46.202-2 Government reliance on inspection by contractor
Source: FAR 46.202-2 on acquisition.gov
For contracts at or below the simplified acquisition threshold, the Government generally relies on the contractor's inspection and testing, unless specific risks justify Government inspection.
Overview
FAR 46.202-2 establishes the general rule that, for contracts at or below the simplified acquisition threshold, the Government typically relies on the contractor to perform all necessary inspection and testing to ensure supplies or services meet contract quality requirements before delivery. However, exceptions exist if the contracting officer determines that Government inspection is necessary, based on factors such as the nature of the items, potential losses from defects, likelihood of correcting defects, and the cost of Government inspection. This section guides contracting officers in deciding when to rely on contractor inspection versus conducting their own.
Key Rules
- Default Reliance on Contractor Inspection
- For acquisitions at or below the simplified acquisition threshold, contractors are responsible for all inspection and testing to ensure compliance before offering supplies or services to the Government.
- Exceptions to Reliance
- The Government may conduct its own inspection if the contracting officer determines it is necessary, considering the nature of the supplies/services, potential losses, likelihood of correction, and inspection costs.
Responsibilities
- Contracting Officers: Must determine whether to rely on contractor inspection or require Government inspection, documenting their rationale based on specified factors.
- Contractors: Must perform all required inspections and tests to ensure compliance before delivery unless otherwise directed.
- Agencies: Should provide oversight to ensure contracting officers apply these rules appropriately.
Practical Implications
- This section streamlines quality assurance for lower-value contracts, reducing Government oversight where risk is low.
- Contractors must have robust internal inspection processes for contracts at or below the simplified acquisition threshold.
- Contracting officers must carefully assess risk and document decisions when deviating from the default reliance on contractor inspection.
(a) Except as specified in (b) of this section, the Government shall rely on the contractor to accomplish all inspection and testing needed to ensure that supplies or services acquired at or below the simplified acquisition threshold conform to contract quality requirements before they are tendered to the Government (see 46.301).
(b) The Government shall not rely on inspection by the contractor if the contracting officer determines that the Government has a need to test the supplies or services in advance of their tender for acceptance, or to pass judgment upon the adequacy of the contractor’s internal work processes. In making the determination, the contracting officer shall consider-
(1) The nature of the supplies and services being purchased and their intended use;
(2) The potential losses in the event of defects;
(3) The likelihood of uncontested replacement or correction of defective work; and
(4) The cost of detailed Government inspection.