NAS15-10000

MOD 1114 (S/A)

# Section E

## Inspection and Acceptance

NAS15-10000

MOD 1114 (S/A)

**SECTION E - INSPECTION AND ACCEPTANCE**

**E. 1 MATERIAL INSPECTION AND RECEIVING REPORT\
**(NFS 18.52.246-72) (OCT 1988)

1\. At the time of each delivery under this contract, the Contractor
shall furnish to the Government a Material Inspection and Receiving
Report (DD Form 250 series) prepared in 4 copies, an original and 3
copies.

2\. The Contractor shall prepare the DD Form 250 in accordance with NASA
FAR Supplement 18-46.672-1. The Contractor shall enclose the copies of
the DD Form 250 in the package or seal them in a waterproof envelope
which shall be securely attached to the exterior of the package in the
most protected location.

3\. When more than one package is involved in a shipment, the Contractor
shall list on the DD Form 250, as additional information the quantity of
packages and the package numbers. The Contractor shall forward the DD
Form 250 with the lowest numbered package of the shipment and print the
words "CONTAINS DD FORM 250" on the package.

(End of clause)

**E. 2 MANNED SPACE FLIGHT ITEM\
**(NFS 18-52.246-73) (OCT 1988)

The Contractor shall include the following statement in all subcontracts
and purchase orders placed by it in support of this contract, without
exception as to amount, or subcontractual level.

"FOR USE IN MANNED SPACE FLIGHT; MATERIALS, MANUFACTURING, AND
WORKMANSHIP OF HIGHEST QUALITY STANDARDS ARE ESSENTIAL TO ASTRONAUT
SAFETY.

IF YOU ARE ABLE TO SUPPLY THE DESIRED ITEM WITH A HIGHER QUALITY THAN
THAT OF THE ITEMS SPECIFIED OR PROPOSED, YOU ARE REQUESTED TO BRING THIS
FACT TO THE IMMEDIATE ATTENTION OF THE PURCHASER."

(End of clause)

**E.3 INSPECTION AND ACCEPTANCE**

1\. [Inspection]{.underline}, The Government will conduct inspections of
work being performed from time to time in accordance with the
"inspection of Research and Development--Cost Reimbursement" clause
hereof, except for the following:

\(a\) The effort performed by the Contractor's subcontractor Khrunichev,

which shall be in accordance with clause E.4, FGB Inspection and

Acceptance.

\(b\) Government Source Inspection (GSI) of Node 1 hardware required

under this contract will take place at the launch site.

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> 2\. [Acceptance]{.underline},
>
> \(a\) [Flight Items]{.underline},
>
> 1\. Inspection of flight items required under this contract (With the
> exception of Node 1 hardware) will take place at the Contractor's
> facility). Inspection of Node 1 hardware required under this contract
> will take place at the launch site. Provisional acceptance of flight
> items required under this contract (hardware) will take place at the
> launch site. Except:
>
> i\. Provisioned Item Orders (PIO, also known as spares) as defined in
> Section J-9 (e.g. ship in place or to a contractually designated
> storage facility), final acceptance will occur at origin.
>
> ii\. Flight Hardware/Software that does not deliver to the launch site
> (e.g. another NASA site, their designated supplier or an International
> Partner for further processing), final acceptance will occur at
> origin.

2.  Final acceptance of flight items required under this contract
    (hardware and software) will take place after items have been
    delivered, launched, and assembled and integrated in space except
    for the following:

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i.  FGB procured under this contract for which final acceptance shall be
    separate and not conditioned upon the integration of the space
    station as a whole. The basis for acceptance will be the performance
    of the space station elements delivered under this contract.

ii. Final acceptance will be on ground for those flight items that are
    delivered but not launched, assembled and integrated on orbit at the
    expiration of the contract period of performance.

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3.  FGB procured under this contract for which final acceptance shall be
    separate and not conditioned upon the integration of the space
    station as a whole. The basis for acceptance will be the performance
    of the space station elements delivered under this contract.

