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Federal Acquisition Regulation (FAR) Reformation

FAR Part 12 – Acquisition of Commercial Products and Commercial Services

The revised FAR Part 12 consolidates six subparts into four: 12.1 (Presolicitation), 12.2 (Solicitation, Evaluation, and Award), 12.3 (Post-Award), and 12.4 (Micro-purchases).

A key substantive change is the relocation of Simplified Acquisition provisions from FAR Part 13 to FAR Part 12. The streamlined procedures apply to procurements up to $7.5 million, with a potential increase to $15 million when the agency head determines that the commercial products or services will be used under certain emergency-related circumstances.

In alignment with revisions to FAR Part 8, Subpart 12.2 requires agencies to procure commercial products or services from a priority source identified in FAR Part 8, such as government-wide acquisition contracts, if such sources meet agency needs.

Additional Notable Changes

The new Section 12.201 (Solicitation Procedures) encourages agencies to employ “additional innovative approaches” when soliciting quotations and issuing purchase orders to:

  • Reduce administrative costs and lead time;
  • Expand opportunities for small businesses;
  • Promote efficiency and economy in contracting; and
  • Avoid unnecessary burdens for agencies and contractors.

Section 12.203 (Evaluation) describes the process of evaluating quotations. To ensure that quotations and offers are “evaluated in an efficient and minimally burdensome fashion,” contracting officers are granted broad discretion to use “good business judgment” in deciding whether to accept untimely quotations and to establish evaluation procedures for quotations.

These changes highlight greater reliance on contracting officer discretion and signal a shift toward broader use of commercial practices and faster procurements.