Fun with the FAR Parts 45, 46, & 47

1. As a general rule, contractors are ordinarily required to furnish all property necessary to perform Government contracts. A contractor’s inability or unwillingness to supply its own resources is not sufficient reason for the furnishing or acquisition of Government property. FAR 45.102.

2. As a general rule, under firm fixed price type contracts, the contractor retains title to all property acquired by the contractor for use under the contract, except for property identified as a deliverable. FAR 45.402(a).

3. Under cost-type and time-and-materials contracts, the Government acquires title to all property to which the contractor is entitled for reimbursement. FAR 45.402 and FAR 52.245-1.

4. Contracts for commercial items shall rely on a contractor’s existing quality assurance system as a substitute for compliance with Government inspection and testing before tender for acceptance, unless in process inspection is customarily permitted for item being acquired. FAR 46.102(f) and FAR 46.202-1.

5. Under cost reimbursement, time and materials and labor hour contracts, contractors are permitted to charge the Government for the cost or correction or repair on nonconforming supplies or services. Additional fee or profit must be excluded from all corrective or repair work. See 52.246-3(f) (cost reimbursement) and 52.246-6(f) (time and materials/labor hour).

6. Under cost reimbursement, time and materials and labor hour contracts, goods or services will be “deemed accepted” if not rejected by the Government within 60 days of the date of delivery of the supply or service. See 52.246-3(e) (cost reimbursement) and 52.246-6(e) (time and materials/labor hour).

7. Foreign-owned air carriers, such as Lufthansa, may be deemed U.S.-flag air carriers due to certain air transport agreements or other business arrangements. FAR 47.403-2.

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