Quality Assurance

Overview

FAR Part 46 prescribes the policies and procedures used by the Government to ensure that supplies and services conform to the contract’s quality, quantity, and technical requirements. It defines the framework for inspection, acceptance, and warranties, emphasizing that while the Government performs quality assurance, the primary responsibility for quality control rests with the contractor.

Key Rules

• Contractor Responsibility: The contractor is responsible for performing all inspections and tests required by the contract and tendering only conforming supplies or services to the Government.
• Government Quality Assurance (GQA): The Government performs GQA (at source or destination) before acceptance to determine if the contractor has fulfilled their obligations, but this does not relieve the contractor of their responsibilities.
• Nonconformance Policy: Agencies must generally reject nonconforming supplies or services. However, "Conditional Acceptance" may be used if the contractor is required to correct the deficiencies by a specific date.
• Commercial Products/Services: For commercial acquisitions, the Government relies primarily on the contractor’s existing quality assurance systems and customary market practices rather than unique Government inspections.
• Four Categories of Quality Requirements:
  1. Commercial: Reliance on contractor systems.
  2. Government Reliance: Used for contracts at or below the Simplified Acquisition Threshold (SAT).
  3. Standard Inspection: Basic clauses for standard items.
  4. Higher-Level Requirements: Used for complex or critical items (e.g., ISO 9001, AS9100).
• Counterfeit Items: The regulation includes specific definitions and reporting requirements for "suspect counterfeit" and "counterfeit" items to prevent hazardous or unauthorized parts from entering the supply chain.

Responsibilities

• Contracting Officer (CO):
  • Includes appropriate quality requirements in solicitations and contracts.
  • Coordinates with technical activities to define specifications and Quality Assurance Surveillance Plans (QASP).
  • Determines the significance of nonconformances and manages the acceptance process.
• Contract Administration Office (CAO):
  • Develops and applies procedures to verify contractor performance.
  • Maintains detailed performance records (number of observations, types of defects).
  • Reports design or technical defects back to the contracting office.
• Technical Activity (Program Manager/Engineer):
  • Prescribes the specific technical requirements, testing standards, and quality control essential for the item or service.
• Contractor:
  • Controls the quality of manufacturing and services.
  • Ensures subcontractors and vendors have acceptable quality control systems.
  • Maintains substantiating evidence (records) of conformance to provide to the Government upon request.

Practical Implications

• Documentation is Critical: Contractors must maintain "substantiating evidence" of inspections. In a dispute or an audit, the lack of quality records can lead to the rejection of work or a determination of non-compliance, even if the end product appears functional.
• Cost of Quality: Higher-level quality standards (like AS9100 for aerospace) significantly increase overhead costs. Contractors must carefully review Subpart 46.3 to understand which clause is being invoked, as it dictates the rigor of the inspection system they must fund and maintain.
• Risk Mitigation: The "Reporting Nonconforming Items" clause (52.246-26) creates a mandatory reporting chain for critical items. This means contractors may be legally required to report their own or their suppliers' failures into centralized databases (like GIDEP), which can impact future past performance ratings.
• Source vs. Destination: If a contract specifies "Source Inspection," a Government representative must inspect the item at the contractor’s facility before it ships. This requires logistical coordination and can cause delivery delays if the Government inspector is unavailable.