FAR 52.209-3—First Article Approval-Contractor Testing.
Plain-English Summary
FAR 52.209-3, First Article Approval—Contractor Testing, sets out the rules for when a contractor must build and test a first article before full production can proceed, and how the Government reviews and approves or disapproves that sample. It covers the contractor’s obligation to test a specified number of units, give advance notice so the Government can witness testing, submit a first article test report, and wait for the contracting officer’s written decision. It also addresses what happens if the first article is disapproved, including retesting, contractor-borne costs, possible equitable adjustments, and the consequences of late reports or disapproval under the Default clause. The clause explains when an approved first article may be delivered as part of the contract quantity, what happens if the Government misses its review deadline, and the contractor’s risk for buying materials or starting production before approval. It also includes a waiver provision for previously furnished and accepted supplies, plus two alternates: one requiring the first article and production quantity to be made at the same facility, and another allowing limited early material acquisition or production by written authorization and shifting certain cost rules. In practice, this clause is a gatekeeping mechanism to reduce technical risk before mass production, but it also creates schedule, cost, and compliance exposure if the contractor starts too early, misses reporting deadlines, or fails first article testing.
Key Rules
First article testing required
The contractor must test the specified number of first article units identified in the contract. The clause is used when the Government wants to verify design, workmanship, or performance before authorizing full production.
Advance notice for witness testing
The contractor must notify the contracting officer in writing a specified number of calendar days before testing begins so the Government may witness the tests. Failure to provide proper notice can create schedule and compliance problems.
Test report submission and review
The contractor must submit the first article test report to the designated Government activity within the required time and in the required format. The contracting officer must then issue a written approval, conditional approval, or disapproval within the stated review period.
Conditional approval is not final acceptance
Conditional approval or approval does not excuse compliance with all contract requirements. A conditional approval must identify any further action required, and a disapproval must state the reasons for rejection.
Disapproval triggers retesting at contractor expense
If the first article is disapproved, the contractor may be required to repeat some or all tests, make corrections, or provide another first article. Unless the contract says otherwise, the contractor bears the cost of these additional tests and related corrective work.
Late report or disapproval equals default risk
If the contractor fails to deliver the first article report on time, or if the contracting officer disapproves the first article, the contractor is deemed to have failed to make delivery for purposes of the Default clause. This can expose the contractor to termination for default remedies.
Approved first article may count toward quantity
Unless the contract provides otherwise, if the approved first article is not consumed or destroyed during testing, the contractor may deliver it as part of the contract quantity if it meets all acceptance requirements.
Government delay can require adjustment
If the Government does not act within the required time, the contractor may request an equitable adjustment to delivery dates, performance dates, price, or other affected terms under the Changes clause. The request must be timely and in writing.
Early production is at contractor risk
Before first article approval, the contractor acquires materials or starts production of the balance of the quantity at its own risk. Under the basic clause, those costs are not allocable to progress payments or convenience termination settlements before approval.
Waiver may be available
The Government may waive first article approval if the offeror or contractor has previously furnished identical or similar supplies that were accepted by the Government. The contractor may request a waiver, but approval is discretionary.
Alternate I same-facility requirement
Alternate I adds a requirement that the first article and the production quantity be produced at the same facility. This helps ensure the approved sample is representative of the production line.
Alternate II limited early authorization
Alternate II allows the contracting officer to authorize specific early material acquisition or production by written authorization when needed to meet delivery schedules. It also changes the cost rule so only the first article and authorized costs are allocable before approval, and it requires replacement or correction of all items if testing reveals deviations.
Responsibilities
Contracting Officer
Insert the required contract details, including quantities, dates, addresses, and review periods; decide whether first article approval is required or waived; receive and act on the test report within the stated time; issue written approval, conditional approval, or disapproval with reasons; consider and process timely requests for equitable adjustment if the Government misses its deadline; and, where applicable, provide written authorization under Alternate II for limited early acquisition or production.
Contractor
Produce and test the required first article units; give timely written notice before testing so the Government can witness it; submit the first article test report to the correct address and in the required format; make any required corrections, retests, or replacements after disapproval; bear the cost of retesting and related corrective work unless the contract says otherwise; avoid relying on early production before approval unless specifically authorized; and request a waiver or equitable adjustment in writing when appropriate.
Government activity receiving the report
Receive the first article test report at the designated address and route it for review so the contracting officer can act within the required timeframe.