4.  NASA shall be responsible for the conduct of on-orbit testing to
    verify acceptable performance of space station elements as
    contemplated in (a) 2 above during on-orbit checkout to determine
    that the overall space station is in conformance with functional
    requirements specified in the ISSA system specification (SSP 41000).

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4.  If any delivered item or items do not perform in accordance with the
    requirements of the ISSA systems specification because of reasons
    beyond the Contractor's control (e.g., misuse or damage of the items
    by Government personnel), nonperformance for such reasons will not
    constitute a basis for non-acceptance of the items delivered by the
    Contractor.

\(b\) Ground Support Equipment (GSE) that facilitates launch\
activities will be accepted at the Launch site.

\(c\) [Other Deliverable Hardware]{.underline}

Hardware other than flight hardware will be accepted at place

of manufacture.

\(d\) [Non-Flight Software]{.underline}

Non-Flight software deliverables will be accepted at the Software

Verification Facility in Houston, Texas.

\(e\) [Data and Documentation]{.underline}

Data and documentation will be accepted at the place of delivery.

> \(f\) [On-orbit]{.underline} [ORU Support Equipment]{.underline}

1.  Inspection of each On-orbit ORU Support Equipment item required
    under this contract will take place at the Contractor's facility.

> 2\. Acceptance of each On-orbit ORU Support Equipment item required
> under this contract will take place at the launch site, after
> completion of a Mini- Acceptance Review (MAR) per SSP 50287. The basis
> for acceptance at the MAR will be the successful completion of a First
> Article Inspection (FAI) and a First Article Capability Demonstration
> (FACD).

3\. If any delivered item or items do not perform in accordance with the
requirements of the ISSA systems specification because of reasons beyond
the Contractor's control (e.g., misuse or damage of the items by
Government personnel), nonperformance for such reasons will not
constitute a basis for non-acceptance of the items delivered by the
Contractor.

4\. If any delivered On-orbit ORU Support Equipment item or items do not
perform in accordance with the requirements of the applicable Support
Equipment Item Description because of reasons beyond the Contractor's
control (e.g., misuse or damage of the items by Government personnel),
nonperformance for such reasons will not constitute a basis for
non-acceptance of the items delivered by the Contractor.

[]{.mark}

**E.4 FGB INSPECTION AND ACCEPTANCE**

> 1\. For purposes of this contract, "KhSC subcontract" shall mean the
> M.V Khrunichev State Research and Production Space Center and "KhSC
> subcontract" shall mean Boeing subcontract HX3295 with the M.V.
> Khrunichev State Research and Production Space Center, dated August
> 15, 1995. No modifications to that subcontract are included in this
> clause.
>
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> 2\. The Contractor shall provide and maintain an inspection system
> acceptable to the Government (as documented in data submitted under
> the KhSC subcontract) covering the work under this contract. Complete
> records of all inspection work performed by the Contractor shall be
> maintained and made available to the Government during contract
> performance and for three years after final payment under this
> contract. The Government's right to such records are subject to the
> provisions of the KhSC subcontract concerning proprietary data.
>
> 3\. The Government has the right to inspect and test all work called
> for by the contract, to the extent practicable at all places and
> times, including the period of performance, and in any event before
> acceptance. The Government may also inspect the premises of the
> Contractor or any subcontractor engaged in contract performance. Such
> rights are subject to the provisions of the KhSC subcontract. The
> Government shall perform inspections and test in a manner that will
> not unduly delay the work.

4.  If the Government performs any inspections or test on the premises
    of the Contractor or a subcontractor, the Contractor shall furnish
    and shall require subcontractors to furnish, without additional
    charge, all reasonable facilities and assistance for the safe and
    convenient performance of these duties. Except as otherwise provided
    in this contract, the Government shall bear the expense of
    Government inspections or tests made at other than the Contractor's
    or subcontractor's premises.

