46.303
Cost-reimbursement supply contracts
Always include the 52.246-3 inspection clause in cost-reimbursement supply contracts to ensure clear inspection requirements and compliance.
Overview
FAR 46.303 requires contracting officers to include the clause at 52.246-3, Inspection of Supplies—Cost-Reimbursement, in solicitations and contracts for supplies (or services involving supplies) when a cost-reimbursement contract is planned. This ensures that inspection requirements and responsibilities are clearly defined for both parties in these types of contracts, promoting accountability and quality assurance throughout contract performance.
Key Rules
- Clause Inclusion Requirement
- The clause at 52.246-3 must be inserted in all solicitations and contracts for supplies (or services involving supplies) under cost-reimbursement arrangements.
- Applicability to Cost-Reimbursement Contracts
- This requirement applies specifically to cost-reimbursement contracts, not to fixed-price or other contract types.
Responsibilities
- Contracting Officers: Must ensure the correct inspection clause is included in all relevant solicitations and contracts.
- Contractors: Must comply with the inspection requirements outlined in clause 52.246-3.
- Agencies: Should oversee compliance with clause inclusion and inspection procedures.
Practical Implications
- This section ensures that inspection procedures are contractually enforceable in cost-reimbursement supply contracts, reducing ambiguity and disputes.
- Contractors should be aware that inspection obligations will be detailed in the contract and must be followed to avoid performance issues or payment delays.
- Omitting the required clause can lead to compliance failures and potential contract disputes.