FAR 52.246-3 Inspection of Supplies-Cost-Reimbursement. Basic (May 2001) (Current)

As prescribed in 46.303, the contracting officer shall insert the clause at 52.246-3, Inspection of Supplies—Cost-Reimbursement, in solicitations and contracts for supplies, or services that involve the furnishing of supplies, when a cost-reimbursement contract is contemplated.

Inspection of Supplies-Cost-Reimbursement (May 2001)

      (a) Definitions.As used in this clause-

      Contractor’s managerial personnel means any of the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of-

           (1) All or substantially all of the Contractor’s business;

           (2) All or substantially all of the Contractor’s operation at a plant or separate location where the contract is being performed; or

           (3) A separate and complete major industrial operation connected with performing this contract.

           Supplies includes but is not limited to raw materials, components, intermediate assemblies, end products, lots of supplies, and, when the contract does not include the Warranty of Data clause, data.

      (b) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the supplies, fabricating methods, and special tooling under this contract. Complete records of all inspection work performed by the Contractor shall be maintained and made available to the Government during contract performance and for as long afterwards as the contract requires.

      (c) The Government has the right to inspect and test the contract supplies, to the extent practicable at all places and times, including the period of manufacture, and in any event before acceptance. The Government may also inspect the plant or plants of the Contractor or any subcontractor engaged in the contract performance. The Government shall perform inspections and tests in a manner that will not unduly delay the work.

      (d) If the Government performs inspection or test on the premises of the Contractor or a subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties.

      (e) Unless otherwise specified in the contract, the Government shall accept supplies as promptly as practicable after delivery, and supplies shall be deemed accepted 60 days after delivery, unless accepted earlier.

      (f) At any time during contract performance, but no later than 6 months (or such other time as may be specified in the contract) after acceptance of the supplies to be delivered under the contract, the Government may require the Contractor to replace or correct any supplies that are nonconforming at time of delivery. Supplies are nonconforming when they are defective in material or workmanship or are otherwise not in conformity with contract requirements. Except as otherwise provided in paragraph (h) of this clause, the cost of replacement or correction shall be included in allowable cost, determined as provided in the Allowable Cost and Payment clause, but no additional fee shall be paid. The Contractor shall not tender for acceptance supplies required to be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective action taken.

      (g) (1) If the Contractor fails to proceed with reasonable promptness to perform required replacement or correction, the Government may-

                (i) By contract or otherwise, perform the replacement or correction and charge to the Contractor any increased cost or make an equitable reduction in any fixed fee paid or payable under the contract;

                (ii) Require delivery of undelivered supplies at an equitable reduction in any fixed fee paid or payable under the contract; or

                (iii) Terminate the contract for default.

           (2) Failure to agree on the amount of increased cost to be charged to the Contractor or to the reduction in the fixed fee shall be a dispute.

      (h) Notwithstanding paragraphs (f) and (g) of this clause, the Government may at any time require the Contractor to correct or replace, without cost to the Government, nonconforming supplies, if the nonconformances are due to-

           (1) Fraud, lack of good faith, or willful misconduct on the part of the Contractor’s managerial personnel; or

           (2) The conduct of one or more of the Contractor’s employees selected or retained by the Contractor after any of the Contractor’s managerial personnel has reasonable grounds to believe that the employee is habitually careless or unqualified.

      (i) This clause applies in the same manner to corrected or replacement supplies as to supplies originally delivered.

      (j) The Contractor shall have no obligation or liability under this contract to replace supplies that were nonconforming at the time of delivery, except as provided in this clause or as may be otherwise provided in the contract.

      (k) Except as otherwise specified in the contract, the Contractor’s obligation to correct or replace Government-furnished property shall be governed by the clause pertaining to Government property.

(End of clause)


NONE, but the Government may also inspect the plant or plants of the Contractor or any subcontractor engaged in the contract performance.

Prime’s Interest;
Services ✖ Time and Materials ✖ FFP ✖ 

52.209-1 Qualification Requirements.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.246-1 Contractor Inspection Requirements.

52.246-11 Higher-Level Contract Quality Requirement.

52.246-12 Inspection of Construction.

52.246-13 Inspection-Dismantling, Demolition, or Removal of Improvements.

52.246-14 Inspection of Transportation.

52.246-15 Certificate of Conformance.

52.246-16 Responsibility for Supplies.

52.246-2 Inspection of Supplies-Fixed-Price.

52.246-4 Inspection of Services-Fixed-Price.

52.246-5 Inspection of Services-Cost-Reimbursement.

52.246-6 Inspection-Time-and-Material and Labor-Hour.

52.246-7 Inspection of Research and Development-Fixed-Price.

52.246-8 Inspection of Research and Development-Cost-Reimbursement.

52.246-9 Inspection of Research and Development (Short Form).

52.247-4 Inspection of Shipping and Receiving Facilities.

52.248-3 Value Engineering-Construction.

52.246-26 Reporting Nonconforming Items.

52.204-26 Covered Telecommunications Equipment or Services-Representation.

52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.

52.204-28 Federal Acquisition Supply Chain Security Act Orders-Federal Supply Schedules, Governmentwide Acquisition Contracts, and Multi-Agency Contracts.

52.204-30 Federal Acquisition Supply Chain Security Act Orders-Prohibition.

52.223-23 Sustainable Products and Services.

252.232-7018 Progress Payments-Multiple Lots.

252.217-7005 Inspection and Manner of Doing Work.

252.228-7005 Mishap Reporting and Investigation Involving Aircraft, Missiles, and Space Launch Vehicles.

252.239-7000 Protection Against Compromising Emanations.

252.215-7015 Program Should-Cost Review.

1852.246-71 Government Contract Quality Assurance.

1852.246-72 Material Inspection and Receiving Report.

1852.246-74 Contractor Counterfeit Electronic Part Detection and Avoidance



5252.246-9503 Significance of Systems Engineering Technical Reviews Required under this Contract (NAVAIR)

3052.217-92 Inspection and manner of doing work (USCG).

3052.217-96 Title (USCG).

3052.217-100 Guarantee (USCG).

5152.236-5900 Electrical and Structural Building Standards for Construction Projects

552.270-9 Inspection—Right of Entry.

552.211-70 Substantial Completion.

552.246-70 Source Inspection by Quality Approved Manufacturer.

552.236-11 Use and Possession Prior to Completion.

552.236-6 Superintendence by the Contractor.

552.236-15 Schedules for Construction Contracts.

552.236-21 Specifications and Drawings for Construction.

552.238-95 Separate Charge for Performance Oriented Packaging (POP).

552.238-96 Separate Charge for Delivery within Consignee's Premises.

552.238-100 Transshipments.

552.238-109 Authentication Supplies and Services.

552.238-110 Commercial Satellite Communication (COMSATCOM) Services.

752.226-70 Trade and Investment Activities and the ‘‘Impact on U.S. Jobs’’ and ‘‘Workers’ Rights.’’

752.231-72 Conference Planning and Required Approval

752.239-71 Information and Communication Technology Accessibility.

970.5204-3 Access to and ownership of records.

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