Hello and thank you for joining us for Episode 23 of Fun with the FAR Season 11!
Our next episode will cover FAR Part 45 (Government Property), Part 46 (Quality Assurance), and Part 47 (Transportation)! As we prepare for our 24th episode of Season 11, here are a few Episode 24 FAR Facts for us to think about:
- 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.
- The Government retains title to all Government-furnished property until that property is properly disposed of, according to the applicable law or regulation. Property the Government has leased and then furnishes to a contractor for use is considered Government-furnished property under the clause at 52.245-1, Government Property. FAR 45.401.
- 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(b) and FAR 52.245-1.
- 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.
- The Government must give contractors an opportunity to correct or replace nonconforming supplies or services when this can be accomplished within the delivery schedule. FAR 46.407.
- Under cost reimbursement, time and materials and labor hour contracts, contractors are permitted to charge the Government for the cost of correction or repair on nonconforming supplies or services. Additional fee or profit must be excluded from all corrective or repair work. See 246-3(f) (cost reimbursement) and 52.246-6(f) (time and materials/labor hour).
- Unless there are valid reasons to the contrary, acquisition of supplies originating within CONUS for ultimate delivery to destinations outside CONUS shall be made on the basis of f.o.b. origin. FAR 47.304-3.