FAR 52.234-1—Industrial Resources Developed Under Title III, Defense Production Act.
Plain-English Summary
FAR 52.234-1 implements a Defense Production Act Title III policy tool inside federal contracts by telling contractors how to handle requests involving Title III industrial resources. The clause defines two key terms: "Title III industrial resource" and "Title III project contractor," so users know exactly what kinds of materials, services, processes, and manufacturing equipment are covered and who qualifies as a Title III project contractor. It then establishes a referral process for requests for testing and qualification, requiring the contractor to send any such request from a Title III project contractor to the Contracting Officer rather than acting on it independently. The clause also authorizes the Government, through the Contracting Officer, to direct testing of Title III industrial resources, requires the contractor to perform that testing when directed, and requires the contractor to send test results to the Defense Production Act Office, Title III Program at Wright-Patterson Air Force Base. It further addresses contract administration by stating that when the Contracting Officer modifies the contract to direct testing, the Government will furnish the resource to be tested and provide an equitable adjustment for testing and qualification costs. Finally, it requires flowdown of the clause’s substance to subcontracts, including paragraph (e), so the same handling rules apply throughout the supply chain. In practice, this clause is about protecting the Government’s Title III investment, controlling how qualification testing is requested and performed, and ensuring costs and responsibilities are handled through formal contracting channels.
Key Rules
Definitions control scope
The clause defines "Title III industrial resource" and "Title III project contractor" to identify the resources and parties covered. These definitions are important because the clause applies only to resources developed or maintained under Title III authority and to contractors that received Title III assistance.
Refer requests to CO
If a Title III project contractor asks for testing and qualification of a Title III industrial resource, the contractor must refer that request to the Contracting Officer. The contractor should not independently approve, schedule, or commit to qualification testing outside the contracting chain.
Testing occurs by direction
The contractor must test Title III industrial resources for qualification only when the Contracting Officer directs it. This makes testing a Government-directed contract action rather than a unilateral contractor obligation.
Provide test results to DPA Office
After testing, the contractor must provide the results to the Defense Production Act Office, Title III Program at Wright-Patterson Air Force Base. This ensures the Government program office receives the qualification data needed to manage Title III resources.
Government furnishes resource
When the Contracting Officer modifies the contract to direct testing, the Government will provide the Title III industrial resource to be tested. The contractor is not expected to supply the item being qualified under this clause.
Equitable adjustment required
The Government must make an equitable adjustment for the costs of testing and qualification when the contract is modified to require that work. Contractors should expect formal pricing or schedule relief if the directed testing changes contract performance.
Flowdown to subcontracts
The contractor must insert the substance of the clause, including paragraph (e), in every subcontract issued in performance of the contract. This extends the same referral and testing rules to subcontractors involved in the work.
Responsibilities
Contracting Officer
Receive and manage requests for testing and qualification of Title III industrial resources, decide whether to direct testing, modify the contract when testing is required, provide the resource to be tested through the Government, and ensure an equitable adjustment is made for directed testing costs.
Contractor
Refer any request from a Title III project contractor to the Contracting Officer, perform testing when directed by the Contracting Officer, transmit test results to the Defense Production Act Office, and flow the clause down to all subcontracts issued in performance of the contract.
Government / Defense Production Act Office, Title III Program
Receive test results for Title III industrial resources and use them to support qualification and administration of Title III-developed resources.
Subcontractors
Comply with the flowed-down substance of the clause, including the same referral and testing-related requirements applicable under the prime contract.
Practical Implications
Contractors need a clear internal process for spotting Title III-related requests and routing them immediately to the Contracting Officer; informal commitments can create unauthorized obligations or performance confusion.
Directed testing is not ordinary contractor work under this clause — it requires a contract modification and should trigger review of cost, schedule, and technical impacts before performance begins.
Because the Government provides the resource to be tested, contractors should confirm custody, handling, and test-readiness procedures early to avoid delays or disputes over who supplies what.
The flowdown requirement means primes must ensure subcontract language is updated and subcontractors understand the referral and testing chain, especially where specialized qualification testing may arise.
A common pitfall is treating Title III qualification as a routine commercial test request; in reality, it is tied to a specific statutory program and must be handled through the contracting officer and the Title III program office.
Official Regulatory Text
As prescribed at 34.104 , insert the following clause: Industrial Resources Developed Under Title III Defense Production Act (Sept 2016) (a) Definitions . "Title III industrial resource" means materials, services, processes, or manufacturing equipment (including the processes, technologies, and ancillary services for the use of such equipment) established or maintained under the authority of Title III, Defense Production Act (50 U.S.C. App.2091-2093). Title III project contractor means a contractor that has received assistance for the development or manufacture of an industrial resource under Title III of Defense Production Act (50 U.S.C. App.2091-2093). (b) The Contractor shall refer any request from a Title III project contractor for testing and qualification of a Title III industrial resource to the Contracting Officer. (c) Upon the direction of the Contracting Officer, the Contractor shall test Title III industrial resources for qualification. The Contractor shall provide the test results to the Defense Production Act Office, Title III Program, located at Wright Patterson Air Force Base, Ohio 45433-7739. (d) When the Contracting Officer modifies the contract to direct testing pursuant to this clause, the Government will provide the Title III industrial resource to be tested and will make an equitable adjustment in the contract for the costs of testing and qualification of the Title III industrial resource. (e) The Contractor agrees to insert the substance of this clause, including paragraph (e), in every subcontract issued in performance of this contract. (End of clause)