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July 2014
PHOTOGRAMMETRIC ENGINEERING & REMOTE SENSING
Appendix 4: Excerpts from FAR Part 12: Acqui-
sition of Commercial Items
ht tps : / / acqu i s i t i on . gov / f ar / html / FARTOCP12 . htm-
l#wp1033864
12.000 Scope of part.
This part prescribes policies and procedures unique to the
acquisition of commercial items. It implements the Federal
Government’s preference for the acquisition of commercial
items contained in Title VIII of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103-355) by establish-
ing acquisition policies more closely resembling those of the
commercial marketplace and encouraging the acquisition of
commercial items and components.
12.001 Definition.
“Subcontract,” as used in this part, includes, but is not limited
to, a transfer of commercial items between divisions, subsid-
iaries, or affiliates of a contractor or subcontractor.
Subpart 12.1—Acquisition of Commercial Items—General
12.101 Policy.
Agencies shall—
a. Conduct market research to determine whether com-
mercial items or non developmental items are available
that could meet the agency’s requirements;
b. Acquire commercial items or non developmental items
when they
are available to meet the needs of the agency;
and
Require prime contractors and subcontractors at all tiers to
incorporate, to the maximum extent practicable, commercial
items or non developmental items as components of items sup-
plied to the agency.
12.102 Applicability.
a. This part s
hall be used for the acquisition of supplies or
services that meet th
e definition of commercial items at
2.101.
b. C
ontracting officers shall use the policies in this part in
conjunction with the policies and procedures for solicita-
tion, evaluation and award prescribed in Part 13, Sim-
plified Acquisition Procedures; Part 14, Sealed Bidding;
or Part 15, Contracting by Negotiation, as appropriate
for the particular acquisition.
c. Contracts for the acquisition of commercial items are
subject to the policies in other parts of this chapter.
When a policy in another part of this chapter is incon-
sistent with a policy in this part, this Part 12 shall take
precedence for the acquisition of commercial items.
d. The definition of commercial item in section 2.101 uses
the phrase “purposes other than governmental purpos-
es.” These purposes are those that are not unique to a
government.
e. This part shall
not apply to the acquisition of commercial
items—
1. A
t or below the micro-purc
hase threshold;
2. U
sing the Standard Form 44 (see 13.306);
3. Using the imprest fund (see 13.305);
4. Using the Government wide commercial purchase
card; or
5. Dir
ectly from another Federal agency.
f.1.Contracting officers may treat any acquisition of sup-
plies or services that, as determined by the head of the
agency, are to be used to facilitate defense against or re-
covery from nuclear, biological, chemical, or radiological
attack, as an acquisition of commercial items.
2. A contract in an amount greater than $16 million that
is awarded on a sole source basis for an item or ser-
vice treated as a commercial item under paragraph (f)
(1) of this section but does not meet the definition of a
commercial item as defined at FAR 2.101 sha
ll not be
exempt from—
i. Co
st accounting standards (see Subpart 30.2); or
ii. Cost o
r pricing data requirements (see 15.403).
g.1. In ac
cordance with section 1431 of the National Defense
Authoriz
ation Act for Fiscal Year 2004 (Public Law 108-
136) (41 U.S.C. 437), the contracting officer also may use
Part 12 for any acquisition for services that does not meet
the definition of commercial item in FAR 2.101, if the
contract or task order—
i. Is entered int
o on or before November 24, 2013;
ii. Has a value of $27 million or less;
iii. Meets the definition of performance-based acquisi-
tion at FAR 2.101;
iv. Uses a quality assurance surveillance plan;
v. Includes performance incentives where appropriate;
vi. Specifies a firm-fixed price for specific tasks to be
performed or outcomes to be achieved; and
vii.Is
awarded to an entity that provides similar services
to the general public under terms and conditions simi-
lar to those in the contract or task order.
2. In exercising the authority specified in paragraph (g)(1)
of this se
ction, the contracting officer may tailor para-
graph (a) of the cla
use at FAR 52.212-4 as may be neces-
sary to ensure the contract’s remedies adequately protect
the Government’s interests.
12.103 Commercially available off-the-shelf (COTS)
items.
COTS items are defined in 2.101. Unless indicated otherwise,
all of the policies that apply to commercial items also apply to
COTS. Section 12.505 lists the laws that are not applicable to
COTS (in addition to 12.503 and 12.504); the components test
of the Buy American Act, and the two recovered materials cer-
tifications in Subpart 23.4, do not apply to COTS.
Also:
12.211 Technical data.
Except as provided by agency-specific statutes, the Govern-
