Overview
This section mandates the inclusion of a specific inspection and quality assurance clause in all federal solicitations and contracts involving services when a cost-reimbursement payment structure is utilized.
Key Rules
- Mandatory Clause: The Contracting Officer (CO) is required to insert FAR clause 52.246-5, "Inspection of Services-Cost Reimbursement."
- Applicability: The rule applies to both dedicated service contracts and supply contracts that include the furnishing of services.
- Contract Type Trigger: This requirement is specifically triggered when a cost-reimbursement contract is contemplated rather than a fixed-price arrangement.
Practical Implications
- Quality Oversight: Contractors must maintain an inspection system acceptable to the government and provide the government with access to work sites to ensure services meet contract requirements.
- Corrective Action: Under this clause, if services are found to be defective, the government can require the contractor to perform the services again at no increase in total estimated cost or fee.