12.401
General
FAR 12.401 ensures that contract terms for commercial products and services can be tailored to reflect customary market practices while maintaining proper contract administration.
Overview
FAR 12.401 outlines the general principles for tailoring contract terms and administering contracts for commercial products and commercial services. It specifically addresses situations where the standard clause at 52.212-4, which governs contract terms and conditions for commercial items, may not align with customary commercial practices in a particular market. The section also provides guidance for managing contracts in areas where 52.212-4's terms differ significantly from other FAR provisions, ensuring that both contracting officers and contractors understand when and how deviations are appropriate and how to handle such contracts administratively.
Key Rules
- Tailoring of 52.212-4 Clause
- Contracting officers may tailor the paragraphs of the 52.212-4 clause if they do not reflect customary commercial practices for the market.
- Administration of Commercial Contracts
- Provides guidance for administering contracts where 52.212-4's terms differ from other FAR clauses, ensuring proper contract management and compliance.
Responsibilities
- Contracting Officers: Must assess whether standard terms align with market practices and tailor clauses as appropriate; ensure proper administration of contracts with tailored terms.
- Contractors: Should be aware of tailored terms and understand how they may differ from standard FAR clauses.
- Agencies: Oversee and support proper application and administration of tailored contract terms.
Practical Implications
- This section exists to promote flexibility in commercial contracting, allowing adaptation to industry norms while maintaining compliance.
- It impacts daily contracting by requiring careful review and possible adjustment of standard clauses.
- Common pitfalls include failing to tailor clauses when necessary or misunderstanding the differences between 52.212-4 and other FAR terms.