Overview
This section prescribes the specific conditions under which the government performs quality assurance and inspections at the delivery point rather than at the source of manufacture or shipment. It generally limits destination quality assurance to basic inspections unless specific technical or logistical circumstances necessitate more complex testing at the site of receipt.
Key Rules
- Limitation of Scope: Government contract quality assurance at destination is normally restricted to the inspection of supplies or services.
- Mandatory Conditions for Destination Inspection: Inspection must be performed at destination if:
- Supplies are "off-the-shelf" and require no technical inspection.
- Necessary testing equipment is only available at the destination.
- Items are perishable subsistence supplies purchased within the U.S.
- Items are brand-name products for resale (e.g., commissaries).
- Products are processed under the direct control of the NIH or the FDA.
- The contract is for services to be performed at the destination.
- Discretionary Clause: The government may perform destination inspection whenever it is determined to be in the government’s best interest.
- Overseas Restriction: Supplies shipped from the U.S. to overseas locations are generally not inspected at the destination unless unusual circumstances exist and the Contracting Officer makes prior arrangements.
Practical Implications
- For contractors, destination inspection means the risk of rejection remains with the vendor until the items reach the government facility, potentially increasing costs if goods must be returned or replaced.
- This regulation streamlines the procurement process for commercial and low-risk items by eliminating the need for government personnel to visit a contractor’s plant for source inspection.