FAR 46.202-2—Government reliance on inspection by contractor.
Plain-English Summary
FAR 46.202-2 explains when the Government may rely on a contractor’s own inspection and testing system, and when it must instead perform its own inspection or testing before acceptance. The section applies to supplies and services acquired at or below the simplified acquisition threshold and ties directly to the broader quality assurance framework in FAR Part 46, especially the rule that the contractor is normally responsible for ensuring conformance before tendering items to the Government. It also identifies the circumstances in which the contracting officer may decide that Government inspection is necessary in advance of acceptance or to evaluate the contractor’s internal work processes. In making that decision, the contracting officer must weigh the nature and intended use of the supplies or services, the potential losses from defects, the likelihood that defective work can be replaced or corrected without dispute, and the cost of detailed Government inspection. Practically, this section helps agencies decide how much quality oversight to impose on low-dollar buys, and it helps contractors understand when their own quality controls will be the primary basis for acceptance versus when Government scrutiny will be more direct.
Key Rules
Contractor inspection is the default
For supplies and services at or below the simplified acquisition threshold, the Government normally relies on the contractor to perform all inspection and testing needed to ensure contract compliance before tendering the work for acceptance. This means the contractor’s quality system is the first line of defense against defects.
Government may override reliance
The contracting officer may decide not to rely on contractor inspection if the Government needs to test items before tender or needs to judge the adequacy of the contractor’s internal work processes. This is an exception, not the default rule.
Decision must be based on factors
When deciding whether to rely on contractor inspection, the contracting officer must consider the nature and intended use of the supplies or services, the potential losses from defects, the likelihood of uncontested replacement or correction, and the cost of detailed Government inspection.
Applies to simplified acquisitions
This section is limited to acquisitions at or below the simplified acquisition threshold. For these buys, the regulation favors streamlined oversight and contractor self-inspection unless the Government has a specific reason to intervene.
Quality requirements still apply
Even when the Government relies on contractor inspection, the contractor must still ensure that the supplies or services conform to contract quality requirements before tender. Reliance on the contractor does not reduce the contractual obligation to deliver conforming work.
Responsibilities
Contracting Officer
Determine whether the Government will rely on contractor inspection or instead require Government testing or inspection before acceptance. Make that determination by considering the required factors: the nature and intended use of the item or service, potential defect losses, the likelihood of uncontested correction or replacement, and the cost of detailed Government inspection.
Contractor
Perform all inspection and testing needed to ensure that supplies or services meet contract quality requirements before tendering them to the Government. Maintain internal controls sufficient to prevent defective work from being delivered for acceptance.
Government
Rely on contractor inspection as the default for acquisitions at or below the simplified acquisition threshold, unless the contracting officer determines that Government inspection or testing is necessary in advance of acceptance or to assess internal work processes.
Practical Implications
For low-dollar buys, the Government usually avoids duplicative inspection and lets the contractor’s quality system do the work first.
Contracting officers should document why they are or are not relying on contractor inspection, especially when the item is safety-critical, mission-critical, or difficult to replace.
A common pitfall is assuming that simplified acquisition means no quality oversight; the contractor still must inspect and test before tender.
Another pitfall is overusing Government inspection when the cost of detailed inspection exceeds the risk posed by the purchase.
Contractors should not treat this rule as a relaxation of quality standards; defective work can still be rejected, corrected, or replaced, and poor internal controls can trigger closer Government scrutiny.
Official Regulatory Text
(a) Except as specified in (b) of this section, the Government shall rely on the contractor to accomplish all inspection and testing needed to ensure that supplies or services acquired at or below the simplified acquisition threshold conform to contract quality requirements before they are tendered to the Government (see 46.301 ). (b) The Government shall not rely on inspection by the contractor if the contracting officer determines that the Government has a need to test the supplies or services in advance of their tender for acceptance, or to pass judgment upon the adequacy of the contractor’s internal work processes. In making the determination, the contracting officer shall consider- (1) The nature of the supplies and services being purchased and their intended use; (2) The potential losses in the event of defects; (3) The likelihood of uncontested replacement or correction of defective work; and (4) The cost of detailed Government inspection.