raw materials, inspection and testing at all stages of manufacture, and inspection and testing of the final end item. Instructions, drawings, equipment, sampling, and all other aspects of the inspection and testing functions are required to be controlled. The requirements of MIL-I-45208A are in addition to those in applicable specifications or other contractual documents. This inspection system clause shall not be used in contracts where it is sufficient to use the clauses referenced in paragraph (a) of this section, or where the "Quality Program" clause described in § 14.104-3 is used. [29 F.R. 11823, Aug. 19, 19641 § 14.104-3 Contractor quality program. (a) When total conformance of supplies or services can be assured only by the control of all work operations, as well as control of inspections and tests, the clause prescribed by §§ 7.104-28, 7.20410, 7.303-15, and 7.403-15 of this chapter shall be inserted in the contract. This clause requires that the contractor provide and maintain a quality program in accordance with the requirements of Military Specification MIL-Q-9858A. A MIL-Q-9858A quality program assures adequate quality throughout all areas of contract performance; for example, design, development, fabrication, processing, assembly, inspection, test, maintenance, packaging, shipping, and storage. Such program includes effective control of quality of supplies, complete control of all work operations including manufacturing, fabrication, and assembly operations, and clear delineation of the authority and responsibility of those in charge of design, production testing, and inspection. Cost data compiled by the contractor, such as data relating to the cost of preventing and correcting nonconforming supplies shall be used to aid in managing the quality Drawings, engineering changes, measuring equipment, and other facilities and standards which are necessary for the creation of the required quality shall be adequate, complete, and current. Components, equipment and systems, that form a part of complex supplies may in themselves be so complex that a quality program is required. program. (b) When Military Specification MILQ-9858A is contractually required of a prime contractor, he may insert Military Specification MIL-I-45208A in his subcontracts when the more stringent requirements of MIL-Q-9858A are not considered necessary to obtain the required quality. (c) This clause requiring a quality! program shall not be used for supplies ori services requiring an inspection system: for which Military Specification MIL-I-; 45208A applies. (See § 14.104-2(b).) [25 F.R. 11824, Aug. 19, 1964] § 14.105 Places of inspection. [25 F.R. 14291, Dec. 31, 1960] § 14.105-1 General. Each contract shall designate the place or places of inspection. Inspection of supplies and services shall be made at such times and places (including any stage during the period of manufacture, and including subcontractors' plants) as are necessary to determine that the supplies and services conform to contract requirements. Where the contract provides for inspection at source, shipment prior to inspection may be authorized if it is determined to be in the best interest of the Government. In such cases, to the extent appropriate, the contract should be modified prior to shipment with respect to (a) risk of loss in transit, and (b) shipping and other expenses incurred in the event of rejection at destination. Where the contract provides for inspection at source, the place or places of inspection may not be changed without the authorization of the contracting officer. [27 F.R. 11663, Nov. 27, 1962] § 14.105-2 Inspection at source. Supplies and services shall be inspected at source where: (a) Inspection at any other point would require uneconomical disassembly or destructive testing; (b) Considerable loss would result from the manufacture and shipment of unacceptable supplies or from the delay in making necessary corrections; (c) Special instruments, gauges, or facilities required for inspection are available only at source; (d) Inspection at any other point would destroy or require the replacement of costly special packing and packaging; (e) A quality control system is required by the contract or inspection during performance of the contract is essential; (f) Supplies requiring technical inspection are destined for points of embarkation for oversea shipment; or (g) Otherwise determined to be in the best interest of the Government. [25 F.R. 14291, Dec. 31, 1960, as amended at 27 F.R. 11663, Nov. 27, 1962] $14.105-3 Inspection at destination. Supplies and services shall be inspected Fat destination where: (a) Deliveries of supplies purchased "off the shelf" are made from a point other than that of manufacture; (b) Necessary testing equipment is located only at destination; (c) Biologicals being purchased are processed under direct control of the National Institutes of Health or the Federal Food and Drug Administration; (d) Perishable subsistence supplies are purchased within the United States, except that perishable subsistence supplies destined for oversea shipment will normally be inspected for condition and quantity at points of embarkation; (e) Brand name items are purchased I for authorized resale, except that where * supplies are destined for direct overseas shipment, inspection (and acceptance) will be