FAR 12—Acquisition of Commercial Products and Commercial Services

Scope of part.

FAR 12.000 explains the scope and purpose of FAR part 12, which governs the acquisition of commercial products, including commercial components, and commercial services. It states that part 12 contains policies and procedures that are unique to buying commercial items and that it implements the Government’s statutory preference for commercial acquisitions under 41 U.S.C. 1906, 1907, and 3307 and 10 U.S.C. 3451-3453. In practical terms, this section tells contracting personnel that when an item or service is commercial, the acquisition should be handled using policies that more closely resemble the commercial marketplace rather than the more burdensome procedures used for noncommercial procurements. The section also signals that the commercial-item framework is not optional when applicable; it is intended to encourage and support the Government’s use of commercial solutions whenever possible. For contractors, this means the Government may use streamlined terms, market-based practices, and commercial acquisition methods when buying from them. For contracting officers and acquisition teams, it establishes the legal and policy foundation for deciding whether part 12 applies and for structuring the acquisition accordingly.

Subpart 12.1

Definition.

FAR 12.001 provides a special definition of the term "subcontract" for use in FAR part 12, which governs the acquisition of commercial products and commercial services. The section makes clear that, in this part, a subcontract is not limited to a traditional purchase from one company to another; it also includes transfers of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor or subcontractor. Its purpose is to prevent parties from avoiding commercial-item subcontracting requirements simply because the work or product moves within a corporate family rather than between unrelated entities. In practice, this definition matters when determining whether part 12 policies, flowdown expectations, and related commercial-item rules apply to internal corporate transfers that function like subcontracting arrangements. It helps contracting officers and contractors identify the full scope of relationships that may be treated as subcontracts under commercial-item acquisitions.

Subpart 12.2

Subpart 12.3

Subpart 12.4

Subpart 12.5

Subpart 12.6