FAR 46.405—Subcontracts.
Plain-English Summary
FAR 46.405 explains when the Government may perform quality assurance at the subcontract level and how that oversight must be handled. It covers four main topics: the limited purpose of Government quality assurance on subcontracted supplies or services, the specific situations that justify inspection or surveillance at a subcontractor’s plant, the rule against duplicating inspection when acceptable quality evidence already exists at the prime contractor’s plant, and the required wording of oral and written statements so Government actions do not alter contract relationships or waive acceptance rights. In practice, this section is about targeted oversight, not routine involvement in subcontract administration. It recognizes that the prime contractor remains responsible for meeting contract requirements, even when work is performed by subcontractors. For contracting officers and quality assurance personnel, the section helps determine when access to a subcontractor facility is appropriate and how to avoid overstepping into the prime-subcontract relationship. For contractors, it signals that subcontracted work may be subject to Government review in limited circumstances, but that the prime still carries the contractual burden for conformity.
Key Rules
Government QA is limited
Government quality assurance at the subcontract level is performed only when it is in the Government’s interest. Its primary purpose is to help the cognizant contract administration office determine whether subcontracted supplies or services conform to contract requirements, or to satisfy one of the specific conditions listed in the rule.
Prime contractor remains responsible
Government subcontract-level quality assurance does not relieve the prime contractor of any contractual responsibility. The prime remains accountable for managing subcontract performance and delivering conforming supplies or services.
Access may be requested through prime
When appropriate, the prime contractor should be asked to arrange timely Government access to the subcontractor’s facility. This preserves the prime’s role in subcontract management while allowing necessary Government oversight.
Four triggers justify subcontract QA
The Government shall perform quality assurance at the subcontract level when inspection at source is required for shipment to the using activity, when source-acceptance conditions under FAR 46.402 apply, when the contract specifically assigns Government QA functions that can only be performed at the subcontractor’s plant, or when the contract otherwise requires it or the Government determines it is in its interest.
Do not duplicate existing evidence
If certificates, records, reports, or similar evidence of quality are available at the prime contractor’s plant, the Government generally should not inspect at the subcontractor’s plant. Limited verification may occur occasionally, or inspection may occur when one of the listed triggers applies.
No change to legal relationships
All oral and written statements and contract terms about subcontract-level Government QA must be drafted so they do not alter the prime-Government or prime-subcontractor relationship, create a direct Government-subcontractor contractual relationship, or waive the Government’s right to accept or reject the supplies or services.
Responsibilities
Contracting Officer / Contract Administration Office
Determine whether subcontract-level quality assurance is needed and ensure it is used only when required in the Government’s interest or under one of the stated triggers. Coordinate with the prime contractor for access to subcontractor facilities and ensure all communications preserve the proper contractual relationships.
Quality Assurance Personnel / Inspectors
Perform subcontract-level quality assurance only within the authorized scope and only when the regulatory conditions are met. Avoid duplicative inspection when acceptable quality evidence is already available at the prime’s plant, and document findings without implying direct control over the subcontractor.
Prime Contractor
Remain fully responsible for contract performance and for the quality of subcontracted supplies or services. When requested, arrange timely Government access to the subcontractor facility and maintain records or evidence of quality that may support Government review at the prime plant.
Subcontractor
Provide access and cooperation only as arranged through the prime contractor and as required by the prime’s subcontract and the Government’s authorized quality assurance needs. The subcontractor is not placed in direct contractual privity with the Government by this section.
Agency / Government
Limit subcontract-level quality assurance to situations justified by contract requirements or Government interest, and ensure that all statements and contract language preserve the Government’s rights without creating unintended contractual relationships.
Practical Implications
This section is a guardrail against over-inspection: the Government should not routinely inspect subcontractor work just because it exists, especially when the prime can provide quality evidence at its own plant.
Contractors should expect Government involvement at subcontractors only in specific cases, such as source inspection, special contract clauses, or when the Government has a documented interest in direct verification.
A common pitfall is treating Government QA visits to a subcontractor as if they shift responsibility away from the prime; they do not, and the prime still bears delivery and quality obligations.
Another risk is careless wording in letters, emails, or contract language that could be read as creating direct Government-subcontractor privity or waiving acceptance rights; communications should be carefully framed.
For acquisition personnel, the practical test is whether subcontract-level QA is truly necessary and authorized; if quality evidence already exists at the prime’s plant, verification there is usually the better and less intrusive approach.
Official Regulatory Text
(a) Government contract quality assurance on subcontracted supplies or services shall be performed only when required in the Government’s interest. The primary purpose is to assist the contract administration office cognizant of the prime contractor’s plant in determining the conformance of subcontracted supplies or services with contract requirements or to satisfy one or more of the factors included in (b) of this section. It does not relieve the prime contractor of any responsibilities under the contract. When appropriate, the prime contractor shall be requested to arrange for timely Government access to the subcontractor facility. (b) The Government shall perform quality assurance at the subcontract level when- (1) The item is to be shipped from the subcontractor’s plant to the using activity and inspection at source is required; (2) The conditions for quality assurance at source are applicable (see 46.402 ); (3) The contract specifies that certain quality assurance functions, which can be performed only at the subcontractor’s plant, are to be performed by the Government; or (4) It is otherwise required by the contract or determined to be in the Government’s interest. (c) Supplies or services for which certificates, records, reports, or similar evidence of quality are available at the prime contractor’s plant shall not be inspected at the subcontractor’s plant, except occasionally to verify this evidence or when required under (b) of this section. (d) All oral and written statements and contract terms and conditions relating to Government quality assurance actions at the subcontract level shall be worded so as not to- (1) Affect the contractual relationship between the prime contractor and the Government, or between the prime contractor and the subcontractor; (2) Establish a contractual relationship between the Government and the subcontractor; or (3) Constitute a waiver of the Government’s right to accept or reject the supplies or services.