34.102
Policy
The Government must pay for all required testing and qualification of industrial resources developed with Title III Defense Production Act assistance, not the contractor.
Overview
- FAR 34.102 establishes that the Government is responsible for paying for any testing and qualification required for the use or incorporation of industrial resources manufactured or developed with assistance under Title III of the Defense Production Act of 1950. This policy is mandated by Section 126 of Public Law 102-558 and ensures that contractors are not financially burdened for these specific testing and qualification activities when the resources are developed with Title III assistance.
Key Rules
- Government Payment for Testing and Qualification
- The Government must pay for all testing and qualification costs associated with industrial resources developed or manufactured with Title III assistance.
- Applicability to Title III Projects
- This policy applies only to resources developed or manufactured with assistance under Title III of the Defense Production Act.
Responsibilities
- Contracting Officers: Ensure contracts include provisions for Government payment of required testing and qualification for applicable resources.
- Contractors: Identify and document any required testing and qualification for Title III-assisted resources and coordinate with the Government for payment.
- Agencies: Oversee compliance with the policy and ensure funding is available for required testing and qualification.
Practical Implications
- This policy prevents contractors from incurring out-of-pocket costs for required testing and qualification of Title III-assisted resources, encouraging participation in such programs.
- Contracting professionals must be vigilant in identifying when this policy applies and ensure proper contract language and funding mechanisms are in place.
- Failure to comply could result in disputes or delays in resource qualification and use.