# DLAD PART 46 – QUALITY ASSURANCE

- SUBPART 46.1 – GENERAL

- 46.101 Definitions.

- 46.102-90 Consideration of quality in contractual decision-making.

- 46.103 Contracting office responsibilities.
- 46.105 Contractor Responsibilities.

- 46.105-90

- SUBPART 46.2 – CONTRACT QUALITY REQUIREMENTS

- 46.202-3 Standard inspection requirements.

- 46.202–4 Higher-level contract quality requirements.
- 46.202–4-90 Manufacturing process controls and in-process inspections.

- SUBPART 46.3 – CONTRACT CLAUSES

- 46.300 (97) Drawings for Inspection (LOGCOM DLR – DLA Land and Maritime).
- 46.302(90) Government Inspection (DLA Disposition Services).
- 46.311 Higher-Level Contract Quality Requirement.

- 46.311-90 Sanitary conditions, subsistence.
- 46.311-91 Federal Food, Drug and Cosmetic Act-Wholesale Meat Act.
- 46.311-92 Phytosanitary certificates for export shipments of produce.
- 46.311-93 Entry into plant by Government employees.
- 46.311-94 Storage of semi-perishable components.
- 46.311-95 Acquisition of liquids in bulk quantities.

- 46.312 Construction Contracts.

- 46.312-90 Inspection of Construction.

- 46.390 Certificate of quality compliance (COQC).
- 46.391 Measuring and test equipment.
- 46.392 Contractor clauses for product verification testing (PVT) and production lot testing (PLT).
- 46.393 Solicitation provisions and contract clauses for Aircraft Launch and Recovery Equipment (ALRE).
- 46.393(a)
- 46.394(a)
- 46.394(b)
- 46.394(c)
- 46.395
- 46.396 Solicitation Provisions and Contract Clauses for Metal Items.
- 46.396

- SUBPART 46.4 – GOVERNMENT CONTRACT QUALITY ASSURANCE

- 46.401 General.

- 46.401-90
- 46.401-91 Quality assurance provisions.
- 46.401-92 Use of commercial concerns to perform inspection of services and facilities (DLA Disposition Services ).

- 46.402 Government contract quality assurance at source.

- 46.402-90 Acquiring quality assurance support on contracts awarded to contractors located overseas.
- 46.402-91
- 46.402-92
- 46.402-93

- 46.403 Government contract quality assurance at destination.
- 46.404 Government contract quality assurance for acquisitions at or below the simplified acquisition threshold.
- 46.407 Nonconforming supplies or services.
- 46.407(97)

- 46.407-97
- 46.407-97
- 46.407-98
- 46.470-1 Planning.

- 46.471 Authorizing shipment of supplies.
- 46.490 Oversight of DoD supply chain integrity.

- SUBPART 46.5 – ACCEPTANCE

- 46.502 Responsibility of Acceptance.
- 46.503 Place of acceptance.

- 46.503-90
- 46.503-90
- 46.503-91

- 46.504 Certificate of Conformance.

- 46.504-90

- 46.504(a)(90)

- 46.504-91
- 46.504-92 Level I Material Certification (DLA Maritime-Norfolk).

- SUBPART 46.6 – MATERIAL INSPECTION AND RECEIVING REPORTS

- 46.601 General.

- 46.601-90
- 46.601-91
- 46.601-92
- 46.601-93

- SUBPART 46.7 – WARRANTIES

- 46.706-90
- 46.708-90
- 46.709-90
- 46.709-91
- 46.709-92
- 46.710-91
- 46.710-92
- 46.710-93
- 46.710-94
- 46.710-95

- 46.790 Record of warranty actions.

- SUBPART 46.8 – CONTRACT LIABILITY FOR LOSS OF OR DAMAGE TO PROPERTY OF THE GOVERNMENT

- 46.805 Contract Clauses.
- 46.805(a)(90)

PART 46 – QUALITY ASSURANCE

TABLE OF CONTENTS

SUBPART 46.1 – GENERAL

46.101 Definitions.

46.102-90 Consideration of quality in contractual decision-making.

46.103 Contracting office responsibilities.

46.105 Contractor responsibilities.

SUBPART 46.2 – CONTRACT QUALITY REQUIREMENTS

46.202-3 Standard inspection requirements.

46.202-4 Higher-level contract quality requirements.

46.202-4-90 Manufacturing process controls and in-process inspections.

SUBPART 46.3 – CONTRACT CLAUSES

46.300(97) Drawings for inspection.

46.302 Government inspection (DLA Disposition Services).

46.311 Higher-level contract quality requirement.

46.312 Construction contracts.

46.390 Certificate of quality compliance (COQC).

46.391 Measuring and test equipment.

46.392 Contract clauses for product verification testing (PVT) and production lot testing (PLT).

46.393 Solicitation provisions and contract clauses for Aircraft Launch and Recovery Equipment (ALRE).

46.394

46.395

46.396

SUBPART 46.4 – GOVERNMENT CONTRACT QUALITY ASSURANCE

46.401 General.

46.402 Government contract quality assurance at source.

46.402-90 Acquiring quality assurance support on contracts awarded to contractors located overseas.

