Overview
FAR 46.504 establishes the conditions under which a Contracting Officer may accept a contractor’s written "Certificate of Conformance" as a substitute for a formal Government source inspection.
Key Rules
- Discretionary Authority: Use of the certificate is at the sole discretion of the Contracting Officer, provided it is in the best interest of the Government.
- Risk-Based Criteria: A certificate may be used if potential losses from defects would be small, or if the contractor’s reputation and past performance suggest high reliability and a willingness to correct defects without dispute.
- Source vs. Destination: The certificate can be used regardless of whether the contract originally specified acceptance at source or destination.
- Inspection Rights Preserved: The acceptance of a certificate does not waive or prejudice the Government’s legal right to inspect supplies under the contract's standard inspection clauses.
Practical Implications
- Efficiency: This provision allows for faster processing and delivery of low-risk or commercial items by removing the bottleneck of physical Government inspections.
- Performance Incentive: High-performing contractors benefit from reduced administrative oversight, while the Government maintains a legal "safety net" to demand replacements if the certified goods are later found to be defective.