FAR 27.404-6—Inspection of data at the contractor’s facility.
Plain-English Summary
FAR 27.404-6 explains when and how the Government may inspect technical data at the contractor’s facility under the data rights clause at FAR 52.227-14, Alternate V. It covers the contracting officer’s ability to secure this inspection right through the clause, the fact that agencies may adopt Alternate V for general use, and the scope of data that may be reviewed—including data withheld or withholdable under paragraph (g)(1) of the clause. The section also explains who may conduct the inspection, including the contracting officer, a designee, and nongovernmental personnel acting under the same conditions, and it limits the purpose of the inspection to verifying the contractor’s claims about limited rights or restricted rights data or evaluating contract performance. It further sets a time limit: the right may be exercised up to three years after acceptance of all deliverables under the contract. The section allows contracts to exclude specific data items from inspection under paragraph (j), and it requires the contracting officer to appoint an alternate representative if the contractor shows that a particular inspector would create a possible conflict of interest. In practice, this provision balances the Government’s need to verify data-rights assertions and assess performance against the contractor’s interest in protecting sensitive technical information and avoiding biased or conflicted inspections.
Key Rules
Use Alternate V clause
The contracting officer may obtain the right to inspect data at the contractor’s facility by including FAR 52.227-14 with Alternate V. Agencies may also adopt Alternate V for general use, so this is not limited to one-off contract drafting.
Inspectable data scope
The data subject to inspection may include data withheld or withholdable under paragraph (g)(1) of the clause. This means the Government can review certain protected data for the limited purposes authorized by the clause, even though the data is not generally available for unrestricted disclosure.
Limited inspection purposes
Inspection may be used only to verify the contractor’s assertion about limited rights or restricted rights status, or to evaluate work performance under the contract. It is not a general license to review data for unrelated purposes.
Who may inspect
The contracting officer or a designated representative may conduct the inspection, and nongovernmental personnel may also be used if they are subject to the same conditions as the contracting officer. This preserves Government oversight while allowing technical support when needed.
Three-year time limit
The inspection right may be exercised up to three years after acceptance of all items to be delivered under the contract. After that period, the Government’s contractual inspection right under this provision expires.
Contract-specific exclusions
The contract may identify data items that are not subject to inspection under paragraph (j) of Alternate V. This allows the parties to tailor the inspection right and exclude particularly sensitive items if agreed in the contract.
Conflict-of-interest safeguard
If the contractor shows that a particular representative would create a possible conflict of interest, the contracting officer must designate an alternate representative. The contractor must raise and support the concern, but once shown, the Government must substitute the inspector.
Responsibilities
Contracting Officer
Include FAR 52.227-14 with Alternate V when the Government needs inspection rights at the contractor’s facility; limit inspection to the authorized purposes; designate the inspector or designee; ensure any nongovernmental personnel are bound by the same conditions; honor contract-specific exclusions; and appoint an alternate representative if the contractor demonstrates a possible conflict of interest.
Contractor
Allow inspection of covered data at the facility when the clause applies; support assertions that data are limited rights or restricted rights data if challenged; identify any contract items excluded from inspection; and notify the contracting officer if a particular Government representative would present a possible conflict of interest.
Agency
May adopt Alternate V for general use and establish internal procedures for its use. Agencies should ensure their personnel and any support contractors understand the limits on inspection, confidentiality conditions, and conflict-of-interest handling.
Designee / Nongovernmental Personnel
Conduct inspections only within the authority and conditions assigned by the contracting officer, and use the data solely for the permitted purposes of verifying rights assertions or evaluating performance.
Practical Implications
This clause gives the Government a post-award tool to test whether the contractor’s data-rights markings and assertions are valid, so contractors should be prepared to justify limited rights or restricted rights claims with documentation.
Because inspection can occur for up to three years after final acceptance, contractors should retain relevant records and maintain access controls well after delivery is complete.
The inspection right is not unlimited: it is tied to specific purposes and may be narrowed by contract language, so both sides should read the clause and any exclusions carefully.
Conflict-of-interest objections matter, but they must be supported by a showing from the contractor; contractors should raise concerns early and specifically if a proposed inspector has a competitive or other problematic relationship.
Agencies using nongovernmental personnel should ensure those individuals are bound to the same confidentiality and use restrictions as Government personnel, or the inspection process can create compliance and protest risk.
Official Regulatory Text
Contracting officers may obtain the right to inspect data at the contractor’s facility by use of the clause at 52.227-14 with its Alternate V, which adds paragraph (j) to provide that right. Agencies may also adopt Alternate V for general use. The data subject to inspection may be data withheld or withholdable under paragraph (g)(1) of the clause. Inspection may be made by the contracting officer or designee (including nongovernmental personnel under the same conditions as the contracting officer) for the purpose of verifying a contractor’s assertion regarding the limited rights or restricted rights status of the data, or for evaluating work performance under the contract. This right may be exercised up to 3 years after acceptance of all items to be delivered under the contract. The contract may specify data items that are not subject to inspection under paragraph (j) of the Alternate. If the contractor demonstrates to the contracting officer that there would be a possible conflict of interest if inspection were made by a particular representative, the contracting officer shall designate an alternate representative.