Inspection of Research and Development-Fixed-Price
Contractors must maintain an acceptable inspection system and remain responsible for correcting or replacing nonconforming R&D work under fixed-price contracts, even after Government inspection.
Overview
FAR 52.246-7, "Inspection of Research and Development-Fixed-Price," establishes the requirements for inspection and acceptance of work under fixed-price research and development (R&D) contracts. The clause mandates that contractors maintain an inspection system acceptable to the Government, keep complete inspection records, and provide access to these records. The Government retains broad rights to inspect and test work at any time and place during contract performance, including contractor and subcontractor premises. Contractors must provide reasonable facilities and assistance for Government inspections at no additional cost. The Government is responsible for timely acceptance or rejection of work, but failure to inspect does not relieve the contractor of responsibility for nonconforming work. The clause outlines remedies for nonconforming work, including correction, replacement, price reduction, or repayment, and specifies that acceptance is generally conclusive except in cases of latent defects, fraud, or gross mistakes.