46.402-91

46.402-93

46.403 Government contract quality assurance at destination.

46.404 Government contract quality assurance for acquisitions at or below the simplified acquisition threshold.

46.407 Nonconforming supplies or services.

46.407-97

46.470-1 Planning.

46.490 Oversight of DoD supply chain integrity.

SUBPART 46.5 – ACCEPTANCE

46.502 Responsibility for acceptance.

46.503 Place of acceptance.

46.504 Certificate of Conformance.

SUBPART 46.6 – MATERIAL INSPECTION AND RECEIVING REPORTS

46.601 General.

46.601-90

SUBPART 46.7 – WARRANTIES

46.706 Warranty Terms and Conditions.

46.708 Warranties of Data.

46.709 Warranties of Commercial Items.

46.710 Contract Clauses.

46.790 Record of warranty actions.

SUBPART 46.8 – CONTRACTOR LIABILITY FOR LOSS OF OR DAMAGE TO PROPERTY OF THE GOVERNMENT

46.805 Contract Clauses.

SUBPART 46.1 – GENERAL

46.101 Definitions.

Nonconformance. A departure from the requirements specified in the contract, specification, drawing, or other approved product description.

Nonconforming Material. Any item, part, or product with one or more characteristics which depart from the requirements in the contract, specification, drawing, or other approved product description.

Deviation. A written authorization, granted after contract award and prior to manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time.

Waiver. A written authorization granted after contract award to accept a configuration item or other designated item which, during production or after having been submitted for inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use "as is" or after repair by an approved method.

Request for Deviation. The formal document submitted by the contractor to the Government for the purpose of requesting departure from a specific performance or design requirement of a contract, specification, or referenced document.

Request for Waiver. The formal document submitted by the contractor to the Government for the purpose of requesting acceptance of designated nonconforming supplies or services.

Latent defect. One which cannot be ascertained from a reasonable inspection; not readily discernible.

Nonvoluntary recoupment. A recoupment which the contractor is legally and contractually obligated to provide; recompense that the Government can demand from the contractor.

Patent defect. One which is ascertainable from a reasonable inspection at time of acceptance.

Voluntary recoupment. Recompense provided voluntarily by the contractor for defects deemed to be contractor-caused. (The Government cannot demand reimbursement for patent defects discovered after acceptance, because acceptance is conclusive except for latent defects, fraud, gross mistake, warranted items, and the like.)

46.102-90 Consideration of quality in contractual decision-making.

The Government shall consider the use of:

(a) Contractual means for encouraging excellence in the conduct of contractor-responsible quality efforts;

(b) Incentive fee arrangements for achieving quality goals;

(c) Reduced Government surveillance when contractor's quality performance so indicates; and

(d) Other noncontractual motivation techniques.

46.103 Contracting office responsibilities.

(b) Contracting personnel shall incorporate quality assurance requirements communicated to them by the local quality assurance personnel in solicitations and contracts. In the event a change to any of these requirements is determined to be in the best interest of the Government, contracting personnel will coordinate with the quality element before changing the requirements. Justification for such a change shall be documented in the official contract file or be clearly prescribed in coordinated local procedures. For example, a local procedure may specify that the contracting element can unilaterally change the place of inspection from destination to source, whereas source inspection cannot be changed to destination inspection without referring the matter to the quality element for coordination.

(c) With few exceptions, the activity responsible for technical requirements (e.g., specifications, drawings, and standards) is the applicable military component. The quality/technical element at the DLA buying activity, or the functional expert within the Commodity Business Unit (CBU) (or similar structure), is responsible for receiving these requirements from the Services and transmitting or preparing applicable inspection instructions to the DSC contracting officer for inclusion in contracts.

(90) (Reserved.)

(91) Contract Data Package Recommendation/Deficiency Report (DD Form 1716).

(1) Chiefs of the contracting office will designate a single control point with the responsibility to receive, analyze, maintain control, and assure timely resolution of recommended changes to Contract Data Package(s) (CDPs).

(2) Recommended improvements/reported deficiencies in CDPs are usually submitted on DD Form 1716, Contract Data Package Recommendation/Deficiency Report, but may be received via messages or letter, which are to be processed as though they were submitted on a DD Form 1716.

(3)(i) DD Forms 1716 will be logged in by the control point. The log will contain, as a minimum, the following information:

(A) Date logged in;

(B) Control number assigned by submitting activity;

(C) Contracting officer assigned;

(D) Submitting activity;

(E) Originator's required suspense;

(F) Category of CDP problem;

(G) Date required actions completed;

(H) Date logged out.

(ii) The control point will establish a suspense date based on the priority noted in box 5, DD Form 1716.

(iii) The DD Form 1716 will be forwarded for evaluation to the contracting officer having cognizance over the affected contract.

(4) (i) The contracting officer will refer the DD Form 1716 to other technical areas if additional expertise is required. The contracting officer is also responsible for coordination with the technical operations element if contact is required with Service users, engineering support activities (ESAs), or specification preparing activities.