> 5\. The Government shall accept or reject the work as promptly as
> practicable after delivery. Government failure to inspect and accept
> or reject the work shall not relieve the Contractor from
> responsibility, nor impose liability on the Government, for
> nonconforming work. Work is nonconforming when it is defective in
> material or workmanship or is otherwise not in conformity with
> contract requirements.
>
> 6\. The Government shall provide provisional acceptance of performance
> in accordance with the milestone schedule set forth in the KhSC
> subcontract. Finality of such acceptance is as described in the KhSC
> subcontract.
>
> 7\. The Government has the right to reject nonconforming work. If the
> Contractor fails or is unable to correct or to replace nonconforming
> work within the delivery schedule (or such later time as the
> Contracting Officer may authorize), the Contracting Officer may accept
> the work and make an equitable reduction in fee. Failure to agree on a
> reduction shall be a dispute.

8.  Inspection and test by the Government does not relieve the
    Contractor from responsibility for defects or other failures to meet
    the contract requirements that may be discovered before final
    acceptance. Final acceptance by the Government shall be made upon
    on-orbit docking of the FGB with the Service Module and successful
    transfer of fuel to the FGB. If correction of deficiency requires
    transportation outside of Russia, the Contractor shall not be
    financially responsible for such transportation, but shall
    facilitate efforts to arrange any necessary transportation.

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> 9\. Prior to the launch of the FGB, the Government, in addition to any
> other rights and remedies provided by law, or under other provisions
> of this contract, shall have the right to require the Contractor to
> correct or replace the defective or nonconforming supplies in
> accordance with a reasonable delivery schedule as may be agreed upon
> between the Contractor and the Contracting Officer. After launch but
> prior to final acceptance of the FGB, the Government, in addition to
> any other rights and remedies provided by law, or under other
> provisions of this contract, shall have the right to require the
> Contractor to (1) correct or replace defective or nonconforming
> supplies, the value of which is not to exceed \$11.4M, or (2) make
> repayment of such portion of the contract price, not to exceed
> (\$11.4M, as is equitable under the circumstances.
>
> 10\. The procedures of this clause apply to effort performed by
> Contractor and by subcontractor KhSC. For matters relating to effort
> which KhSC is responsible for under the KhSC subcontract, the
> Government's rights and remedies under (5) through (9) are no greater
> in scope or duration that as are available to Contractor under the
> KhSC subcontract.
>
> 11\. Notwithstanding any other provision of this clause, the
> Government's right to make inspections, witness acceptance test, and
> examine data resulting from such tests shall not supersede the
> national security interests applicable to the Contractor's
> subcontractors. The Contractor shall require its subcontractors to
> obtain waivers to national security requirements to the maximum extent
> possible. The Contractor is required to make all reasonable efforts to
> limit or avoid movement of tests or inspections off of subcontractor
> premises based on national security concerns.

(End of Clause)

**E.5 INSPECTION OF SERVICES\--COST-REIMBURSEMENT - EXHIBIT D**

(52.246-5, APR 1984)

\(a\) Definition. \"Services,\" as used in this clause, includes
services performed, workmanship, and material furnished or used in
performing services.

\(b\) The Contractor shall provide and maintain an inspection system
acceptable to the Government covering the services under this contract.
Complete records of all inspection work performed by the Contractor
shall be maintained and made available to the Government during contract
performance and for as long afterwards as the contract requires.

\(c\) The Government has the right to inspect and test all services
called for by the contract, to the extent practicable at all places and
times during the term of the contract. The Government shall perform
inspections and tests in a manner that will not unduly delay the work.

\(d\) If any of the services performed do not conform with contract
requirements, the Government may require the Contractor to perform the
services again in conformity with contract requirements, for no
additional fee. When the defects in services cannot be corrected by
reperformance, the Government

may --

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\(1\) require the Contractor to take necessary action to ensure that
future performance conforms to contract requirements and

\(2\) reduce any fee payable under the contract to reflect the reduced
value of the services performed.

\(e\) If the Contractor fails to promptly perform the services again or
take the action necessary to ensure future performance in conformity
with contract requirements, the Government may --

\(1\) by contract or otherwise, perform the services and reduce any fee
payable by an amount that is equitable under the circumstances or

\(2\) terminate the contract for default.

(End of clause)

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