SUBSECTION 231.1

DPSCM 4155.6

29 Jan 87

SUBSECTION 231.1

DPSCM No. 4155.6

INSPECTION COSTS

Reporting Additional Inspection Costs

I. PURPOSE AND SCOPE. To provide instructions for reporting costs for 

reinspections, inspection of replacement lots and additional inspection caused by 

determination of unreliable status (see Subsections 203.2, 207.3, 207.4, 209.3, 225.3, and 

225.4). This Subsection is applicable to veterinary/medical food inspection personnel 

and personnel of the U.S. Department of Agriculture (USDA)/U.S. Department of 

Commerce (USDC).

II. POLICY.

 A. Veterinary/medical food inspection personnel shall report additional inspection costs 

only if they exceed $25.00 for a lot to the requesting DPSC Personnel performing the 

contract quality assurance function. (DPSC-HSA, DPSC-HSN, HDSRP-S or HDSRE-S, 

as applicable).

 B. The following are some examples of additional inspection or reinspection costs 

which should be reported:

 1. Costs of inspecting replacement lots, or reinspecting lots reworked by the 

contractor, and authorized by the Contracting Officer, when the originally offered lots did 

not conform to contract requirements and were reported as nonconformances.

 2. Costs of reinspecting unreworked lots, which were reported as nonconformances 

(when request for reinspection is made by the contractor), unless the results of 

reinspection indicate conformance and are statistically significantly different from the 

original inspection results (see Subsections 203.2, 209.3 and 225.3).

 3. Increased inspection costs due to additional inspection time, travel, per diem, etc., 

incurred by the Quality Assurance Representative (QAR) because supplies were not 

ready for inspection at the time or place indicated by the contractor.

 4. Costs associated with verification inspection beginning with and subsequent to the 

date of contracting officer's letter notifying the contractor that his/her inspection system 

is unreliable. Contractor's unreliability refers to examinations or testing, or to both 

phases of inspection. Such costs are to be reported until contractor's reliability has been 

reestablished. The reported costs may cover one or more Subsistence contracts and may 

involve one or more Subsistence Contracting Elements (SCEs) (see Subsection 225.4).

 5. Other increased examination, testing and overhead costs not limited herein by 

encompassed by the contract.
 C. Contractor Inspection and Contractor Paid USDA/USDC Inspection. When the 

contractor elects to have the USDA or the USDC perform his/her inspection (or it is 

required by the terms of the contract to arrange for USDA/USDC inspection), all 

inspection charges will be borne by the contractor and no report of inspection costs or 

excess inspection costs is required to be submitted by the USDA/USDC.

 D. Government Inspection. When the Contracting Officer has authorized a 

reinspection, appeal, or new inspection to be done by the USDA/USDC on supplies 

found nonconforming by the Government QAR, all costs will be reported by 

USDA/USDC to the personnel performing the contract quality assurance function only if 

the reinspection, appeal, or new inspection indicate conforming supplies.

III. PROCEDURES.

 A. The Quality Assurance Representative shall:

 1. Determine travel time and all travel expenses between the point of departure and 

point of inspection as follows (if travel is by privately owned vehicle, the rate per mile 

authorized by the travel order, when required, will be included):

 a. Number of hours traveled and all travel expenses required to point of inspection 

(exclusive of overnight stops, other inspection, etc.).

 b. Number of hours traveled and all travel expenses required to point of inspection to 

the QAR's next duty station (exclusive of overnight stops, other inspection, etc.).

 c. If a travel order was not required to cover the travel to perform an inspection, the 

report shall contain a statement to that effect.

 2. For ration assembly contracts or contracts for non-food items, compute costs in 

accordance with DPSCM 4155.5, Subsistence Contractor Inspection Procedures Manual.

 3. Prepare report (in duplicate) of charges, using DD Form 1232, Quality Assurance 

Representative's Correspondence, or receiving report, as applicable, including data as 

pertinent;

 a. Reason for increased costs such as:

 (1) Inspection of replacement lots.

 (2) Delays in inspection when product was not ready at the time designated.

 (3) Shipping point was changed for convenience of the contractor after inspection 

of a lot had been performed.

 b. The manner in which increased costs were necessitated, such as:

 (1) Extra trip by QAR.

 (2) Waiting time or other undue increase in inspection time.

 (3) Additional inspection caused by the contractor's subsequent withdrawal of 

inspected and accepted product for the contractor's convenience.

 (4) Reversion to lot-by-lot verification when the contractor is declared unreliable.

 c. The number of additional hours of inspection when the contractor is responsible for 

delays.

 4. Forward report (in duplicate) with related inspection documents (Inspection Report 

Forms, Request for Test, etc.) to the applicable personnel performing the contract quality 

assurance function. (DPSC-HSA, DPSC-HSN, HDSRP-S or HDSRE-S).
 B. DPSC-HSTE shall report laboratory costs to the contracting officer which are 

incurred while the contractor's Certificate of Conformance or test system is considered to 

be unreliable and the contracting officer has made proper notification to the contractor.

BY ORDER OF THE COMMANDER

EUGENE MILLER, Jr.

Chief, Administrative Management Branch

Office of Installation Services

DISTRIBUTION

 Special

ST-B, ST-E thru ST-P, ST-U and ST-V

DoD Deputy Asst (DAIG-IN) - 1

DoD IGROs - 6

DLA-QL

DLA-QV

DPSC-WXA/Library - 2

DPSC-WS - 25

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This Subsection supersedes Subsection 231.1, 31 May 85.

*Denotes Changes.