made by the contracting officer or the official charged with such responsiIbility on the basis of a tally sheet evidencing receipt of shipment signed by the port transportation officer or other designated official at the transshipment point; or (f) Otherwise determined to be in the © best interest of the Government. C[25 F.R. 14291, Dec. 31, 1960] § 14.106 Inspection of small purchases ($2,500 or less). (a) This section applies to all small purchases, including items described in Federal and Military specifications, and qualified products. In determining the type and extent of Government inspection to be required on small purchases, the smallness of possible losses and the likelihood of uncontested replacement of defective articles shall be considered. (b) Generally, inspection of small purI chases shall be at destination. Purchasers, users, and installers may be considered inspectors for small purchase inspection purposes. (c) Unless detailed technical inspection is necessary, inspection shall consist of examination of (1) type and kind, (2) quantity, (3) damage, (4) operability, if readily determinable, and (5) packaging and marking, if applicable. (d) Detailed technical inspection shall be performed if special specifications are involved or if defective supplies can harm personnel or equipment. (e) Detailed technical inspection may be limited to a check of characteristics that require separate specifications and of those likely to cause harm. Such inspection may be limited to inspection of occasional purchases of the same item from the same manufacturing source when there is good reason to rely upon the integrity of the manufacturer because of known safeguards and a significant history of defect-free purchases. (f) Adjustments for short shipments or defective supplies shall be requested from suppliers when recovery will benefit the Government. [25 F.R. 14291, Dec. 31, 1960] § 14.107 Rejection of nonconforming supplies or services. Contractors ordinarily shall be given an opportunity to correct or replace nonconforming supplies or services if this can be done within the required delivery schedule. Unless the contract provides otherwise, such correction or replacement shall be without additional cost to the Government. The standard inspection clause in § 7.103-5 (c) of this chapter reserves to the Government the right to charge the contractor the cost of Government reinspection and retests because of prior rejection. Notices of rejection of nonconforming supplies or services need not be in writing unless (a) the supplies have been delivered to a point other than the contractor's plant, (b) the contractor persists in offering nonconforming supplies or services for acceptance, or (c) delivery or performance is overdue without excusable cause. The reasons for rejection normally shall be stated. If timely notice of rejection is not furnished to the contractor, acceptance may in certain cases be implied as a matter of law from such omission. Therefore, notices of rejection should be furnished promptly to contractors whenever rejection is intended. [27 F.R. 11663, Nov. 27, 1962] § 14.108 Government inspection under subcontracts. Government inspection of subcontracted supplies or services shall be made only when required in the interest of the Government. The primary purpose of subcontract inspection is to assist the Government inspector cognizant of the prime contractor in determining the conformance of supplies or services with contract requirements. It does not relieve the prime contractor of any of his responsibilities under the contract. Supplies and services that do not qualify under the criteria in § 14.105-2 for Government inspection at source shall not be inspected by the Government at the subcontractor's plant or at a construction site. Supplies and workmanship for which certificates, records, reports, and similar evidence of quality are available at the prime contractor's plant or site shall not be Government inspected at the subcontractor's plant except occasionally to verify such evidence. However, Government inspection shall be performed at a subcontractor's plant or site whenever the Government prime contract requires. All oral and written statements and contract provisions relating to the inspection of subcontracted supplies shall be so worded as not to (a) affect the contractual relationship between the prime contractor, and the Government or between the prime contractor and the subcontractor, (b) establish a contractual relationship between the Government and the subcontractor or (c) constitute a waiver of the Government's right to inspect or reject supplies. [27 F.R. 11663, Nov. 27, 1962] § 14.109 Inspection for foreign govern ments. Inspection will be performed only for friendly foreign governments or international agencies and shall be administered in accordance with the foreign policy and security objectives of the United States. Such inspection will be provided only where consistent with or required by legislation, executive orders, or Department of Defense or departmental policies concerning mutual security programs, setting forth foreign When policy and security objectives. inspection is performed outside the United States, the levels of technical capability and the administrative procedures not already prescribed in existing laws, executive orders, or