48 CFR § 12.209 - 12.209 Determination of price reasonableness.
---
identifier: "/us/cfr/t48/s12.209"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 12.209 - 12.209 Determination of price reasonableness."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "12.209"
section_name: "12.209 Determination of price reasonableness."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "B"
subchapter_name: "ACQUISITION PLANNING"
part_number: "12"
part_name: "ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113."
regulatory_source: "60 FR 48241, Sept. 18, 1995, unless otherwise noted."
cfr_part: "12"
---
# 12.209 12.209 Determination of price reasonableness.
While the contracting officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or 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.
[66 FR 53484, Oct. 22, 2001, as amended at 86 FR 61022, Nov. 4, 2021]