Overview
FAR 12.102 establishes the scope and mandatory application of FAR Part 12, prescribing that these policies take precedence over other FAR parts when acquiring commercial products or commercial services. It also identifies specific exemptions to its use and provides special authorities for acquisitions related to defense against various large-scale attacks.
Key Rules
- Mandatory Use: Agencies must use FAR Part 12 for any acquisition meeting the definition of a commercial product or commercial service as defined in FAR 2.101.
- Precedence: In the event of a conflict between FAR Part 12 and any other part of the FAR, Part 12 takes precedence for commercial acquisitions.
- Integration with Other Parts: Part 12 is used in conjunction with the procedures in FAR Parts 13 (Simplified Acquisition), 14 (Sealed Bidding), or 15 (Negotiation).
- Exemptions: FAR Part 12 does not apply to micro-purchases, Standard Form 44 purchases, imprest funds, interagency acquisitions, or when the Governmentwide purchase card is used as the primary method of purchase.
- Special Emergency Authorities: Acquisitions to facilitate defense against cyber, nuclear, biological, chemical, or radiological attacks may be treated as commercial.
- Pricing and Accounting Limits: If an item is "treated as commercial" under emergency authorities but does not meet the actual definition in 2.101, it remains subject to Cost Accounting Standards (CAS) and certified cost or pricing data requirements if the contract is sole-source and exceeds $25 million.
Practical Implications
- Contracting Officers must prioritize commercial-style terms and conditions, as the "precedence" rule prevents government-unique requirements found in other FAR parts from overriding the streamlined commercial framework.
- The $25 million threshold for non-traditional commercial items ensures that while the government can buy emergency supplies quickly, it maintains financial oversight through CAS and truth-in-negotiations requirements for large, sole-source "treated as commercial" awards.