FAR 34.102—Policy.
Plain-English Summary
FAR 34.102 states the Government’s policy for paying testing and qualification costs when industrial resources were developed or manufactured with assistance under Title III of the Defense Production Act of 1950. The section implements Section 126 of Public Law 102-558 and is aimed at removing a barrier to the use of these resources by ensuring that required testing and qualification is not left to the contractor, supplier, or end user to absorb as an unfunded burden. In practical terms, this policy matters when a product, material, process, or other industrial resource created with Title III assistance must be tested, certified, or qualified before it can be used or incorporated into a system, weapon, or other federal application. The section is narrow but important: it addresses who pays for required testing and qualification, not the broader acquisition strategy, contract type, or technical approval process. For contracting personnel, it means funding and contract planning must account for these costs when they are necessary to make the Title III-supported resource usable. For contractors and suppliers, it signals that the Government may bear these costs when the statutory conditions are met, which can affect pricing, proposal preparation, and coordination with testing authorities.
Key Rules
Government pays required testing
When testing and qualification are required for use or incorporation of industrial resources developed or manufactured with Title III assistance, the Government policy is to pay those costs. The rule is mandatory in policy terms and is tied to the statutory requirement in Section 126 of Public Law 102-558.
Applies to Title III resources
The policy applies specifically to industrial resources manufactured or developed with assistance under Title III of the Defense Production Act of 1950. It does not create a general rule for all testing or qualification in federal procurement; the Title III assistance link is the trigger.
Covers use or incorporation
The testing and qualification must be required for the resource to be used or incorporated into a federal application. If testing is merely desirable, convenient, or part of ordinary contractor development, this policy does not necessarily apply.
Only required testing and qualification
The Government’s payment obligation is limited to testing and qualification that are required. The section does not say the Government must pay for unrelated development work, redesign, production costs, or optional evaluations.
Responsibilities
Government
Pay for any testing and qualification that are required for the use or incorporation of industrial resources manufactured or developed with assistance under Title III of the Defense Production Act of 1950, consistent with Section 126 of Public Law 102-558.
Contracting Officer
Identify when a procurement involves Title III-assisted industrial resources and ensure the contract or funding arrangement accounts for required testing and qualification costs. The contracting officer should coordinate with technical and program personnel so these costs are properly planned and paid.
Program/Technical Personnel
Determine whether testing and qualification are actually required for the resource to be used or incorporated, and document the basis for that requirement. They should help distinguish mandatory qualification from optional or developmental testing.
Contractor or Supplier
Provide the Title III-assisted industrial resource and support the testing and qualification process as needed. The contractor should identify required testing early and coordinate with the Government on cost responsibility and scheduling.
Practical Implications
This section is mainly a funding rule, so the key day-to-day issue is making sure required testing and qualification costs are not overlooked in planning or pricing.
A common pitfall is assuming all testing related to a Title III-assisted item is automatically covered; the policy only addresses testing and qualification that are required for use or incorporation.
Contracting teams should confirm whether the resource was actually developed or manufactured with Title III assistance, because that fact determines whether the policy applies.
Program offices should document why testing or qualification is required, since that drives whether Government payment is appropriate under this policy.
If the cost responsibility is not addressed early, the result can be delays in qualification, disputes over who pays, or an item that is technically ready but not usable in the intended federal application.
Official Regulatory Text
It is the policy of the Government, as required by Section 126 of Public Law102-558, to pay for any testing and qualification required for the use or incorporation of the industrial resources manufactured or developed with assistance provided under TitleIII of the Defense Production Act of1950.