8.406-3
Remedies for nonconformance
Ordering activities must take prompt, appropriate action—including possible termination—when contractors fail to deliver conforming supplies or services under FSS orders.
Overview
FAR 8.406-3 outlines the remedies available to ordering activities when a contractor delivers supplies or services that do not conform to order requirements under a Federal Supply Schedule (FSS) contract. It provides guidance on actions to take when nonconformance occurs, including referencing the inspection and acceptance clauses and procedures for order termination or modification. The section ensures that agencies have clear procedures to address contractor performance issues and maintain contract integrity.
Key Rules
- Nonconforming Deliveries
- If supplies or services do not meet order requirements, the ordering activity must act according to the inspection and acceptance clause of the contract and any order-specific supplements.
- Failure to Perform or Correct
- If the contractor fails to perform or does not take corrective action, the ordering activity may terminate the order for cause or modify the order with a new delivery date (with consideration, if appropriate). Termination must follow the procedures in FAR 8.406-4.
Responsibilities
- Contracting Officers: Must enforce inspection and acceptance clauses, determine appropriate remedies, and follow proper procedures for termination or modification.
- Contractors: Must deliver conforming supplies/services and take corrective action if notified of nonconformance.
- Agencies: Must document actions taken and ensure compliance with FAR procedures.
Practical Implications
- This section exists to protect the government’s interests when contractors fail to meet order requirements.
- It impacts daily contract administration by providing a framework for addressing nonconformance and ensuring accountability.
- Common pitfalls include failing to document nonconformance, not following proper termination procedures, or neglecting to obtain consideration for delivery modifications.