Overview
This section mandates the inclusion of a specific inspection clause in cost-reimbursement research and development (R&D) contracts when the government expects the delivery of tangible end items.
Key Rules
- Mandatory Clause: Contracting officers must insert FAR 52.246-8, Inspection of Research and Development—Cost-Reimbursement, in applicable solicitations and contracts.
- Applicability Criteria: The clause is required if the contract is cost-reimbursement and the primary goal is the delivery of physical end items (rather than just designs, drawings, or reports).
- Exceptions: The clause may be omitted if its use is impractical or if the clause prescribed in FAR 46.309 is deemed more appropriate for the specific acquisition.
- No-Fee Variation: If the contract is performed on a no-fee basis, the contracting officer must use the clause with its Alternate I.
Practical Implications
- Selection Logic: Contracting officers must differentiate between "pure" R&D (data-centric) and "applied" R&D (hardware-centric) to determine if this inspection clause is necessary.
- Quality Oversight: This rule ensures that for prototype development or hardware-based R&D, the government maintains specific inspection rights suitable for the flexible nature of cost-reimbursement arrangements.