Subpart 46.2 - Contract Quality Requirements

Overview

FAR Subpart 46.2 establishes the policies and procedures for determining the appropriate quality requirements for government contracts. It provides a risk-based framework that ranges from simple inspection at the time of acceptance to the mandate of comprehensive, higher-level quality management systems based on the complexity and criticality of the acquisition.

Key Rules

• Contractor Primacy: Generally, contractors are responsible for performing all necessary inspections and testing before tendering supplies or services to the Government.
• Four Categories of Quality Requirements:
  1. Commercial Items: Government relies on the contractor’s existing quality systems; in-process inspection is only permitted if it is customary market practice.
  2. Simplified Acquisitions: Reliance is placed on contractor inspection unless the Contracting Officer (CO) determines Government testing is necessary due to risk or cost factors.
  3. Standard Inspection: Requires contractors to maintain an acceptable inspection system, keep records, and grant the Government the right to inspect work in progress.
  4. Higher-Level Requirements: Mandated for complex or critical items where process control (e.g., ISO 9001, AS9100) is necessary to ensure safety and performance.
• Classification Criteria: Quality requirements are determined by three factors:
  • Technical Description: (Commercial vs. Military-Federal specifications).
  • Complexity: (Complex items have quality characteristics not visible in the final product; noncomplex items can be verified by simple end-item testing).
  • Criticality: (Critical items are those where failure could result in personnel injury or mission failure).
• Alternative Methods: COs can authorize alternative inspection methods if they encourage competition, lower costs, and are approved by the technical activity.

Responsibilities

• Contracting Officer (CO):
  • Ensures appropriate quality requirements are included in solicitations and contracts.
  • Determines if Government testing is needed for items below the Simplified Acquisition Threshold.
  • Authorizes contractor-recommended alternative inspection methods when in the Government’s interest.
• Agencies:
  • Establish procedures for determining when higher-level quality standards are necessary.
  • Advise COs on which specific higher-level standards (e.g., AS9100) should be applied.
• Technical/Requirement Activity:
  • Approves alternative inspection methods.
  • Classifies items based on complexity and criticality.
• Contractors:
  • Perform required inspections and testing before delivery.
  • Maintain an inspection system acceptable to the Government and provide access to records.
  • Provide facilities/laboratories for testing unless otherwise specified.

Practical Implications

• Risk-Based Implementation: In real-world scenarios, a "paperclip" (non-complex, non-critical) requires only basic acceptance inspection, whereas a "flight control computer" (complex, critical) requires a Higher-Level Quality requirement like AS9100.
• Cost and Competition: By requiring contractors to use their existing commercial systems for commercial products, the government reduces barriers to entry and avoids the "gold-plating" of requirements that drives up costs.
• Hidden Defects: For complex items (like specialized electronics or structural components), the Government uses its right to "in-process" inspection. This is crucial because if a defect is buried inside a finished assembly, it cannot be detected at the final acceptance stage without destructive testing.
• Specialized Testing: When the Government requires "First Article Approval" or specialized testing (like ballistic testing), the contract must explicitly state that the Government—not the contractor—will perform these specific tests, often because the contractor lacks the specialized range or laboratory.