability · modified
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) The following laws are not applicable to Executive agency contracts for the acquisition of commercial products or commercial services:
(1) 10 U.S.C. 983, Institutions of Higher Education that Prevent ROTC Access or Military Recruiting on Campus: Denial of Grants and Contracts from Department of Defense, Department of Education, and Certain Other Departments and Agencies (see 9.110).
(2) 31 U.S.C. 1354(a), Limitation on Use of Appropriated Funds for Contracts with Entities Not Meeting Veterans' Employment Reporting Requirements (see 22.1302).
(3) 41 U.S.C. 1708(e)(3), Minimum Response Time for Offers (see 5.203).
(4) 41 U.S.C. 2303(b), Policy on Personal Conflicts of Interest by Contractor Employees (see subpart 3.11).
(5) 41 U.S.C. 3901(b) and 10 U.S.C. 3321(b) Contingent Fees (see 3.404).
(6) 41 U.S.C. 4706(d)(1) and 10 U.S.C. 3841(d)(1), GAO Access to Contractor Employees, section 871 of Public Law 110-417 (see 52.214-26 and 52.215-2).
(7) 41 U.S.C. chapter 65, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $10,000 (see subpart 22.6).
(8) 41 U.S.C. chapter 81, Drug-Free Workplace (see 26.501).
(9) Section 806(a)(3) of Public Law 102-190, as amended by sections 2091 and 8105 of Public Law 103-355 (10 U.S.C. 4601 note prec.), Payment Protections for Subcontractors and Suppliers (see 28.106-6).
(10) 15 U.S.C. 644(w), Solicitation Notice Regarding Administration of Change Orders for Construction (see 36.211).
(b) Certain requirements of the following laws are not applicable to executive agency contracts for the acquisition of commercial products or commercial services:
(1) 22 U.S.C. 2593e, Requirement for a certification under Measures Against Persons Involved in Activities that Violate Arms Control Treaties or Agreements with the United States (see 9.109).
(2) 40 U.S.C. chapter 37, Requirement for a certificate and clause under the Contract Work Hours and Safety Standards statute (see 22.305).
(3) 41 U.S.C. 8703 and 8704, Requirement for a clause and certain other requirements related to kickbacks (see 3.502).
(4) 49 U.S.C. 40118, Requirement for a clause under provisions of the Government-financed air transportation statute, commonly referred to as the Fly America Act, except that 49 U.S.C. 40118(g) is applicable to the acquisition of commercial services (see 47.405).
(c) The applicability of the following laws have been modified in regard to Executive agency contracts for the acquisition of commercial products and commercial services:
(1) 41 U.S.C. 4704 and 10 U.S.C. 4655, Prohibition on Limiting Subcontractor Direct Sales to the United States (see 3.503).
(2) 41 U.S.C. chapter 35 and 10 U.S.C. chapter 271, Truthful Cost or Pricing Data (see 15.403).
(3) 41 U.S.C. chapter 15, Cost Accounting Standards (see 48 CFR chapter 99) (see 12.214).
Sections it refers to
- 9.110 Reserve Officer Training Corps and military recruiting on campus.
- 22.1302 Policy.
- 5.203 Publicizing and response time.
- 3.404 Contract clause.
- 52.214-26 Audit and Records—Sealed Bidding.
- 52.215-2 Audit and Records—Negotiation.
- 26.501 Applicability.
- 28.106-6 Furnishing information.
- 36.211 Distribution of advance notices and solicitations.
- 9.109 Prohibition on contracting with an entity involved in activities that violate arms control treaties or agreements with the United States.
- 22.305 Contract clause.
- 3.502 Subcontractor kickbacks.
- 47.405 Contract clauses.
- 3.503 Unreasonable restrictions on subcontractor sales.
- 15.403 Obtaining certified cost or pricing data.
- 12.214 Cost Accounting Standards.
← 12.502 Procedures. · 12.504 Applicability of certain laws to subcontracts for the acquisition of commercial products and commercial services. →
Rule changes for FAR Part 12
- Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 8, 12, 13, 15, 38, 44, and 51 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Prohibition on Certain Semiconductor Products and Services ↗ · proposed 2026-02-17 · comments due 2026-04-20
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Ending Procurement and Forced Use of Paper Straws ↗ · proposed 2025-07-21 · comments due 2025-09-19
- Federal Acquisition Regulation: Small Business Participation on Certain Multiple-Award Contracts ↗ · proposed 2025-06-12
- Federal Acquisition Regulation: Small Business Participation on Certain Multiple-Award Contracts ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Controlled Unclassified Information ↗ · proposed 2025-01-15 · comments due 2025-03-17
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.