46.305
Cost-reimbursement service contracts
Always include FAR clause 52.246-5 in cost-reimbursement service contracts to ensure proper inspection rights and quality assurance.
Overview
FAR 46.305 requires contracting officers to include the clause at 52.246-5, Inspection of Services—Cost Reimbursement, in solicitations and contracts for services (or supplies involving services) when a cost-reimbursement contract is planned. This clause establishes the government's right to inspect and evaluate the services provided under such contracts, ensuring that performance meets contract requirements. The regulation ensures that quality assurance provisions are consistently applied to cost-reimbursement service contracts, protecting government interests and clarifying contractor obligations regarding inspection and acceptance of services.
Key Rules
- Clause Inclusion Requirement
- The contracting officer must insert FAR 52.246-5 in all applicable solicitations and contracts.
- Applicability to Cost-Reimbursement Contracts
- Applies specifically to service contracts (and supply contracts involving services) using a cost-reimbursement structure.
Responsibilities
- Contracting Officers: Must ensure the correct inspection clause is included in all relevant solicitations and contracts.
- Contractors: Must comply with the inspection and quality requirements outlined in FAR 52.246-5.
- Agencies: Must oversee compliance with clause inclusion and ensure contract quality assurance.
Practical Implications
- This section ensures that the government retains the right to inspect services under cost-reimbursement contracts, which is critical for quality assurance and contract performance.
- Contractors should be aware that their services will be subject to inspection and must meet contract standards.
- Omitting the required clause can lead to compliance issues and disputes over service quality or acceptance.