Department of Defense policies will be in accordance with arrangements suitable and acceptable to United States country teams or commanders of unified and specified commands, as appropriate. [27 F.R. 11663, Nov. 27, 1962] § 14.110 Authorizing shipment of supplies. [29 F.R. 11824, Aug. 19, 1964] Generally, the Government inspector shall sign or stamp the shipping papers accompanying source inspected supplies on both prime contracts and subcontracts to release them for shipment. In accordance with the criteria in § 14.110-2 (a), however, an alternative procedure may be used in which the supplier assumes the responsibility for the release for shipment of supplies inspected at contractor and subcontractor facilities, Just as the supplier may be given the responsibility for other functions of quality assurance. When this alternative procedure is used, it will release Department⠀ of Defense manpower for technical inspection functions by eliminating routine signing or stamping of the papers accompanying each shipment. [29 F.R. 11824, Aug. 19, 1964] § 14.110-2 Alternative procedure-contractor release for shipment. (a) The inspecting activity servicing the contract may authorize the supplier | to release supplies for shipment when: (1) When the stamping or signing of the shipping papers by the Government inspector impairs the operation of a planned technical inspection program or places an unreasonable demand on the inspector's time; (2) There is sufficient continuity of production to permit the establishment of a systematic and continuing Government evaluation of the supplier's control of quality; and (3) The contractor has a record of adequate quality assurance, including quality pertaining to preparation for shipment. (b) When the alternative procedure is used, the supplier shall type or stamp and sign the following statement on each copy of the shipping papers: The supplies comprising this shipment have been subjected to and have passed all examinations and tests required by the contract, were shipped in accordance with authorized shipping instruction, and conform to the quality, identity and condition called for in contractual requirements and to the quantity shown on this document. This shipment was released in accordance with the Department of Defense Procedure for Authorizing Shipment of Supplies under authority granted by (Name and Title of inspector) in a letter dated (date of authorizing letter). (Signature and title of supplier's authorized representative) [29 F.R. 11824, Aug. 19, 1964] § 14.110-3 Administration of alternative procedure. (a) Departmental level. Each Department shall: (1) Determine, in accordance with AMCR 715-508 and 715–509, ONM Notice 4355 dated 14 March 1963, AFSC Manual 74-1, or DSA-H-4155.1, the extent to which this procedure is to be used by its inspecting activities; (2) Designate the field offices responsible for authorizing suppliers to use this procedure; (3) Inform its receiving activities that a packing sheet bearing the statement in § 14.110—2(b) identifies supplies that have received Government inspection; and (4) Require receiving activities to transmit promptly information that might warrant withdrawal of the au- thorization. (b) Field level. The office responsible for authorizing suppliers to use this procedure shall: (1) Determine, in accordance with AMCR 715-508 and 715-509, ONM Notice 4355 dated 14 March 1963, AFSC Manual 74-1, or DSA-H-4155.1, that the supplier has established satisfactory quality control; (2) Provide a Government inspection program to assure that the supplier continues to maintain satisfactory quality control; (3) Notify the supplier, in writing, that he is authorized to use this procedure; and (4) Notify the supplier, in writing, when authorization to use this procedure is withdrawn. (c) Supplier plant level. The cognizant inspector for the plant of a contractor or subcontractor authorized to use this procedure shall: (1) Instruct the supplier of his responsibility for the performance of inspections required by the contract and for the processing and release of supplies for shipment; (2) Where acceptance and delivery are at point of origin, sign and date Block A of those copies of DD Form 250 which are to be attached to the contractor's invoice for submission to the paying activity; and (3) Where the criteria in § 14.110-2 (b) are not being met, recommend to the office in paragraph (b) of this section that the authorization be withdrawn. (d) Receiving level. The cognizant inspector at any location receiving supplies released under this procedure shall: (1) Inform the receiving activity of the purpose of this procedure; (2) Instruct the receiving activity that the statement in § 14.110-2(b) identifies supplies that have received Government inspection at the supplier's plant; and (3) Promptly notify the cognizant inspector at the supplier's plant of inadequacies in supplies that might be cause for withdrawal of the authorization to use this procedure. [29 F.R. 11824, Aug. 19, 1964] Subpart B-Acceptance As used in Department of Defense contracts, "acceptance" generally means the act of an authorized representative of the Government by which the Government assents to ownership by it of existing and identified supplies, or approves specific services rendered, as partial or complete performance of the contract. Except