Analysis of FAR Subpart 9.3 - First Article Testing and Approval

Overview

FAR Subpart 9.3 outlines the policies and procedures for First Article Testing (FAT) and Approval, a quality assurance mechanism used to ensure a contractor can manufacture products that strictly conform to contract requirements before full-scale production begins. This subpart balances the Government's need for risk mitigation against the potential impacts on cost, delivery schedules, and contractor financial risk.

Key Rules

• Purpose of FAT: The primary goal is to verify that a contractor can furnish a product that meets all contract specifications for acceptance.
• When to Require FAT: It is typically used for new products, new contractors, significant changes in manufacturing processes, or after a long hiatus in production.
• Standard Exceptions: FAT is generally not required for Research & Development (R&D) contracts, products sold in the commercial market, or products already on a Qualified Products List (QPL).
• Risk Allocation: Production or material acquisition performed before FAT approval is at the sole risk of the contractor unless the Contracting Officer specifically authorizes it to meet a demanding delivery schedule.
• Waiver Eligibility: The Government may waive FAT requirements if the contractor has previously delivered identical or similar supplies that were accepted by the Government.
• Evaluation Factors: If the Government performs the testing, the estimated testing costs must be included as a factor in evaluating offers. Additionally, the price for first articles must not be "materially unbalanced" compared to production quantities.
• Formal Changes: Any changes to designs or specifications identified during the FAT process must be formalized via the "Changes" clause, not merely through the notification of approval or disapproval.

Responsibilities

• Contracting Officer (CO):
  • Determines if FAT is necessary by considering cost, time, and risk.
  • Decides whether the Contractor or the Government will conduct the testing.
  • Authorizes (if necessary) the acquisition of materials prior to approval.
  • Formally notifies the contractor in writing of approval, conditional approval, or disapproval.
• Contractor:
  • Conducts testing (if specified) and submits detailed test data/reports to the Government.
  • Bears the financial risk of production prior to approval unless otherwise authorized.
  • Produces the first article and production quantities at the same facility (if Alternate I of the clause is used).
• Government Laboratory/Testing Activity:
  • Conducts the testing (if specified) or evaluates the contractor’s test report.
  • Advises the Contracting Officer on whether to approve or disapprove the article.
• Contract Administration Office:
  • Provides advance notification to the testing laboratory regarding shipments.
  • Monitors the timeline for testing completion.

Practical Implications

In real-world government contracting, First Article Testing is a significant "gate" that can impact a project's critical path. For contractors, FAT represents a period of high financial exposure; if they begin production early to meet a tight deadline and the first article fails, the Government is not liable for the wasted costs. For the Government, FAT is an essential safeguard for complex or "exacting" items where a manufacturing error could lead to a fleet-wide defect.

Pro-Tip for Contractors: Always look for the waiver provision in solicitations (FAR 9.306(c)). If you have successfully delivered the same item under a previous contract, providing those contract numbers can save months of testing time and significant costs, often making your proposal more competitive on both price and schedule.