FAR 46.308—Cost-reimbursement research and development contracts.
Plain-English Summary
FAR 46.308 tells contracting officers when to include the Inspection of Research and Development—Cost-Reimbursement clause at 52.246-8 in research and development solicitations and contracts. It applies when the contract’s primary objective is the delivery of end items rather than designs, drawings, or reports, and when the government contemplates a cost-reimbursement arrangement. The section also recognizes an exception: if using 52.246-8 is impractical, the contracting officer may instead consider the clause prescribed by FAR 46.309 if that clause is more appropriate. In addition, if the contract is expected to be awarded on a no-fee basis, the contracting officer must use 52.246-8 with Alternate I. Practically, this provision helps ensure the government has the right inspection framework for R&D work where deliverables are tangible end items and payment structure affects how inspection rights should be written into the contract.
Key Rules
Use 52.246-8 for qualifying R&D
The contracting officer must insert the Inspection of Research and Development—Cost-Reimbursement clause in R&D solicitations and contracts when the contract is primarily for delivery of end items and a cost-reimbursement contract is contemplated. This is the default rule for the situation described in the section.
Primary objective must be end items
This rule applies only when the main purpose of the contract is to deliver end items, not designs, drawings, or reports. If the contract is mainly for studies, documentation, or other non-item deliverables, this section does not direct use of this clause.
Cost-reimbursement must be contemplated
The clause is prescribed only when the government expects to use a cost-reimbursement contract type. If another contract type is planned, this section does not control clause selection.
Consider 46.309 if impractical
If using 52.246-8 is impractical, the contracting officer may use the clause prescribed by FAR 46.309 instead, but only if that clause is more appropriate. This creates a limited exception rather than a broad alternative.
Use Alternate I for no-fee awards
When the contract is expected to be awarded on a no-fee basis, the contracting officer must use 52.246-8 with Alternate I. The alternate is required, not optional, in that circumstance.
Responsibilities
Contracting Officer
Determine whether the R&D contract’s primary objective is delivery of end items, whether a cost-reimbursement type is contemplated, and whether a no-fee arrangement is expected. Insert 52.246-8 when the rule applies, use Alternate I for no-fee awards, and consider the FAR 46.309 clause only when use of 52.246-8 is impractical and the other clause is more appropriate.
Agency
Support proper clause selection through acquisition planning and ensure the solicitation and contract structure reflect the intended contract type, deliverables, and fee arrangement. Agencies should also ensure their contracting staff understand when the alternate or substitute clause is needed.
Contractor
Review the solicitation and contract to confirm the inspection clause matches the work scope, deliverables, and payment structure. Contractors should pay close attention to whether the award is no-fee and whether inspection rights and acceptance terms align with the expected end items.
Practical Implications
Clause selection here affects inspection rights, acceptance, and how the government evaluates delivered R&D end items, so getting the contract type and deliverable description right matters early.
A common mistake is treating all R&D work the same; this section is narrower and applies only when the primary objective is end-item delivery rather than reports or designs.
Another pitfall is overlooking the no-fee requirement and failing to use Alternate I, which can create a clause defect in the solicitation or award.
If the contracting officer thinks 52.246-8 is impractical, the record should clearly support why the 46.309 clause is more appropriate to avoid later disputes.
Contractors should verify that inspection language matches the actual performance expectations, especially where prototypes, test articles, or other end items are involved.
Official Regulatory Text
The contracting officer shall insert the clause at 52.246-8 , Inspection of Research and Development-Cost-Reimbursement, in solicitations and contracts for research and development when (a) the primary objective of the contract is the delivery of end items other than designs, drawings, or reports, and (b)a cost-reimbursement contract is contemplated; unless use of the clause is impractical and the clause prescribed in 46.309 is considered to be more appropriate. If it is contemplated that the contract will be on a no-fee basis, the contracting officer shall use the clause with its AlternateI.