Subcontracts
Government quality assurance at the subcontractor level is only performed when necessary and does not relieve the prime contractor of responsibility for contract compliance.
Overview
FAR 46.405 addresses the circumstances and procedures for Government contract quality assurance (QA) at the subcontractor level. It clarifies that Government QA on subcontracted supplies or services is only performed when necessary for the Government’s interest, such as ensuring conformance with contract requirements or when specified by the contract. The section emphasizes that the prime contractor remains fully responsible for contract performance, even when Government QA occurs at the subcontractor’s facility. It also outlines when QA at the subcontractor’s plant is required, such as when items are shipped directly to the Government, source inspection is needed, or contract terms dictate. Additionally, it restricts Government QA at the subcontractor’s plant if adequate quality evidence is available at the prime contractor’s facility, except for verification or when otherwise required. Finally, it mandates that all communications and contract terms regarding QA at the subcontract level must not alter contractual relationships or waive the Government’s rights.
Key Rules
- Government QA at Subcontractor Facilities
- Performed only when in the Government’s interest and does not relieve the prime contractor of responsibility.
- When QA is Required at Subcontractor Level
- Required if items ship directly to the Government, source inspection applies, contract specifies, or Government interest dictates.
- Use of Quality Evidence at Prime Contractor
- QA at the subcontractor is limited if sufficient quality evidence exists at the prime contractor’s plant, except for verification or as required.
- Contractual Relationships
- QA actions and communications must not alter or create contractual relationships between the Government and subcontractors, nor waive Government rights.
Responsibilities
- Contracting Officers: Determine when Government QA at the subcontractor level is necessary and ensure proper contract language.
- Contractors: Remain responsible for contract performance and facilitate Government access to subcontractor facilities when required.
- Agencies: Oversee QA activities and ensure compliance with contractual and regulatory requirements.
Practical Implications
- Ensures Government QA at the subcontractor level is targeted and justified, preventing unnecessary oversight.
- Reinforces the prime contractor’s accountability for subcontracted work.
- Prevents confusion or unintended contractual obligations between the Government and subcontractors.
- Common pitfalls include misunderstanding when Government QA is required and improper communication that could affect contractual relationships.