Overview
This section outlines the Government’s policy for quality assurance on contracts at or below the simplified acquisition threshold (SAT), emphasizing a streamlined, risk-based approach to inspection. It directs contracting officers to balance the intensity of oversight against the criticality of the requirement and the vendor's performance history.
Key Rules
- Risk-Based Determination: In determining the extent of quality assurance, the contracting officer must evaluate the criticality of the application, the financial or operational impact of potential losses, and the likelihood of the contractor replacing defective work without dispute.
- Standard Inspection Protocol: By default, inspections for acquisitions at or below the SAT are conducted at the destination and are limited to verifying:
- Type and kind
- Quantity
- Damage
- Readily determinable operability
- Preservation, packaging, packing, and marking
- Higher-Level Requirements: More rigorous inspections or higher-level quality requirements are reserved for "special situations," such as items with critical applications or those meeting specific criteria in FAR 46.402.
- Reduced Oversight for Proven Vendors: For repetitive purchases from manufacturers with a consistent history of defect-free work, the Government may reduce inspection frequency to periodic checks.
Practical Implications
- Reduced Administrative Burden: For most low-dollar commercial items, contractors can expect minimal Government interference and simple visual inspections upon delivery rather than complex in-process oversight.
- Focus on Safety and Criticality: Even if a contract value is small, if the item is safety-sensitive or mission-critical, the Government maintains the right to implement stringent, detailed inspection protocols that focus on specific high-risk characteristics.