[25 F.R. 14290, Dec. 31, 1960]

§ 14.100-1 Inspection.

Inspection means the examination (including testing) of supplies and services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether the supplies and services conform to contract requirements.

[27 F.R. 11662, Nov. 27, 1962]

§ 14.100-2 Testing.

Testing is an element of inspection and generally denotes the determination by technical means of the properties or elements of supplies, or components thereof, and involves the application of established scientific principles and procedures.

[27 FR. 11662, Nov. 27, 1962]

(a) Inspection on behalf of the Government shall be conducted in all cases prior to acceptance, except as permitted by § 14.204(b). Inspection shall be accomplished by or under the direction or supervision of Government personnel Except as otherwise provided in the contract, test requirements may be performed in the contractor's or subcontractor's laboratory or any other laboratory acceptable to the Government. The contractor may be required under the terms of the contract to establish and maintain an acceptable inspection or quality control system to assure compliance with contract specifications with a minimum of Government inspection. manufacturer's certificate or other statement of quality or quantity may be considered in determining whether supplies or services are in conformity with the contract; but no provision of the contract shall preclude the Government from performing inspection.

A

(b) The type and extent of inspection needed depend on the particular procurement. For example, for items which would involve small losses in the event of defects and which would probably be replaced by suppliers without contest, inspection may consist only of checks for identity, quality, and shipping damage.

(c) The contracting officer or his representative shall assure that the contractor maintains adequate inspection or quality measures pertinent to the inspection, inspection system, or quality program provisions of the contract. Government inspection activities shall plan and conduct systematic evaluation and verification of the contractor's inspection and quality measures, and of the acceptability of supplies. Such evaluation and verification shall provide the maximum assurance of quality consistent with efficient use of Government and contractor manpower and facilities.

[27 F.R. 11662, Nov. 27, 1962, as amended at 29 F.R. 11823, Aug. 19, 1964]

§ 14.102 Activities responsible for inspection.

Inspection, or the arrangement therefor, is the responsibility of the contracting activity. Where a Department or activity uses the inspection services of another Department or activity, the Department or activity performing such inspection has primary inspection cognizance and its inspection determina

tions are binding on the Department or activity for which the inspection services are performed. In coordinated or interdepartmental procurements where Government inspection is to be made at the source, it generally will be made by inspectors of the contracting agency; but this general rule does not alter inspection interchange agreements or preclude the use of inspectors of another Department or activity located at or servicing the contractor's plant or construction site. Where Government inspection at destination is required in coordinated or interdepartmental procurements, the requiring agency or activity may be requested to arrange for the inspection. [27 F.R. 11662, Nov. 27, 1962]

(a) By appropriate inspection interchange agreements departments and activities shall provide for the use of inspection services of other departments, activities or Government agencies when such use will assure the most economical and effective inspection consistent with the best interest of the Government. Inspection interchange agreements shall be designed to eliminate duplication, overlapping, or multiple assignments of Government inspection activities in any one place. Wherever there are multiple Government inspection assignments in a supplier's plant, or place where the work is performed, each of the activities involved shall arrange for the interchange of the inspection services. Specific contracts may be exempted from interchange agreements if they are:

(1) Contracts for research, development, testing or experimental work involving inspection tasks that the originating activity determines can be most effectively performed by the inspection activity of the same service;

(2) Production contracts which can be effectively serviced only by inspectors having advanced training to perform unusual or highly technical tasks. The purpose of such exemptions is to economically utilize the special skills attained in the course of contracts exempted under subparagraph (1) of this paragraph, and/or to develop and maintain a cadre of inspectors trained to perform unusual or highly technical inspection tasks in support of mobilization requirements.

(b) Departmental procedures should permit detailed inspection interchange

agreements to be initiated and completed at the operating level which is in a position to insure coordinated and effective implementation. Where the operating levels of a Department are unable to reach inspection interchange agreements or the propriety of exemptions is questioned and cannot be resolved, such matters shall be referred independently by the operating level activity through channels to the head of the Department for resolution.

(c) Inspection interchange agreements shall be in accordance with the following:

(1) When inspection is to be made by other activities within the Department of Defense such inspection shall be performed without reimbursement except to the extent that reimbursement in kind is practicable.

(2) When inspection is to be made by or for other Government agencies, such inspection will be made on a mutually acceptable basis. Reimbursement for inspection conducted for such agencies shall be on a mutually acceptable basis in accordance with Public Law 85-781, due consideration being given to possible savings and increased efficiency for the Government as a whole.

(3) All agreements shall include specific provision for: (i) use of the practices, records, and forms of the activity performing inspection, unless the use of others is mutually agreeable; (ii) channels of communication; and (iii) designation of source and delivery date of any Government inspection equipment to be supplied.

[27 F.R. 11663, Nov. 27, 1962]

§ 14.104 Contractor responsibility. [29 F.R. 11823, Aug. 19, 1964]

§ 14.104-1 General.

The standard inspection clauses in Part 7 of this chapter require the contractor to maintain an inspection system acceptable to the Government and records of all inspection work performed by the contractor. The contractor's inspection and quality efforts shall provide reasonable assurance that the supplies or services under the contract will conform to contract requirements and shall include procedures necessary to this end. When military or federal specifications are used to establish requirements in the contract, the supplier shall be required to perform all examinations and tests called for by the contract re

quirements and specifications except those which are reserved for performance by the Government. Contractors are required to establish and maintain either inspection, an inspection system, or a quality program acceptable to the Government. The contractor is also required to maintain records of all inspection.

[29 F.R. 11823, Aug. 19, 1964]

§ 14.104-2 Contractor inspection.

(a) Standard inspection clauses. For the majority of contracts, the standard inspection clauses in §§ 7.103–5 (a), (b) and (c), 7.203-5(a), 7.302-4 (a) or (b), 7.402-5 (a) (1) or (b), and 7.602-10(a) of this chapter provide sufficient assurance that the supplies or services conform to contract requirements.

(b) Inspection system. When it is desired to require the contractor to maintain an inspection system as prescribed by Military Specification MIL-I45208A, the clause prescribed by §§ 7.1035(d), 7.203–5(b), 7.302-4(c), 7.402–5(c), and 7.602-10(b) of this chapter shall be used. Supplies and services require such an inspection system if total conformance to requirements can be obtained effectively and economically by controlling only inspection and testing rather than all work operations. The required inspection system controls all of the inspections and tests necessary to substantiate the product's conformance to drawings, specifications and other contract requirements, including testing of 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 FR. 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, 7.204

10, 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 program. 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.

(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 or services requiring an inspection system for which Military Specification MIL-I45208A 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]

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 at 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 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 responsibility 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. [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 purchases 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 non

conforming 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]

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 policy and security objectives. When 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

plies.

Authorizing shipment of sup

[29 FR. 11824, Aug. 19, 1964] § 14.110-1 General.

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]