52.234-1 Industrial Resources Developed Under Title III, Defense Production Act
Source: FAR 52.234-1 on acquisition.gov
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.
As prescribed at 34.104 , insert the following clause:
Industrial Resources Developed Under Title III Defense Production Act (Sept 2016)
(a) Definitions. "Title III industrial resource" means materials, services, processes, or manufacturing equipment (including the processes, technologies, and ancillary services for the use of such equipment) established or maintained under the authority of Title III, Defense Production Act (50 U.S.C. App.2091-2093).
Title III project contractor means a contractor that has received assistance for the development or manufacture of an industrial resource under Title III of Defense Production Act (50 U.S.C. App.2091-2093).
(b) The Contractor shall refer any request from a Title III project contractor for testing and qualification of a Title III industrial resource to the Contracting Officer.
(c) Upon the direction of the Contracting Officer, the Contractor shall test Title III industrial resources for qualification. The Contractor shall provide the test results to the Defense Production Act Office, Title III Program, located at Wright Patterson Air Force Base, Ohio 45433-7739.
(d) When the Contracting Officer modifies the contract to direct testing pursuant to this clause, the Government will provide the Title III industrial resource to be tested and will make an equitable adjustment in the contract for the costs of testing and qualification of the Title III industrial resource.
(e) The Contractor agrees to insert the substance of this clause, including paragraph (e), in every subcontract issued in performance of this contract.
(End of clause)