Fixed-price supply contracts
FAR 46.302 requires the Inspection of Supplies-Fixed-Price clause in most fixed-price supply contracts, with specific alternates for certain contract types, ensuring clear inspection requirements.
Overview
FAR 46.302 outlines the requirements for including the Inspection of Supplies-Fixed-Price clause (52.246-2) in fixed-price supply contracts. This section mandates that contracting officers insert this clause in solicitations and contracts for supplies (or services involving supplies) when the contract is expected to exceed the simplified acquisition threshold. The clause may also be included for contracts at or below the threshold if it serves the Government’s interest. Additionally, specific alternates of the clause must be used for fixed-price incentive contracts (Alternate I) and fixed-ceiling-price contracts with retroactive price redetermination (Alternate II). This ensures that inspection and acceptance requirements are clearly defined and tailored to the contract type and value.
Key Rules
- Mandatory Clause Inclusion
- The Inspection of Supplies-Fixed-Price clause (52.246-2) must be included in fixed-price supply contracts exceeding the simplified acquisition threshold.
- Discretionary Clause Inclusion
- The clause may be included in contracts at or below the threshold if it benefits the Government.
- Use of Alternates
- Alternate I is required for fixed-price incentive contracts; Alternate II is required for fixed-ceiling-price contracts with retroactive price redetermination.
Responsibilities
- Contracting Officers: Ensure the correct version of clause 52.246-2 is included based on contract type and value.
- Contractors: Must comply with the inspection and acceptance requirements specified in the clause.
- Agencies: Oversee proper clause usage and ensure compliance with FAR requirements.
Practical Implications
- This section ensures that inspection requirements are consistently applied to fixed-price supply contracts, reducing risk and clarifying expectations.
- Failure to include the correct clause or alternate can lead to disputes or noncompliance.
- Contractors should review solicitations for the presence and version of this clause to understand their inspection obligations.