Many federal contractors have heard about the revamping of the Federal Acquisition Regulation. Variously called FAR 2.0, the Revolutionary FAR Overhaul, or simply RFO, this project has been undertaken by the Office of Federal Procurement Policy (OFPP) and the Federal Acquisition Regulatory Council (FAR Council). An executive order got the ball rolling, setting forth the mandate to create FAR 2.0 by October 12, 2025. We wrote about it in our earlier post, and described it as two parallel tracks. Track 1 involves a rewrite into “plain language” and removing non-statutory and unnecessary content. Track 2 involves the development of the non-mandatory guidelines to guide procurement officials.
Our earlier posts regarding the RFO can be found here: Executive Order, Overview of FAR 2.0, FAR Part 6, FAR Part 19.
The revision of the FAR sections has continued over the past few months, with additional proposed revisions being released through September 2025. In this post, we’ll review one proposed revision that seems to make some significant changes to the language: Part 12 – Acquisition of Commercial Products and Commercial Services.
Part 12 – Acquisition of Commercial Products and Commercial Services
Part 12 covers streamlined procedures for “acquisition of commercial products, including commercially available off-the-shelf (COTS) items (a subset of commercial products), and commercial services.” The proposed language was issued on August 14, 2025. FAR guidance suggests that commercial procurement looks at the following distinction: “Minor modifications to products typically qualify as commercial when changes don’t significantly alter how the item normally functions or its essential characteristics outside of government use. Major customization to products typically eliminates commercial status when substantial changes fundamentally alter core functionality or essential characteristics.” This is actually based in FAR 2.101, the definitions section.
This Part has been highly consolidated and reorganized. As one part of this change, the simplified procedures for commercial acquisitions have been moved from Part 13 to Part 12 to address simplified procedures for acquisitions up to $9 million. (The earlier $7.5 million cap on simplified procedures was updated to $9 million based on recent increases in FAR thresholds that went into effect October 1). In contrast, Part 13 will focus on Simplified Procedures for Noncommercial Acquisitions. Section 12.103, Small business, says to “See part 19 for small business set-aside requirements.”
New section 12.201-1, Simplified Procedures, will require a a request for quotations (RFQ) followed by a purchase order. Only contractor acceptance of the purchase order will create a binding contract. “For acquisitions at or below the SAT, the contracting officer may choose to solicit quotations directly from suppliers.” This seems to allow solicitations to not be posted to SAM if below the SAT (currently at $350,000). With respect to timing, agencies must “[e]xercise good business judgment in deciding whether or not to accept a quotation or offer received after the due date or time (see 52.212-1(c)).” FAR 12.203(c). That clause in turn states, that “a late modification of an otherwise successful offer that makes its terms more favorable to the Government will be considered at any time it is received and may be accepted.” FAR 52.212-1(c).
New Section 12.201-1(d), Innovation, encourages “additional innovative approaches to the maximum extent practicable when soliciting quotations” with the goals of promoting efficiency and use of small businesses. Solicitations over $9 million should incorporate Part 15 for requests for proposals (RFPs) or Part 14 for invitations for bids (IFBs).
Section 12.203(c)(2) make clear that the evaluation procedures for quotations under this section are not subject to part 15 or 14. That means, for instance, that contracting officers “are not required to have evaluation plans, score quotations, or establish a competitive range before communicating with quoters or soliciting revised quotations.”Contracting officers are not required to have evaluation plans, score quotations, or establish a competitive range before communicating with quoters or soliciting revised quotations.”
Here are a few other changes:
- The new definition clarifies that commercial services can include construction.
- Two so-called “master” clauses have been removed, because the majority of references are no longer required, while the remaining references were retained through other means: FAR 52.212-3, Offeror Representations and Certifications—Commercial Products and Commercial Services, and FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Products and Commercial Services.
- Overall, there will be a 30% reduction in length, with over 40 clauses and provisions no longer required.
Conclusion
This updated Part 12 represents some key changes for federal contractors to both the structure and substance of the FAR. We will stay tuned to the RFO revisions as they are rolled out and summarize them on SmallGovCon. Check back here for updates.
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