27.404-6 Inspection of data at the contractor’s facility
Source: FAR 27.404-6 on acquisition.gov
Including clause 52.227-14 with Alternate V allows government inspection of certain data at the contractor’s facility for up to three years after contract completion to verify data rights or performance.
Overview
FAR 27.404-6 outlines the procedures and rights related to the inspection of data at a contractor’s facility. By incorporating clause 52.227-14 with Alternate V into a contract, contracting officers and their designees (including certain nongovernmental personnel) are granted the right to inspect data at the contractor’s site. This inspection right applies to data withheld or withholdable under the limited or restricted rights provisions and is intended to verify the contractor’s assertions about data rights or to evaluate contract performance. The right to inspect can be exercised for up to three years after acceptance of all deliverables. The contract may specify certain data items exempt from inspection. If a contractor identifies a potential conflict of interest with a designated inspector, the contracting officer must appoint an alternate representative.
Key Rules
- Incorporation of Inspection Rights
- Use clause 52.227-14 with Alternate V to grant inspection rights at the contractor’s facility.
- Scope of Inspection
- Applies to data withheld or withholdable under limited/restricted rights provisions.
- Inspection Personnel
- Contracting officers, their designees, and certain nongovernmental personnel may conduct inspections.
- Timeframe for Inspection
- Inspection rights last up to three years after acceptance of all contract deliverables.
- Exemptions and Conflicts of Interest
- Contracts may exempt specific data from inspection; alternate representatives must be designated if conflicts of interest arise.
Responsibilities
- Contracting Officers: Ensure the correct clause and Alternate V are included, designate appropriate inspectors, and address conflicts of interest.
- Contractors: Allow inspection of applicable data, notify the contracting officer of any conflicts of interest, and comply with inspection requirements.
- Agencies: May adopt Alternate V for general use and oversee compliance.
Practical Implications
- This section ensures government access to verify data rights and contract performance, protecting government interests in intellectual property.
- Contractors must be prepared for possible inspections and maintain clear records of data rights assertions.
- Failure to comply or improper handling of conflicts of interest can lead to disputes or contract issues.
Contracting officers may obtain the right to inspect data at the contractor’s facility by use of the clause at 52.227-14 with its Alternate V, which adds paragraph (j) to provide that right. Agencies may also adopt Alternate V for general use. The data subject to inspection may be data withheld or withholdable under paragraph (g)(1) of the clause. Inspection may be made by the contracting officer or designee (including nongovernmental personnel under the same conditions as the contracting officer) for the purpose of verifying a contractor’s assertion regarding the limited rights or restricted rights status of the data, or for evaluating work performance under the contract. This right may be exercised up to 3 years after acceptance of all items to be delivered under the contract. The contract may specify data items that are not subject to inspection under paragraph (j) of the Alternate. If the contractor demonstrates to the contracting officer that there would be a possible conflict of interest if inspection were made by a particular representative, the contracting officer shall designate an alternate representative.