46.405 Subcontracts
Source: FAR 46.405 on acquisition.gov
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.
(a) Government contract quality assurance on subcontracted supplies or services shall be performed only when required in the Government’s interest. The primary purpose is to assist the contract administration office cognizant of the prime contractor’s plant in determining the conformance of subcontracted supplies or services with contract requirements or to satisfy one or more of the factors included in (b) of this section. It does not relieve the prime contractor of any responsibilities under the contract. When appropriate, the prime contractor shall be requested to arrange for timely Government access to the subcontractor facility.
(b) The Government shall perform quality assurance at the subcontract level when-
(1) The item is to be shipped from the subcontractor’s plant to the using activity and inspection at source is required;
(2) The conditions for quality assurance at source are applicable (see 46.402);
(3) The contract specifies that certain quality assurance functions, which can be performed only at the subcontractor’s plant, are to be performed by the Government; or
(4) It is otherwise required by the contract or determined to be in the Government’s interest.
(c) Supplies or services for which certificates, records, reports, or similar evidence of quality are available at the prime contractor’s plant shall not be inspected at the subcontractor’s plant, except occasionally to verify this evidence or when required under (b) of this section.
(d) All oral and written statements and contract terms and conditions relating to Government quality assurance actions at the subcontract level shall be worded so as not to-
(1) Affect the contractual relationship between the prime contractor and the Government, or between the prime contractor and the subcontractor;
(2) Establish a contractual relationship between the Government and the subcontractor; or
(3) Constitute a waiver of the Government’s right to accept or reject the supplies or services.