Fixed-price research and development contracts
Include the inspection clause 52.246-7 in fixed-price R&D contracts over the simplified acquisition threshold to ensure proper Government inspection of deliverables.
Overview
FAR 46.307 provides guidance on the use of the inspection clause for fixed-price research and development (R&D) contracts. It directs contracting officers to include the clause at 52.246-7, "Inspection of Research and Development—Fixed-Price," in solicitations and contracts where the main deliverables are end items (not just designs, drawings, or reports), the contract is fixed-price, and the value exceeds the simplified acquisition threshold. The clause ensures that the Government can inspect and accept R&D deliverables according to contract requirements. If the contract value is at or below the simplified acquisition threshold, the clause may still be used if it serves the Government’s interest. There is flexibility to use an alternative clause (46.309) if the standard clause is impractical.
Key Rules
- Mandatory Clause Inclusion
- Insert clause 52.246-7 in fixed-price R&D contracts exceeding the simplified acquisition threshold, unless another clause is more suitable.
- Optional Clause Use for Lower-Value Contracts
- The clause may be used for contracts at or below the simplified acquisition threshold if it benefits the Government.
- Alternative Clause Consideration
- If the standard clause is impractical, consider using the clause prescribed in 46.309.
Responsibilities
- Contracting Officers: Must determine when to include the inspection clause, ensure proper clause selection, and document rationale if deviating.
- Contractors: Must comply with inspection requirements specified in the contract clause.
- Agencies: Oversee proper clause application and ensure contract compliance.
Practical Implications
- Ensures R&D deliverables meet contract requirements through inspection.
- Impacts contract drafting and compliance for both contracting officers and contractors.
- Common issues include incorrect clause selection or omission, leading to disputes over inspection rights and acceptance criteria.