(ii) If it is determined that the recommended improvement/reported deficiency is significant, and delivery and payment have not been completed, action will be taken to modify the current contract. If the recommended improvement/ reported deficiency is insignificant, action will be taken only on future contracts.

(iii) When requested by the submitter of the DD Form 1716, the contracting officer will furnish a reply which states the action to be taken or the rationale for no action. When actions cannot be completed by the suspense date established in accordance with subparagraph (3)(ii) above, the contracting officer will use a DLA Form 65-R (Notification Form), or equivalent, to notify both the submitter and the control point of the revised completion date.

(iv) When all appropriate actions have been completed, the contracting officer will return the completed DD Form 1716 and any necessary documentation to the control point.

(5) The control point will review the completed DD Form 1716 package to determine if all required actions have been completed and if the corrective action developed, or justification for continuing existing requirements, is appropriate. If the response is determined to be appropriate, the log will be so annotated; if additional actions are required, the package, with rationale for additional required actions, will be returned to the contracting officer.

(6) As a means of identifying trends in recommended improvements/reported deficiencies, the control point will review the log on a quarterly basis. Trend data will be forwarded to the contracting office's policy, plans, and/or programs element in order to assist management in focusing on those areas where procedures have not been followed, contract deficiencies have been noted, or repetitive situations have occurred which necessitate further investigation.

46.105 Contractor Responsibilities.

46.105-90

Use 52.246-9033, Operational Check of Equipment Items, in solicitations and awards for medical items except when the item is Federal Supply Classes 6505, 6510, 6532, or Federal Supply Group 68.

SUBPART 46.2 – CONTRACT QUALITY REQUIREMENTS

46.202-3 Standard inspection requirements.

(90) Use 52.246-9022, Inspection System Requirement – Foreign Manufactured Items, in Medical solicitations and awards when higher-level contract quality requirements apply; excluding acquisitions of drugs, pharmaceuticals, biologicals, or items in FSCs 6505 or 6810.

(91) Use 52.246-9023, General Inspection Requirements, in subsistence solicitations and awards; excluding fresh fruits and vegetables, brand name resale, warehouse services and non-food items of operational rations.

(92) Use 52.246-9024, Alternative Inspection Requirements for Selected Items, in solicitations and awards for carlot and less-than-carlot loads of ground beef, bacon, sausage, and selected semi-perishable subsistence items as indicated by DLA Troop Support FTRE.

(93) Use 52.246-9026, Inspection Fees – Petroleum Products, in acquisitions for petroleum products only.

(94) Use 52.246-9027, Inspection of Bulk Deliveries – Petroleum Products, in solicitation and awards for bulk petroleum products when source inspection is required.

46.202–4 Higher-level contract quality requirements.

(b) When the product specialist determines that use of higher-level contract quality requirements is warranted—

(90) The product specialist shall—

(i) Insert the following STO in the PID:

“HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT APPLIES. SEE FAR 52.246-11.”

(ii) When a quality standard other than ISO 9001:2000 is required:

(A) Remove the NSN from the automated system; and

(B) Identify the applicable quality standard in the Material Master.

(91) The contracting officer shall—

(i) When soliciting NSNs with a higher-level contract quality requirement:

(A) Insert the clauses as required at 46.311; and

(B)(1) When ISO 9001:2000 is required, check the block next to ISO 9001:2000 in the clause at FAR 52.246-11; or

(2) When a quality standard other than ISO 9001:2000 is required, complete the clause at FAR 52.246-11 as follows:

(i) Do not check the block next to ISO 9001:2000;

(ii) Check the next block down; and

(iii) Enter the quality standard the product specialist has indicated as being required.

(ii) When evaluating offers for an NSN with a higher-level contract quality requirement and the offeror in line for award has proposed an alternative quality standard:

(A) Determine whether to delay award to evaluate the alternative quality standard:

(1) Obtain confirmation from the supply planner and product specialist that delay of award is unlikely to result in backorders. This determination shall be based on the Agency supply position and the anticipated lead time required for evaluation.

(2) For any purchase, if the time before proposed award does not permit evaluation of an alternative quality standard, and delay of award would adversely affect the Government, then such offers may be considered technically unacceptable for the current acquisition, and award may be made to the otherwise acceptable offeror. The benefits which may accrue to the Government if the alternative quality standard were accepted must be weighed against any adverse effects caused by delaying award. Consideration shall be given to requesting expedited evaluation of the alternative quality standard if the benefits are significant.

(3) Alternative quality standards shall not be evaluated for the instant procurement when acquiring Priority 1 items (IPG 1-3), items on backorder, or Not Mission Capable (NMC) items.

(B) When it is determined to delay award to evaluate an alternative quality standard, refer the offer to the product specialist for review.

(iii) When making award for an NSN with a higher-level contract quality requirement and the product specialist has approved an alternative quality standard for the awardee, complete the clause at FAR 52.246-11 as follows:

(A) Do not check the block next to ISO 9001:2000;

(B) Check the next block down; and

(C) Enter the alternative quality standard approved for the award.

