Overview
This section prescribes the mandatory and discretionary use of FAR clause 52.246-4, "Inspection of Services-Fixed-Price," in government solicitations and contracts. It establishes the criteria for when the government must include specific inspection language to ensure service quality in fixed-price arrangements.
Key Rules
- Mandatory Inclusion: Contracting officers must insert FAR clause 52.246-4 in solicitations and contracts for services (or supplies involving services) when a fixed-price contract is expected to exceed the simplified acquisition threshold (SAT).
- Discretionary Inclusion: The clause may be included in contracts at or below the SAT if the contracting officer determines it is in the best interest of the government.
- Applicability: The rule applies to both dedicated service contracts and supply contracts that include the furnishing of services.
Practical Implications
- Contractors performing services above the SAT must be prepared for formal government inspection and potential requirements to re-perform non-conforming work at no additional cost.
- Contracting officers must evaluate the risk and complexity of lower-value acquisitions to decide if the protections of the inspection clause are necessary even when not mandated by the threshold.