Subpart 12.5
Applicability of Certain Laws to the Acquisition of Commercial Products, Commercial Services and Commercially Available Off-the-Shelf Items
FAR Subpart 12.5 streamlines commercial item acquisitions by exempting them from many government-unique laws, but contracting professionals must carefully determine which requirements still apply.
Overview
FAR Subpart 12.5 outlines which federal laws apply or do not apply to the acquisition of commercial products, commercial services, and commercially available off-the-shelf (COTS) items. Its primary purpose is to streamline the acquisition process for commercial items by exempting these procurements from certain statutes and regulations that typically apply to government contracts. The subpart provides detailed guidance on applicability, procedures, and exceptions, and distinguishes between requirements for prime contracts, subcontracts, and COTS items. Contracting professionals must understand which laws are waived or modified to ensure compliance and efficient procurement.
Key Rules
- Scope and Applicability
- Defines the boundaries of the subpart and clarifies which acquisitions are covered.
- Procedures
- Outlines steps for determining the applicability of laws and regulations to commercial item acquisitions.
- Applicability of Laws to Contracts and Subcontracts
- Specifies which laws apply or are waived for executive agency contracts, subcontracts, and COTS acquisitions.
Responsibilities
- Contracting Officers: Must determine which laws apply to each acquisition and ensure solicitations and contracts reflect the correct requirements.
- Contractors: Must comply with applicable laws and understand exemptions or waivers for commercial and COTS items.
- Agencies: Oversee compliance and ensure proper application of statutory exemptions.
Practical Implications
- This subpart exists to reduce administrative burden and encourage commercial item participation in federal procurement.
- It impacts daily contracting by allowing for more flexible, market-based terms and fewer government-unique requirements.
- Common pitfalls include misapplying exemptions or failing to include required clauses for commercial or COTS acquisitions.