46.202–4-90 Manufacturing process controls and in-process inspections.

(1) Except for conditions cited immediately below, the clause at 52.246-9001, Manufacturing Process Controls and In-Process Inspections, shall be used in solicitations that require higher-level contract quality requirements, when a need exists to strengthen manufacturing process controls and in-process inspections to assure the integrity of the product.

(2) The clause at 52.246-9001 shall be used in all clothing and textile (C&T) solicitations that require higher-level contract quality requirements in accordance with FAR 46.202-4. The clause at FAR 52.246-11, Higher-Level Contract Quality Requirement (Government Specification) and the clause at 52.246-9001 shall be used in C&T solicitations for Government-furnished material (GFM), and shall flow down to the finisher when Contractor-furnished material is a solicitation requirement. C&T solicitations for GFM shall contain coverage to ensure that higher-level contract quality requirements and the clause at 52.246-9001 are applicable to the finisher in the event a converter is awarded the prime contract.

SUBPART 46.3 – CONTRACT CLAUSES

(Revised September 8, 2011 through PROCLTR 2011-32)

46.300 (97) Drawings for Inspection (LOGCOM DLR – DLA Land and Maritime).

Insert the clause at 52.246-9071 Drawings for Inspection (LOGCOM DLR – DLA Land and Maritime) in all solicitations and contracts for DLA Land and Maritime of depot level repairable items managed by LOGCOM when Government inspection will be conducted at source and drawings will not be furnished by the Government, except when the acquisition is conducted using FAR Part 12.

46.302(90) Government Inspection (DLA Disposition Services).

Insert the clause at 52.246-9072, Government Inspection (DLA Disposition Services), in all solicitations and awards for DLA Disposition Services acquisitions of hazardous waste disposal services.

46.311 Higher-Level Contract Quality Requirement.

When the clause at FAR 52.246-11 is used, the contracting officer shall insert the clauses at 52.246-9043, Higher-Level Contract Quality Requirement (Non-Manufacturers), and FAR 52.246-2, Inspection of Supplies-Fixed Price, in solicitations and awards, including when acquisitions are conducted using FAR Part 12.

46.311-90 Sanitary conditions, subsistence.

Use 52.246-9044, Sanitary Conditions, in Subsistence solicitations and contracts.

46.311-91 Federal Food, Drug and Cosmetic Act-Wholesale Meat Act.

Use 52.246-9045, Federal Food, Drug and Cosmetic Act-Wholesale Meat Act, in Subsistence solicitations and contracts except Fresh Fruits and Vegetables.

46.311-92 Phytosanitary certificates for export shipments of produce.

Use 52.246-9046, Phytosanitary Certificates for Export Shipments of Produce, in blanket purchase agreements (BPA) for fresh fruits and vegetables.

46.311-93 Entry into plant by Government employees.

Use 52.246-9047, Entry into Plant by Government Employees for Meal, Ready-to-Eat (MRE) and Tray Pack Items, in acquisitions for MRE and tray pack semi-perishable items.

46.311-94 Storage of semi-perishable components.

Use 52.246-9049, Storage of Semi-perishable Components for Meal, Ready-to- eat (MRE) and Tray Pack, in acquisitions for MRE and tray pack semi- perishable items.

46.311-95 Acquisition of liquids in bulk quantities.

Use 52.246-9050, Acquisition of Liquids in Bulk Quantities, in acquisitions for FSCs 6810 and 6850 when the POT reflects the following statement: "The quantity of material loaded into the transportation vehicle shall be determined in accordance with the applicable paragraph of Clause 52.247-9050 referenced to degrees Fahrenheit."

46.312 Construction Contracts.

46.312-90 Inspection of Construction.

Use 52.246-9028, Inspection of Construction, in solicitations and awards when construction will be performed on a center.

46.390 Certificate of quality compliance (COQC).

(a) The contracting officer shall insert the clause at 52.246-9000, Certificate of Quality Compliance, in all solicitations and awards for safety-critical items; except when acquiring items identified as "critical safety items (CSIs)" (see 11.302-91). Solicitations and awards for CSIs must include the clauses prescribed at 11.304-90(a)-(c); the clause at 52.246-9000 must be considered for use when acquiring CSIs if award is made to a source other than an approved source cited in the acquisition identification description (AID). The contracting officer shall also include the clause in other solicitations and contracts for supplies which meet both of the following conditions:

(1) The material being solicited is required to be produced in accordance with a product specification, drawing, or standard which is designated in the procurement item description (PID).

(2) The Engineering Support Activity, Specification Preparing Activity, and/or Center quality/technical activity have recommended to the contracting officer that objective quality evidence in the form of a specific COQC is needed to ensure that the material offered by the supplier meets all contract and specification requirements. (This recommendation may be accomplished in an automated manner, via the Contract Technical Data File (CTDF) field, "COQC"; or the Center Quality element may otherwise inform the contracting officer that a COQC is required for the particular item.)

