46.403 Government contract quality assurance at destination
Source: FAR 46.403 on acquisition.gov
FAR 46.403 defines when government contract quality assurance should occur at the destination, focusing on inspection and outlining specific scenarios where this applies.
Overview
FAR 46.403 outlines when and how government contract quality assurance (QA) should be performed at the destination (i.e., the place where supplies or services are delivered or performed). The regulation generally limits QA at destination to inspection activities, specifying circumstances where this is appropriate, such as for off-the-shelf items, when testing equipment is only available at the destination, for perishable goods, brand name resale products, products under certain federal agency control, service contracts, or when it is otherwise in the Government’s interest. It also restricts overseas inspection of U.S.-shipped supplies to unusual cases, requiring advance determination and arrangements by the contracting officer.
Key Rules
- Destination Inspection Circumstances
- Inspection at destination is appropriate for off-the-shelf items, when testing equipment is only at destination, for perishable subsistence supplies, brand name resale products, products under NIH or FDA control, service contracts performed at destination, or when determined to be in the Government’s interest.
- Overseas Inspection Restrictions
- Overseas inspection of U.S.-shipped supplies is generally not required unless unusual circumstances exist and the contracting officer makes advance arrangements.
Responsibilities
- Contracting Officers: Must determine and document when destination inspection is appropriate, make arrangements for overseas inspections if necessary, and ensure compliance with the outlined circumstances.
- Contractors: Must facilitate inspection at destination when required and provide access to supplies or services for government QA personnel.
- Agencies: Oversee compliance with QA requirements and ensure proper documentation and arrangements for inspections, especially for overseas shipments.
Practical Implications
- This section clarifies when destination inspection is suitable, helping avoid unnecessary QA steps and focusing resources where most effective. Contractors should be prepared for inspection at delivery points under the specified circumstances. Failure to comply with inspection requirements or to coordinate for overseas inspections when needed can result in delays or acceptance issues.
(a) Government contract quality assurance that can be performed at destination is normally limited to inspection of the supplies or services. Inspection shall be performed at destination under the following circumstances-
(1) Supplies are purchased off-the-shelf and require no technical inspection;
(2) Necessary testing equipment is located only at destination;
(3) Perishable subsistence supplies purchased within the United States, except that those supplies destined for overseas shipment will normally be inspected for condition and quantity at points of embarkation;
(4) Brand name products purchased for authorized resale through commissaries or similar facilities (however, supplies destined for direct overseas shipment may be accepted by the contracting officer or an authorized representative on the basis of a tally sheet evidencing receipt of shipment signed by the port transportation officer or other designated official at the transshipment point);
(5) The products being purchased are processed under direct control of the National Institutes of Health or the Food and Drug Administration of the Department of Health and Human Services;
(6) The contract is for services performed at destination; or
(7) It is determined for other reasons to be in the Government’s interest.
(b) Overseas inspection of supplies shipped from the United States shall not be required except in unusual circumstances, and then only when the contracting officer determines in advance that inspection can be performed or makes necessary arrangements for its performance.