52.246-6 Inspection-Time-and-Material and

Labor-Hour.

As prescribed in 46.306 , insert the following clause:

Inspection-Time-and-Material and Labor-Hour (May 2001)

(a) Definitions. As used in this clauseContractor’s managerial personnel means any of the Contractor’s directors, officers, managers,

superintendents, or equivalent representatives who have supervision or direction of-

(1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operation at any one plant or separate location where

the contract is being performed; or

(3) A separate and complete major industrial operation connected with the performance of this

contract.

Materials includes data when the contract does not include the Warranty of Data clause.

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

covering the material, fabricating methods, work, and 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 materials furnished and services performed

under this 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 plant or

plants 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.

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

subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all reasonable

facilities and assistance for the safe and convenient performance of these duties.

(e) Unless otherwise specified in the contract, the Government shall accept or reject services and

materials at the place of delivery as promptly as practicable after delivery, and they shall be

presumed accepted 60 days after the date of delivery, unless accepted earlier.

(f) At any time during contract performance, but not later than 6 months (or such other time as may

be specified in the contract) after acceptance of the services or materials last delivered under this

contract, the Government may require the Contractor to replace or correct services or materials that

at time of delivery failed to meet contract requirements. Except as otherwise specified in paragraph

(h) of this clause, the cost of replacement or correction shall be determined under the Payments

Under Time-and-Materials and Labor-Hour Contracts clause, but the "hourly rate" for labor hours

incurred in the replacement or correction shall be reduced to exclude that portion of the rate

attributable to profit. The Contractor shall not tender for acceptance materials and services required

to be replaced or corrected without disclosing the former requirement for replacement or
correction, and, when required, shall disclose the corrective action taken.

(g)

(1) If the Contractor fails to proceed with reasonable promptness to perform required replacement

or correction, and if the replacement or correction can be performed within the ceiling price (or the

ceiling price as increased by the Government), the Government may-

(i) By contract or otherwise, perform the replacement or correction, charge to the Contractor any

increased cost, or deduct such increased cost from any amounts paid or due under this contract; or

(ii) Terminate this contract for default.

(2) Failure to agree to the amount of increased cost to be charged to the Contractor shall be a

dispute.

(h) Notwithstanding paragraphs (f) and (g) of this clause, the Government may at any time require

the Contractor to remedy by correction or replacement, without cost to the Government, any failure

by the Contractor to comply with the requirements of this contract, if the failure is due to-

(1) Fraud, lack of good faith, or willful misconduct on the part of the Contractor’s managerial

personnel; or

(2) The conduct of one or more of the Contractor’s employees selected or retained by the Contractor

after any of the Contractor’s managerial personnel has reasonable grounds to believe that the

employee is habitually careless or unqualified.

(i) This clause applies in the same manner and to the same extent to corrected or replacement

materials or services as to materials and services originally delivered under this contract.

(j) The Contractor has no obligation or liability under this contract to correct or replace materials

and services that at time of delivery do not meet contract requirements, except as provided in this

clause or as may be otherwise specified in the contract.

(k) Unless otherwise specified in the contract, the Contractor’s obligation to correct or replace

Government-furnished property shall be governed by the clause pertaining to Government property.

(End of clause)

Alternate I (Apr 1984). If Government inspection and acceptance are to be performed at the

contractor’s plant, paragraph (e) below may be substituted for paragraph (e) of the basic clause:

(e) The Government shall inspect for acceptance all items (other than aircraft to be flown away, if

any) to be furnished under this contract at the Contractor’s plant or plants specified in the contract,

or at any other plant or plants approved for such purpose in writing by the Contracting Officer. The

Contractor shall inform the contract administration office or Contracting Officer when the work is

ready for inspection. The Government reserves the right to charge to the Contractor any additional

cost of Government inspection and test when items are not ready at the time for which inspection

and test is requested by the Contractor.

Parent topic: 52.246 [Reserved]