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section46.303

Cost-reimbursement supply contracts

Overview

FAR 46.303 mandates the inclusion of a specific quality assurance clause in cost-reimbursement contracts for supplies, or services that include the delivery of supplies.

Key Rules

  • Mandatory Insertion: The Contracting Officer (CO) must insert the clause at FAR 52.246-3, Inspection of Supplies—Cost-Reimbursement.
  • Contract Type: This rule applies specifically to cost-reimbursement solicitations and contracts.
  • Scope of Deliverables: The requirement applies to contracts for physical supplies and service contracts that involve the furnishing of supplies.

Practical Implications

  • Standardization: This ensures that the government maintains consistent inspection rights and procedures tailored to the cost-reimbursement environment, where the government bears more financial risk than in fixed-price arrangements.
  • Compliance Oversight: Contractors must be prepared for government inspection of deliverables and must maintain quality control systems that align with the specific requirements of the 52.246-3 clause.

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