Industrial Resources Developed Under Title III, Defense Production Act
Contractors must refer all Title III industrial resource testing requests to the Contracting Officer and follow strict procedures for testing, reporting, and subcontract flowdown.
Overview
FAR 52.234-1 requires contractors to follow specific procedures when dealing with industrial resources developed under Title III of the Defense Production Act. This clause ensures that any requests from Title III project contractors for testing and qualification of such resources are properly referred to the Contracting Officer, and that testing is conducted only upon the Contracting Officer’s direction. The Government provides the resource to be tested and compensates the contractor for related costs. Additionally, contractors must flow down this clause to all subcontracts under the contract.
Key Rules
- Referral of Requests
- Contractors must refer any requests from Title III project contractors for testing/qualification of Title III industrial resources to the Contracting Officer.
- Testing Upon Direction
- Contractors only conduct testing when directed by the Contracting Officer and must send results to the Defense Production Act Office.
- Government-Provided Resources and Equitable Adjustment
- The Government supplies the resource for testing and adjusts the contract for testing costs.
- Flowdown Requirement
- Contractors must include this clause in all subcontracts under the contract.
Responsibilities
- Contracting Officers: Direct testing, provide resources, and modify contracts as needed.
- Contractors: Refer requests, conduct testing as directed, submit results, and flow down the clause to subcontractors.
- Agencies: Oversee compliance and ensure proper reporting to the Defense Production Act Office.
Practical Implications
- Ensures government oversight and control over the testing and qualification of critical industrial resources.
- Contractors must not act independently on testing requests and must follow strict referral and reporting procedures.
- Failure to flow down the clause or follow procedures can result in noncompliance and contractual issues.