Reference · Contract vehicles & pricing
FAR Part 12
Acquisition of Commercial Products and Commercial Services
FAR Part 12 governs how the government buys commercial products and services, using streamlined, commercial-like terms rather than the full clause load of other acquisitions. It favors firm-fixed-price and market-based pricing.
What it is
When an item or service qualifies as commercial, FAR Part 12 lets the government buy it much as a commercial customer would — fewer clauses, commercial terms, and reliance on market pricing rather than cost analysis.
Why it exists
It lowers the barrier for commercial companies (including COTS suppliers) to sell to the government and speeds routine buys.
Who it applies to
Contractors offering commercial products or services, including commercial-off-the-shelf (COTS) items, which are a subset of commercial products bought without modification.
Frequently asked
What is FAR Part 12?
FAR Part 12 is the part of the Federal Acquisition Regulation governing the purchase of commercial products and services. It uses streamlined, commercial-like terms and market-based pricing, making it easier and faster for the government to buy commercial and off-the-shelf items.
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