Government witness/technical personnel
Attend or observe first article testing when notified, evaluate the results as needed, and support the contracting officer’s approval decision.
Practical Implications
This clause is a major schedule gate: production should not be treated as fully authorized until first article approval is received, unless the contract specifically allows early work.
Contractors often get into trouble by buying long-lead materials or starting production too soon; under the basic clause, those costs are at the contractor’s risk and may not be recoverable in a termination settlement.
The notice and report deadlines matter just as much as the test results. A technically good first article can still create default exposure if the report is late or the contractor misses required procedures.
A conditional approval is not the same as final acceptance. Contractors must read the approval letter carefully because it may require additional actions before production can proceed.
Alternate I and Alternate II materially change risk allocation, so both contracting officers and contractors should confirm which version is in the contract and whether any written authorization or same-facility requirement applies.
Official Regulatory Text
As prescribed in 9.308-1 (a) and (b), insert the following clause: First Article Approval-Contractor Testing (Sept 1989) [ Contracting Officer shall insert details ] (a) The Contractor shall test _____ unit(s) of Lot/Item _____ as specified in this contract. At least _____ calendar days before the beginning of first article tests, the Contractor shall notify the Contracting Officer, in writing, of the time and location of the testing so that the Government may witness the tests. (b) The Contractor shall submit the first article test report within _____ calendar days from the date of this contract to _____ [ insert address of the Government activity to receive the report ] marked " First Article Test Report : Contract No. _______ , Lot/Item No. _______ " Within _____ calendar days after the Government receives the test report, the Contracting Officer shall notify the Contractor, in writing, of the conditional approval, approval, or disapproval of the first article. The notice of conditional approval or approval shall not relieve the Contractor from complying with all requirements of the specifications and all other terms and conditions of this contract. A notice of conditional approval shall state any further action required of the Contractor. A notice of disapproval shall cite reasons for the disapproval. (c) If the first article is disapproved, the Contractor, upon Government request, shall repeat any or all first article tests. After each request for additional tests, the Contractor shall make any necessary changes, modifications, or repairs to the first article or select another first article for testing. All costs related to these tests are to be borne by the Contractor, including any and all costs for additional tests following a disapproval. The Contractor shall then conduct the tests and deliver another report to the Government under the terms and conditions and within the time specified by the Government. The Government shall take action on this report within the time specified in paragraph (b) of this subsection. The Government reserves the right to require an equitable adjustment of the contract price for any extension of the delivery schedule, or for any additional costs to the Government related to these tests. (d) If the Contractor fails to deliver any first article report on time, or the Contracting Officer disapproves any first article, the Contractor shall be deemed to have failed to make delivery within the meaning of the Default clause of this contract. (e) Unless otherwise provided in the contract, and if the approved first article is not consumed or destroyed in testing, the Contractor may deliver the approved first article as part of the contract quantity if it meets all contract requirements for acceptance. (f) If the Government does not act within the time specified in paragraph (b) or (c) of this subsection, the Contracting Officer shall, upon timely written request from the Contractor, equitably adjust under the changes clause of this contract the delivery or performance dates and/or the contract price, and any other contractual term affected by the delay. (g) Before first article approval, the acquisition of materials or components for, or the commencement of production of, the balance of the contract quantity is at the sole risk of the Contractor. Before first article approval, the costs thereof shall not be allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government. (h) The Government may waive the requirement for first article approval test where supplies identical or similar to those called for in the schedule have been previously furnished by the offeror/contractor and have been accepted by the Government. The offeror/contractor may request a waiver. (End of clause) Alternate I (Jan 1997) . As prescribed in 9.308-1 (a)(2) and (b)(2), add the following paragraph (i) to the basic clause: (i) The Contractor shall produce both the first article and the production quantity at the same facility. Alternate II (Sept1989). As prescribed in 9.308-1 (a)(3) and (b)(3), substitute the following paragraph (g) for paragraph (g) of the basic clause: (g) Before first article approval, the Contracting Officer may, by written authorization, authorize the Contractor to acquire specific materials or components or to commence production to the extent essential to meet the delivery schedules. Until first article approval is granted, only costs for the first article and costs incurred under this authorization are allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government. If first article tests reveal deviations from contract requirements, the Contractor shall, at the location designated by the Government, make the required changes or replace all items produced under this contract at no change in the contract price.