(b) The clause may be used regardless of the location (source or destination) at which Government contract quality assurance actions are to be performed. In the case of destination-inspected material, the certificate (or a copy) must accompany the shipment. For source-inspected material, the original certificate must be available for inspection by the Government at the contractor's facility at the time the material is presented for acceptance. A copy may (but need not) accompany the shipment.

46.391 Measuring and test equipment.

The contracting officer shall insert the clause at 52.246-9003, Measuring and Test Equipment, in solicitations and contracts which contain the COQC and which call for inspection at source. This clause may also be used independently of the COQC clause.

46.392 Contractor clauses for product verification testing (PVT) and production lot testing (PLT).

(a) Production verification testing. The contracting officer shall insert the clause at 52.246-9004, Product Verification Testing (PVT), in solicitations and contracts which contain the COQC clause and which call for inspection at source. This clause may also be used independently of the COQC clause. Use the clause with its Alternate I in solicitations, negotiated contracts and purchase orders for non-part numbered packaged petroleum products for FSC 9110, 9116, 9150 and 9160 when inspection is at source.

(b) Production lot testing.

(1) Policy. The product specialist determines whether Production Lot Testing (PLT) will be required.

(i) The acquisition specialist shall refer any requests for waivers or deviations from PLT requirements to the product specialist, who will evaluate the request and furnish recommendations to the acquisition specialist.

(ii) PLT conducted by contractor. The contractor is responsible for producing PLT samples and for conducting the testing. PLT costs are only payable for the report and any additional testing not normally required for production, such as destructive testing, environmental testing, or testing that the contractor has to outsource. The contractor has the option of either not pricing the PLT CLIN, in which case there will be no separate charge to the Government for conducting PLT, or separately pricing PLT under the PLT CLIN. If PLT is offered as a separate price under the PLT CLIN, the acquisition specialist shall insert the offered price for conducting PLT into the PLT CLIN at time of award, if the acquisition specialist determines the contractor’s offered price for PLT is reasonable. If in doubt about the reasonableness of the offered price, the acquisition specialist shall consult with the product specialist. The product specialist will evaluate the PLT Report and furnish the acquisition specialist with a recommendation of approval or disapproval. The acquisition specialist shall notify the contractor in writing whether its PLT Report is approved or disapproved. Samples approved as a result of contractor-conducted PLT may be included with the shipment of the production quantity of the same lot, unless the samples are damaged or destroyed during PLT.

(iii) PLT conducted by Government. The contractor will not separately price additive CLINs for Government production lot testing, because there should be no costs incurred by the contractor; any costs that may be incurred by the contractor are not the responsibility of the Government. The material is to be returned to the contractor upon completion of testing for delivery with the production quantity of the same lot. The PLT CLIN will only be used to pay for approved samples that are consumed, destroyed, or otherwise rendered unusable during Government PLT. Upon receipt of the testing results and the recommendation of approval or disapproval from the testing facility, the product specialist will evaluate the testing results and the testing facility’s recommendation and furnish the acquisition specialist with a recommendation of approval or disapproval, along with a copy of the testing facility’s results and recommendation. The acquisition specialist shall notify the contractor in writing whether its PLT samples are approved or disapproved.

(2) Clauses.

(i) Insert the clause at 52.246-9085, Production Lot Testing (PLT) – Government, in solicitations and awards requiring Government testing of a Production Lot quantity, including when the acquisition is conducted using FAR Part 12. Prior to invoking PLT on a Part 12 contract, compliance with FAR 12.302(c) is required to verify whether market research has established that PLT is or is not consistent with customary industry practice, and whether a waiver is required. When the DPACS PR Trailer includes the statement, “Production Lot Testing Required – Government Testing,” complete the fill-ins in 52.246-9085 with information as shown in the DPACS PR Trailer or with information found in the Material Master, Classification, Product Assurance tab, Services for Object.

(ii) Insert the clause at 52.246-9086, Production Lot Testing (PLT) – Contractor, in solicitations and awards requiring contractor testing of a Production Lot quantity, including when the acquisition is conducted using FAR Part 12. Prior to invoking PLT on a Part 12 contract, compliance with FAR 12.302(c) is required to verify whether market research has established that PLT is or is not consistent with customary commercial practice, and whether a waiver is required. When the DPACS PR Trailer includes the statement, “Production Lot Testing Required – Contractor Testing,” complete the fill-ins in 52.246-9086 with information as shown in the DPACS PR Trailer or with information found in the Material Master, Classification, Product Assurance tab, Services for Object. Use the clause at 52.246-9086 with its Alternate I when the authority to approve or disapprove the PLT Report is delegated to DCMA by the product specialist.

46.393 Solicitation provisions and contract clauses for Aircraft Launch and Recovery Equipment (ALRE).

46.393(a)

Ensure the ALRE clause 52.246-9005 is included in both the solicitation and award for all ALRE requirements with an SPC code of “01”.

46.394(a)

Use 52.246-9009, Lubricating Oil, Internal Combustion Engine MS9250 (A Qualified Product) DLAD (Aug 2007), when purchasing lubricating oil purchased under MIL-L-9000.

