FAR 46.307—Fixed-price research and development contracts.
Plain-English Summary
FAR 46.307 tells contracting officers when to use the inspection clause for fixed-price research and development work, specifically the clause at 52.246-7, Inspection of Research and Development—Fixed-Price. It addresses three main decision points: whether the contract’s primary objective is delivery of end items rather than designs, drawings, or reports; whether the contract is fixed-price; and whether the expected dollar value is above the simplified acquisition threshold. It also recognizes an exception where use of the clause is impractical and the clause prescribed in FAR 46.309 is more appropriate. For smaller R&D buys at or below the simplified acquisition threshold, the rule gives the contracting officer discretion to include the clause when doing so is in the Government’s interest. In practice, this section helps ensure the Government uses the right inspection and acceptance terms for R&D acquisitions, balancing oversight needs against the unique nature of research work and the type of deliverable being purchased.
Key Rules
Use clause for qualifying R&D
The contracting officer must insert 52.246-7 in solicitations and contracts for research and development when the contract is fixed-price, the primary objective is delivery of end items other than designs, drawings, or reports, and the expected amount exceeds the simplified acquisition threshold.
Primary objective matters
This rule applies only when the contract is mainly for tangible end items. If the acquisition is primarily for designs, drawings, reports, or similar non-end-item outputs, this clause is not the default choice under this section.
Fixed-price requirement
The clause is tied to fixed-price R&D contracts. If the procurement is not fixed-price, this section does not direct use of 52.246-7.
SAT threshold controls mandatory use
Above the simplified acquisition threshold, use of the clause is mandatory when the other conditions are met. At or below the threshold, the clause is optional and may be used if it serves the Government’s interest.
Impracticality and alternate clause
Even when the mandatory conditions are present, the contracting officer may depart from 52.246-7 if its use is impractical and the clause prescribed in FAR 46.309 is more appropriate.
Responsibilities
Contracting Officer
Determine whether the R&D acquisition is fixed-price, whether the primary objective is delivery of end items rather than designs, drawings, or reports, and whether the expected value is above the simplified acquisition threshold. Insert 52.246-7 when required, consider the FAR 46.309 clause when 52.246-7 is impractical, and decide whether to use the clause for smaller acquisitions when it is in the Government’s interest.
Agency
Support acquisition planning and policy implementation so contracting officers apply the correct inspection clause for fixed-price R&D contracts and use the alternate clause when appropriate.
Contractor
Review the solicitation and contract inspection terms to understand the Government’s inspection and acceptance rights for the R&D end items being delivered and to price and perform accordingly.
Practical Implications
This section is mainly a clause-selection rule, so the biggest day-to-day task is getting the contract type and deliverable characterization right before award.
A common pitfall is treating R&D work like ordinary supply procurement without checking whether the deliverable is an end item or instead designs, drawings, or reports.
Another frequent issue is overlooking the simplified acquisition threshold; the clause is mandatory above it when the other conditions are met, but discretionary at or below it.
Contracting officers should document why 52.246-7 is used, or why it is impractical and FAR 46.309 is more appropriate, to support the file.
Contractors should pay close attention to inspection and acceptance language because it affects performance risk, testing expectations, and when payment or acceptance can occur.
Official Regulatory Text
(a) The contracting officer shall insert the clause at 52.246-7 , Inspection of Research and Development-Fixed-Price, in solicitations and contracts for research and development when- (1) The primary objective of the contract is the delivery of end items other than designs, drawings, or reports, (2) A fixed-price contract is contemplated, and (3) The contract amount is expected to exceed the simplified acquisition threshold; unless use of the clause is impractical and the clause prescribed in 46.309 is considered to be more appropriate. (b) The contracting officer may insert the clause in such solicitations and contracts when the contract amount is expected to be at or below the simplified acquisition threshold, and its use is in the Government’s interest.