FAR 12.209 — Determination of price reasonableness
Regulatory text. Not legal advice.
While the contracting officer must establish price reasonableness in accordance with FAR 13.106-3, FAR 14.408-2, or FAR Subpart 15.4, as applicable, the contracting officer should be aware of customary commercial terms and conditions when pricing commercial products and commercial services. Commercial product and commercial service prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The contracting officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need.
Citation history: [66 FR 53484, Oct. 22, 2001, as amended at 86 FR 61022, Nov. 4, 2021]
Source: eCFR • Pulled 2026-04-16