Overview
FAR 46.302 prescribes the use of the "Inspection of Supplies—Fixed-Price" clause, ensuring the government has the right to inspect and test supplies to ensure they meet contract specifications.
Key Rules
- Mandatory Inclusion: The Contracting Officer (CO) must insert clause 52.246-2 in solicitations and contracts for fixed-price supplies (or services involving supplies) when the value is expected to exceed the Simplified Acquisition Threshold (SAT).
- Discretionary Inclusion: For contracts at or below the SAT, the CO may include the clause if it is determined to be in the government's interest.
- Alternate I: Must be used for fixed-price incentive contracts.
- Alternate II: Must be used for fixed-ceiling-price contracts that involve retroactive price redetermination.
Practical Implications
- This section provides the legal framework for the government's quality assurance rights, allowing for the rejection of non-conforming goods before payment is finalized.
- Contractors must be aware of which version of the inspection clause is included, as incentive or redetermination structures change the administrative requirements for inspection and acceptance.