Glossary term
Commercial Product or Service
An item customarily sold to the general public, procured under streamlined FAR Part 12 procedures.
When an agency determines a requirement can be met with a commercial product or service, FAR Part 12 applies: fewer clauses, commercial terms, no cost-accounting standards, and no certified cost or pricing data. This is materially easier for a small business than a non-commercial acquisition, so it is worth arguing for commerciality during market research when the facts support it.
Categories
- acquisition
Related terms
- FAR (Federal Acquisition Regulation)The primary regulation governing federal executive-agency purchasing — codified at 48 CFR Chapter 1.
- Firm-Fixed-Price (FFP)A contract type where the price is set at award and does not change regardless of the contractor's actual costs.
- Market ResearchThe FAR-required process by which agencies determine whether commercial items and capable sources exist before soliciting.