as provided in § 14.205, and subject to other terms and conditions of the contract, the Government thereby acknowledges that the supplies or services are in conformity with contract requirements, including those of quality, quantity, packaging, and marking. Depending upon the provisions of the contract, acceptance may be effected prior to, at the time of, or after delivery. However, supplies and services shall not be accepted prior to inspection, except as permitted in § 14.204. Acceptance shall ordinarily be accomplished by execution of an acceptance certificate on the applicable inspection and receiving report form (for example, DD Form 250, DD Form 1155, or Standard Form 44) or other written notice of acceptance. Where acceptance is accomplished at a point other than destination, supplies shall not be reinspected at destination for acceptance purposes. However, such supplies should be examined at destination for damage in transit, quantity, and possible substitution or fraud. [27 F.R. 11663, Nov. 27, 1962] § 14.202 Delivery under F.O.B. origin contracts. (a) Satisfactory evidence of delivery is required before payment other than progress or advance payments may be made under fixed-price supply contracts. Under contracts calling for deliveries F.O.B. origin, the contracting officer or his authorized representative, in certifying that delivery has been made, may in his discretion rely on the contractor's signed statement on his invoice that delivery has been made on a specified date to a named carrier or to a representative of the Government. When necessary to protect the Government's interest, the contracting officer may require either that the contractor furnish a receipted copy of the bill of lading or postal receipt, or that a representative of the Government certify as to actual delivery on the applicable inspection and receiving report form. Invoicing instructions to F.O.B. origin contractors shall require that the contractor state on all invoices (1) the date of shipment, name of carrier, and bill of lading number, or (2) the name and title of the Government representative to whom delivery was made and date of such delivery. (b) Where payment has been made on the basis of a certificate, and the supplies have not been received at destination, prompt follow-up and remedial action will be initiated. [25 F.R. 14292, Dec. 31, 1960] § 14.203 Point of acceptance. Each contract shall specify the point of acceptance. Contracts which provide for delivery F.O.B. destination shall provide for acceptance at destination whether inspection is to occur at destination or at origin. Contracts which provide for delivery F.O.B. origin shall ordinarily provide for acceptance (and inspection) at origin. [25 F.R. 14292, Dec. 31, 1960] § 14.204 Responsibility for acceptance. (a) Acceptance is the responsibility of the contracting officer, or his authorized representative. Where an activity uses services of another activity or Department for the purpose of acceptance, acceptance by the other activity or De partment is binding on the activity for which the services are performed. (b) Certificates of conformance may be required by the contract when the value of supplies or the condition of purchase, delivery, receipt or use thereof make it desirable to have additional assurance that supplies conform to contract requirements. A contractor's certificate of conformance with requirements may be considered a proper element incident to acceptance of supplies or services. However, in instances where small losses would be incurred in the event of defects or where knowledge of the supplier's reputation or past performance provides assurance that the supplies would be replaced without contest, such certificate may be used as the sole basis for acceptance. At the discretion of the contracting officer, a clause may be inserted in contracts requiring the contractor to certify that supplies or services comply with contract requirements. In no case shall the Government's right to inspect supplies or services be jeopardized (see § 14.101). (c) When the contracting officer de-: termines that it is in the best interest of the Government for acceptance to precede inspection, a clause will be used to reserve the Government's right after acceptance to inspect supplies within a reasonable time after delivery and to reject defective items. [27 F.R. 11663, Nov. 27, 1962] § 14.205 Acceptance of supplies or services not conforming with contract requirements. When supplies or services tendered for acceptance do not conform with contract requirements, the applicable contract provisions shall govern the action to be, taken. See § 14.107. For reasons of economy or the urgency of the requirement, acceptance of supplies or services which do not meet all contract requirements may occasionally be desirable. Prior to such acceptance, the contracting officer shall obtain the approval of the requiring activity where the nonconformity with contract requirements (a) affects matters such as safety, durability, performance, or interchangeability of parts or assemblies, (b) results in material increases in weight, where weight is a significant consideration, or (c) affects the basic objectives of the specifications. Acceptance of these types of nonconforming supplies or services shall be covered by an appropriate modifica |