46.306
Time-and-material and labor-hour contracts
Always include the 52.246-6 inspection clause (and Alternate I if inspection is at the contractor’s plant) in all time-and-material and labor-hour contracts to ensure proper inspection and acceptance procedures.
Overview
FAR 46.306 requires contracting officers to include the clause at 52.246-6, Inspection—Time-and-Material and Labor-Hour, in all solicitations and contracts that use time-and-material (T&M) or labor-hour (LH) contract types. This clause establishes the inspection and acceptance procedures for deliverables under these contract types. If inspection and acceptance will occur at the contractor’s plant, the clause must be used with its Alternate I, which tailors the inspection requirements to that scenario. This ensures that both the government and contractors understand their respective inspection obligations and acceptance criteria for T&M and LH contracts.
Key Rules
- Clause Inclusion Requirement
- The 52.246-6 clause must be inserted in all T&M and LH solicitations and contracts.
- Use of Alternate I
- If inspection and acceptance are to be performed at the contractor’s plant, the clause must be used with Alternate I.
Responsibilities
- Contracting Officers: Must ensure the correct inspection clause (and Alternate I, if applicable) is included in the contract documents.
- Contractors: Must comply with the inspection and acceptance procedures specified in the clause.
- Agencies: Must oversee that proper clauses are used and that inspection/acceptance procedures are followed.
Practical Implications
- This section ensures that inspection and acceptance procedures are clearly defined for T&M and LH contracts, reducing ambiguity and potential disputes.
- Contractors should review the clause to understand their inspection obligations and prepare for government oversight, especially if work is performed at their facility.
- Failure to include the correct clause or Alternate I can result in compliance issues and contract disputes.