46.407
Nonconforming supplies or services
Nonconforming supplies or services must be rejected unless acceptance is justified and documented, with corrective actions, contract modifications, and prompt communication required to protect government interests.
Overview
FAR 46.407 outlines the procedures and requirements for handling nonconforming supplies or services in government contracts. The regulation emphasizes that supplies or services not meeting contract requirements should generally be rejected, but allows for exceptions when it is in the Government’s interest. It details the process for correction or replacement, acceptance of nonconforming items, contract modifications, and documentation requirements. The section also addresses the handling of minor versus major nonconformances, the need for prompt and written rejection notices, and special instructions for counterfeit or suspect counterfeit items.
Key Rules
- Rejection of Nonconforming Supplies or Services
- Contracting officers should reject items not meeting contract requirements unless acceptance is justified and authorized.
- Opportunity to Correct or Replace
- Contractors must be given a chance to correct or replace nonconforming items within the delivery schedule, typically at no extra cost to the Government.
- Acceptance of Nonconforming Items
- Acceptance or conditional acceptance is allowed only when justified (e.g., urgency, economy) and must be supported by technical advice, contractor requests, and appropriate contract adjustments.
- Handling Minor Nonconformances
- Minor nonconformances may be accepted or rejected by the contract administration office, unless authority is withheld.
- Contract Modifications and Price Adjustments
- Acceptance of critical or major nonconformances requires contract modification for equitable price reduction or other consideration.
- Prompt and Written Notice of Rejection
- Contractors must be promptly notified of rejection, with written notice required in specific circumstances.
- Counterfeit Items
- Contracting officers must follow agency policy for disposition of counterfeit or suspect counterfeit items.
Responsibilities
- Contracting Officers: Must reject nonconforming items unless justified, provide opportunities for correction, document decisions, issue prompt/written rejection notices, and modify contracts as needed.
- Contractors: Must correct or replace nonconforming items at no extra cost, respond to rejection notices, and comply with instructions for counterfeit items.
- Agencies: Must provide technical advice, support contract administration, and establish policies for counterfeit items.
Practical Implications
- Ensures only supplies/services meeting contract requirements are accepted, protecting government interests.
- Requires clear documentation and communication to avoid implied acceptance.
- Failure to follow procedures can result in payment for nonconforming items or legal disputes over acceptance.