Overview
This section mandates that government agencies conduct quality assurance and inspections at the contractor's facility (at source) when specific logistical, technical, or financial conditions make inspection upon delivery impractical or risky.
Key Rules
- Avoidance of Waste: Source inspection is required if inspecting elsewhere would necessitate destructive testing or the costly disassembly of the product.
- Risk Mitigation: Agencies must inspect at source if shipping unacceptable supplies would result in significant financial loss or if delays in correcting defects would be detrimental.
- Resource Availability: If specialized instruments, gauges, or facilities required for inspection are only available at the contractor's site, source inspection is mandatory.
- Packaging Preservation: Inspection at source is required to prevent the destruction or necessary replacement of expensive, specialized packing and packaging materials.
- In-Process Requirements: Agencies must perform source inspection when monitoring the actual manufacturing or performance process is deemed essential.
- Broad Discretion: A "catch-all" provision allows for source inspection whenever it is determined to be in the best interest of the Government.
Practical Implications
- Facility Access: Contractors must be prepared to provide government inspectors with access to their facilities, equipment, and personnel during the production phase.
- Cost and Schedule Planning: Identifying source inspection requirements during the solicitation phase is critical, as it impacts the contractor's internal workflows and helps the government avoid the costs associated with rejecting goods after they have been shipped.