FAR 46.503—Place of acceptance.
Plain-English Summary
FAR 46.503 addresses where the Government will formally accept supplies or services under a contract. It requires every contract to state the place of acceptance, ties that place to the location of Government contract quality assurance (GCQA) when inspection is performed at source or at destination, and points readers to transportation terms in FAR subpart 47.3 when delivery and shipping issues affect acceptance. The rule also explains what happens when supplies are accepted somewhere other than the destination: they are not to be reinspected at destination for acceptance purposes, but they may still be examined there for quantity, transit damage, and signs of substitution or fraud. In practice, this section matters because the place of acceptance determines when title/risk and acceptance-related obligations are triggered, where inspection and acceptance occur, and how later disputes about defects, shortages, or shipping damage are handled. It helps contracting officers write clear contract terms and helps contractors understand where they must present items for final acceptance and what post-delivery checks may still occur.
Key Rules
Contract must state acceptance place
Every contract must specify the place of acceptance. This avoids ambiguity about where the Government will formally accept the supplies or services and where acceptance-related responsibilities end.
Source acceptance follows source QA
When the contract provides for Government contract quality assurance at source, acceptance should ordinarily occur at source. The acceptance point should align with where the Government is performing inspection and quality assurance.
Destination acceptance follows destination QA
When the contract provides for Government contract quality assurance at destination, acceptance should ordinarily occur at destination. This keeps inspection, delivery, and acceptance aligned at the receiving location.
Transportation terms may affect delivery
The rule cross-references FAR subpart 47.3 for transportation terms. Contracting personnel must coordinate acceptance language with shipping and delivery terms so the contract clearly reflects how goods move to the acceptance point.
No reinspection after source acceptance
If supplies are accepted at a place other than destination, they are not to be reinspected at destination for acceptance purposes. Acceptance at the earlier location is final for acceptance, even though destination checks may still occur.
Destination checks still allowed
Even after source acceptance, the Government may examine supplies at destination for quantity, damage in transit, and possible substitution or fraud. These checks are not a second acceptance review, but they protect the Government against shipping losses and misconduct.
Responsibilities
Contracting Officer
Must include the place of acceptance in the contract and select acceptance language that matches the planned GCQA location. Must also ensure transportation and delivery terms are coordinated with the acceptance point and that the contract clearly distinguishes acceptance from later destination checks.
Quality Assurance Personnel / Inspectors
Must perform inspection and acceptance activities at the designated place of acceptance, whether source or destination. If acceptance occurs before delivery, they should not treat destination examination as a second acceptance decision.
Contractor
Must deliver supplies to the specified acceptance point and understand when Government acceptance will occur. Must also be prepared for destination examination for quantity, transit damage, substitution, or fraud even after source acceptance.
Receiving Activity / Destination Personnel
Must conduct destination examinations only for the limited purposes allowed after source acceptance, such as verifying quantity and checking for transit damage or irregularities. Must not reopen acceptance determinations that were already made at the proper acceptance point.
Agency
Must establish and follow procedures that align quality assurance, transportation, and acceptance practices. Must ensure contract administration personnel understand the difference between acceptance and post-delivery examination.
Practical Implications
The acceptance location should be written clearly in the contract; if it is missing or inconsistent with inspection terms, disputes can arise over when acceptance occurred.
Source acceptance does not eliminate all destination checks. Receiving personnel may still inspect for shortages, shipping damage, substitution, or fraud, so contractors should not assume delivery ends all Government review.
Contracting officers should align FAR 46.503 with transportation clauses and delivery terms. A mismatch between shipping terms and acceptance language can create confusion over who bears risk and when.
Contractors should document shipment condition and quantities carefully, because destination examinations often focus on transit damage and shortages rather than product quality already accepted at source.
Government personnel should avoid treating destination examination as a second acceptance inspection. Doing so can create improper reinspection, inconsistent records, and unnecessary disputes over final acceptance.
Official Regulatory Text
Each contract shall specify the place of acceptance. Contracts that provide for Government contract quality assurance at source shall ordinarily provide for acceptance at source. Contracts that provide for Government contract quality assurance at destination shall ordinarily provide for acceptance at destination. (For transportation terms, see subpart 47.3 .) Supplies accepted at a place other than destination shall not be reinspected at destination for acceptance purposes, but should be examined at destination for quantity, damage in transit, and possible substitution or fraud.