52.246-7 Inspection of Research and

Development-Fixed-Price.

As prescribed in 46.307(a), insert the following clause:

Inspection of Research and Development-Fixed-Price (Aug 1996)

(a) The Contractor shall provide and maintain an inspection system acceptable to the Government

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 as long afterwards as the contract requires.

(b) 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. The Government shall perform inspections and tests in a manner

that will not unduly delay the work.

(c) If the Government performs any inspection or test on the premises of the Contractor or a

subcontractor, the Contractor shall furnish and shall require subcontractors to furnish, at no

increase in contract price, all reasonable facilities and assistance for the safe and convenient

performance of these duties. Except as otherwise provided in the contract, the Government shall

bear the expense of Government inspections or tests made at other than the Contractor’s or

subcontractor’s premises.

(d) The Government shall accept or reject the work as promptly as practicable after delivery, unless

otherwise specified in the contract. 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.

(e) 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 price reduction. Failure to agree on a price reduction shall be a dispute.

(f) 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

acceptance. Acceptance shall be conclusive, except for latent defects, fraud, gross mistakes

amounting to fraud, or as otherwise specified in the contract. If acceptance is not conclusive for any

of these causes, 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-

(1) At no increase in contract price, to correct or replace the defective or nonconforming supplies

(work) at the original point of delivery or at the Contractor’s plant at the Contracting Officer’s

election, and in accordance with a reasonable delivery schedule as may be agreed upon between the

Contractor and the Contracting Officer; provided, the Contracting Officer may require a reduction in

contract price if the Contractor fails to meet such delivery schedule; or
(2) Within a reasonable time after the Contractor’s receipt of notice of defects or nonconformance,

to repayment of such portion of the contract price as is equitable under the circumstances if the

Government elects not to require correction or replacement. When supplies (work) are (is) returned

to the Contractor, the Contractor shall bear transportation costs from the original point of delivery

to the Contractor’s plant and return to the original point of delivery when that point is not the

Contractor’s plant.

(End of clause)

Parent topic: 52.246 [Reserved]