DFARS Part 212: Acquisition of Commercial Products and Commercial Services

In plain English

DFARS Part 212 implements the acquisition of commercial products and commercial services for DoD, supplementing FAR Part 12. It covers definitions, applicability, procedures, contract types, price reasonableness, and special rules for commercial solutions openings (CSOs). For contractors, it clarifies when commercial procedures can be used, what clauses apply, and how to sell innovative solutions to DoD.

Key rules

• Use of FAR Part 12 procedures for commercial acquisitions is based on a determination that an item is a commercial product or commercial service, or on specific statutory authority. (212.102)
• Time-and-materials and labor-hour contracts for commercial services are authorized only for services supporting a commercial product, emergency repair services, or with a written determination approved by the head of the agency. (212.207)
• Agencies must conduct or obtain market research to determine the reasonableness of price for commercial products and commercial services in any bid or offer. (212.209)
• Certain FAR and DFARS provisions and clauses are not applicable to contracts for commercial products, commercial services, and COTS items. (212.370, 212.371)
• Certain laws are not applicable to Executive agency contracts or subcontracts for commercial products and commercial services, or to COTS contracts. (212.503, 212.504, 212.505)
• Contracting officers may use a commercial solutions opening (CSO) to acquire innovative commercial products or services, and must use fixed-price type contracts for awards resulting from a CSO. (212.7002)
• A CSO must describe the agency's interest, required technical data, evaluation factors, proposal acceptance period, and instructions. (212.7004)
• Award of a contract in excess of $100 million resulting from a CSO requires senior procurement executive approval and congressional notification. (212.7003, 212.7005)

Who does what

In practice

• If you are selling a commercial product or service to DoD, FAR Part 12 procedures may apply, which can streamline the acquisition process and reduce the number of clauses.
• For commercial services, time-and-materials or labor-hour contracts are generally not allowed unless specific conditions are met, so you may need to propose fixed-price or other contract types.
• If you have an innovative commercial solution, consider responding to a CSO, but be aware that awards over $100 million require high-level approval and congressional notification.
• Certain laws and clauses do not apply to commercial and COTS contracts, which can reduce your compliance burden.

Common pitfalls

• Assuming that all commercial acquisitions automatically use FAR Part 12 procedures; a determination or statutory authority is required.
• Using time-and-material or labor-hour contracts for commercial services without the required written determination and agency head approval.
• Failing to conduct or obtain market research for price reasonableness, which is mandatory for commercial products and services.
• In a CSO, proposing a contract type other than fixed-price, as CSOs require fixed-price type contracts.

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.