46.394(b)

Use 52.246-9010, Determination of Quantity Specific to Lubricating Oils DLAD (Aug 2007), in acquisitions for Lubricating Oil, Engine, Grade OE/HDO 40, MIL-L-2104E.

46.394(c)

Use 52.246-9011, Liquefied Petroleum Gases Quality Assurance DLAD (Aug 2007), When liquefied petroleum gases specified in the purchase order text (POT).

46.395

(a) Use 52.246-9030, Shade Evaluation of Contractor Furnished Components, in C&T and Medical (Clothing) solicitations and contracts when requested by technical personnel. Do not use in purchase orders when inspection and acceptance are at destination.

(b) Use 52.246-9031, Shade Evaluation, in solicitations and contracts for: Woolen and Worsted Piece Goods; Raincoat Fabrics; Cloth, Cotton Polyester, AF Shade 1505; Cotton and Synthetic Piece Goods, and as requested by technical personnel.

46.396 Solicitation Provisions and Contract Clauses for Metal Items.

46.396

The contracting officer may insert the clause at 52.246-9002, Product Certification and Test Reports (Metals), in solicitations and contracts for items in FSG 95 and 96 that contain metals and require certification and test reports with each shipment.

SUBPART 46.4 – GOVERNMENT CONTRACT QUALITY ASSURANCE

(Revised September 13, 2011 through PROCLTR 2011-37)

46.401 General.

46.401-90

Use 52.246-9034, Testing at Government Laboratory, on solicitations and contracts for medical items, unless otherwise indicated by cognizant technical personnel.

46.401-91 Quality assurance provisions.

(a) Insert the clause at 52.246-9064, Quality Conformance Inspection Requirements, in solicitations and awards when manufactured parts are being acquired and the item description states that quality conformance inspection is required; including when the acquisition is conducted using FAR Part 12.

(b) Insert the clause at 52.246-9065, Protection From Degradation Due To Electrostatic/ Electromagnetic Forces, in all solicitations and awards when the item description states the items being acquired are sensitive electronic devices; including when the acquisition is conducted using FAR Part 12.

Use 52.246-9032, Identification of Qualified Laboratory and Source Sampling, in C&T solicitations and contracts for items that require sampling of Contractor Furnished Material at textile finishing plants for verification testing at a contractor's laboratory or at appropriate ICP location.

46.401-92 Use of commercial concerns to perform inspection of services and facilities (DLA Disposition Services ).

Insert the clause at 52.246-9073, Use Of Commercial Concerns To Perform Inspection Of Services And Facilities (DLA Disposition Services ), in all solicitations and awards for DRMS acquisitions of hazardous waste disposal services.

46.402 Government contract quality assurance at source.

Except as provided in 46.402(90)(2)-(3) and 42.402(91), DLA buying activities shall not delegate contract administration to DCMA when a contract, purchase order, or delivery order is valued below $250,000 and requires Government contract quality assurance at source, unless –

(1) Mandated by DoD regulation; or

(2) Required by a memorandum of agreement between the acquiring department or agency and the contract administration agency; or

(3) The contracting officer determines that –

(i) Contract technical requirements are significant (e.g., the technical requirements include drawings, test procedures, or performance requirements);

(ii) Critical product characteristics, specific product features, or specific acquisition concerns have been identified; and

(iii) The contract is being awarded to –

(A) A manufacturer or producer; or

(B) A non-manufacturer or non-producer and specific Government verifications have been identified as necessary and feasible to perform (except as provided in 46.402(90)(3)).

(90) Under normal circumstances, the contracting officer shall apply inspection/acceptance (I/A) requirements as designated by the technical/quality specialist (product specialist). The contracting officer shall not change source I/A to destination I/A without obtaining prior approval from the technical/quality specialist (product specialist). If the prospective awardee is currently identified (e.g., on a contractor alert list) as requiring source I/A, the contracting officer shall not apply destination I/A. The contracting officer may contact the technical/quality specialist (product specialist) for confirmation of, or revision to, an I/A requirement whenever it appears inappropriate to the item or the circumstances of the acquisition.

(1) When a solicitation is issued on the basis of source I/A, and the item is acquired from a sole source that will not permit quality assurance at source, the matter should be negotiated on a case-by-case basis to provide adequate consideration to the Government for the added cost of performance of the necessary technical quality assurance.

(2) Conversely, when a sole source or best value quote/offer is contingent on source I/A and/or f.o.b. origin for items that were solicited on the basis of destination I/A, buying activities shall attempt to negotiate destination I/A terms to the extent practicable and document results (see 46.402(91)(1)).

(3) When a solicitation is issued on the basis of source I/A, and the item is acquired from a non-manufacturer/non-producer (i.e., dealer/distributor), the contracting officer shall award on the basis of source I/A and delegate contract administration to DCMA. This is interim policy until a permanent solution can be developed (e.g., inclusion of a field to capture data in the Vendor Master advising whether a non-manufacturer/non-producer has test/inspection equipment on site).

(91) The contracting officer may change destination I/A requirements to source I/A at time of award when the following conditions apply:

(1) The sole source or best value quote/offer is contingent on source I/A and/or f.o.b. origin for items that were solicited on the basis of destination I/A; and efforts to award on the basis of destination I/A are either impracticable or unsuccessful.

(2) Destinations are unknown (see 47.305-5, 47.304-1(f), and 47.302(c)(1)).

(3) DVD (including foreign military sales) and stock CLINs are combined on the same award.

(4) When the prospective awardee is currently identified (e.g., on a contractor alert list) as requiring source I/A.

(5) When otherwise mutually agreed by the buying activity/contracting officer and DCMA.

46.402-90 Acquiring quality assurance support on contracts awarded to contractors located overseas.

When the solicitation designates quality assurance at source and the award is anticipated to be made to a contractor located overseas, the contracting officer will obtain a commitment from the cognizant overseas DCMA component or host nation Government quality assurance authority prior to the award of the contract to perform the requested contract administration services (CAS). Contracting activities are authorized to deviate from this requirement when acquisition history provides confidence that adequate technical/quality CAS for a specific contract commodity is available in an applicable overseas geographical area.

46.402-91

Use 52.246-9012, Preparation for Delivery and Inspection of Fresh Fruits and Vegetables, in acquisitions for fresh fruits and vegetables.

46.402-92

Use 52.246-9013, Contractor and Government Samples at Origin, in Subsistence solicitations and awards except brand name, warehouse services or fresh fruits and vegetables acquisitions.

46.402-93

(a) Use 52.246-9021, Source Inspection Provisions, in solicitations and awards for Aviation Supply Chain items when one of the following conditions applies:

(1) The item is non-critical and described solely by part number;

(2) Destination inspection would normally apply, but successful awardee will only accept source inspection; and cognizant product specialist has approved;

(3) Source inspection is required solely because the requirement is for an FMS, and the awardee will not accept QAP 001; or

(4) Source inspection is required due to awardee quoting f.o.b. origin on a non-fast pay RFQ that was solicited f.o.b. destination, inspection/acceptance at destination.

(b) 52.246-9021 shall not be used with a QAP or fast pay.

(c) Always include FAR 52.246-15, Certificate of Conformance, in the award when DLAD 52.246-9021 is used.

46.403 Government contract quality assurance at destination.

(a) Prior to designating that Government contract quality assurance actions will be performed at destination, the contracting officer shall determine that the--

(90) Depot or receiving activity has the technical ability to perform quality assurance;

(91) Necessary technical data, specifications, blueprints, etc., are available at the receiving point or will be furnished the receiving activity prior to receipt of the supplies; and

(92) Equipment required to perform quality assurance is available at the receiving point.

(93) Use 52.246-9038 in solicitations and contracts for medical equipment requiring installation at destination.

(b) Acquisition of items for direct shipment overseas may be assigned for contract quality assurance at destination using the Fast Payment procedure in FAR Subpart 13.4 (DFARS Subpart 213.4) if there are no requirements for technical inspection. Other purchases for direct shipment overseas shall be assigned for quality assurance at source, unless the contracting officer determines that the provisions of FAR 46.403(b) are met. When items acquired for direct shipment overseas are shipped through freight consolidation points with contract quality assurance at destination, the ultimate overseas consignee shall be the place of performance of contract quality assurance. The solicitation and the contract shall clearly designate the overseas consignee as the destination and shall provide supplementary guidance as to transshipment point and "mark for" information. Requests for DD Form 250, Material Inspection and Receiving Report, or other evidence of receipt of material shall be addressed to the ultimate overseas consignee, and not to the freight consolidation point.

46.404 Government contract quality assurance for acquisitions at or below the simplified acquisition threshold.

DLA buying activities shall not delegate contract administration to DCMA when a contract, purchase order, or delivery order is valued at or below the applicable simplified acquisition threshold or below $250,000, whichever amount is greater, and requires Government contract quality assurance at source, unless the applicable criteria at 46.402 have been met.

46.407 Nonconforming supplies or services.

(c)(1) The offer of nonconforming material to the Government should be the exception, and contractors should be discouraged from submitting requests for waivers/deviations (hereinafter sometimes referred to as waivers) in all cases where the contractor is at fault in producing the nonconforming supplies. Contracting officers should emphasize to the contractor that the latter is responsible for the control of product quality and for offering to the Government for acceptance only that material which conforms to contractual requirements. When evaluation of technical requirements indicates a specification change is required or would be beneficial to the Government, contracting officers shall take action through appropriate channels with the activity responsible for technical requirements to change the requirements in question, rather than waive them. Caution and good judgment must be exercised by the total Government team involved in the waiver evaluation process to ensure that technical requirements are not degraded during any attempt to assist the contractor in solving its problems with schedule compliance or with fulfilling the valid technical requirements contained in the contract. See subparagraph (f)(90), below.

(90) See definitions at 46.101 and DFARS 246.407(1). The contracting element shall control all contractor requests for waivers and deviations by maintaining a register and recording the following information: type of waiver or deviation (critical, major, or minor); brief description of the requested waiver/deviation; contract number; contractor's name; item identification (NSN and noun nomenclature); specification/technical data; date the request was received; center/service element(s) in the evaluation loop; date resolved; action taken; consideration obtained; specification change made; and any pertinent or commodity-oriented data desired. The data shall be used to report in accordance with the Management Information System Glossary (RCS DLA(M)26(C)MIN). Unless the specification clearly defines major and minor characteristics, all test characteristic nonconformances submitted as waiver requests shall be classified as major nonconformances and processed as such. When several minor nonconformances are submitted for a single item, a determination will be made as to whether the cumulative effect is a major nonconformance.

(91) The contracting officer shall ascertain whether the contractor's request for waiver was forwarded through the ACO and includes the ACO's recommendations for approval or disapproval. The contracting officer must have the ACO's comments and recommendations, in order to evaluate properly a request for waiver. Conversely, the ACO must be fully apprised of the request for waiver to ensure that the contractor has taken action to correct and prevent recurrence of the conditions causing the nonconformance. Therefore, requests for waiver submitted directly to the contracting officer shall be returned to the contractor for resubmission through the ACO, except in those situations where time is an essential element. In such cases, the ACO's recommendations will be obtained by the most expeditious means available. The contracting officer shall refer the request for waiver to the quality and supply elements of the Center, or the CBU, for evaluation and recommendations. In addition to those criteria listed at FAR 46.407(c)(1), the following factors shall be considered in making a decision to accept or reject he waiver request:

(A) Suitability of the item for use "as is," or the practicability and cost of rework or repair. For a major nonconformance, this determination must be made by the activity responsible for technical requirements and obtained in writing.

(B) Previous request(s) for waiver(s) from the same contractor.

(C) Previous request(s) of the same nonconforming characteristics from the same contractor and/or other contractors.

(D) The supply status of the item and the effect that disapproval of the request for waiver/deviation will have on the delivery schedule.

(92) The contracting officer shall submit each accept decision on critical and major nonconformances for approval by the chief of the contracting office. The contractor will not be notified until the chief of the contracting office has made the decision to approve or disapprove the waiver request.

(d) Contracting officers shall make a conscious decision on each DLA contract whether CAO authority to accept minor nonconformances will be withheld. Contracts to new contractors, contracts for new or significantly-changed items or sensitive items (i.e., those with very high visibility), or those cases where previous experience with a contractor warrants that all minor nonconformances be submitted to the contracting office shall receive high consideration. If CAO authority is withheld, the letter of delegation sent to the CAO will clearly indicate such. All contractor requests for waiver of minor nonconformances forwarded to the contracting office shall require approval by the chief of the contracting office.

(d)(90) Contracting officers need to recognize that situations may occur where contractors have a single line producing items which may be supplied as spare parts procured under DLA contracts or further processed by the manufacturer and incorporated into major systems or subsystems procured by the military services. In many of these instances, Material Review Board (MRB) activity is authorized for use in the military service contracts. If CAO authority for approval of minor nonconformances is withheld on DLA contracts in these situations, the Centers and CAOs should work together to resolve any issues concerning how to handle material which may have been subjected to previous MRB activity in the in-process area.

(e) All nonconformance information for decisions on waiver requests made by the Center and any waiver or MRB intelligence provided by the CAO, when authority has not been withheld by the contracting office, shall be included in the contractor's performance record.

(f) (90) No waivers or deviations from design requirements are to be permitted without a commitment to verify the validity of the technical data for the item (e.g., the military or federal specification, engineering drawings, etc.) with the appropriate engineering support activity, and to change any such requirement found to be erroneous, outdated, or unduly restrictive, prior to any future procurements of the item. The only exception authorized is to satisfy requisitions under "readiness" situations and then for direct shipment only (i.e., Direct Vendor Delivery), not for stock. The Lead Standardization Activity (LSA) will be furnished copies of all approved waivers and deviations from military or federal specifications. The LSA will assure that the specification is revised to reflect the product changes allowed by the waiver/deviation. Minor waivers/deviations resulting from errors in manufacturing or from a contractor's inability to meet valid technical requirements are to be granted only under exceptional circumstances, when such waivers are in the best interests of the Government (e.g., when backorders warrant urgent delivery), and never on a repetitive basis. Major/critical nonconformance waiver requests for the sole benefit of the contractor shall not be granted. (This waiver paragraph does not apply to off-specification fuel that can be blended at the depot to be made acceptable.)

(91) The hardware centers, and DLA Troop Support 's medical and clothing and textile commodities, are strongly encouraged to use the calculation provided below as a baseline, or starting point, in determining the adequacy of the contractor's offer of consideration for those rare instances in which waivers or deviations are granted and memorialized via contract modification. These costs are taken from the DLA-DORO Report, Cost of Nonconforming Supplies Update (1994). At the time the study was originally conducted several years ago, the overall DLA average cost associated with a product quality deficiency report, or PQDR, amounted to $501 in administrative costs plus 3.55 percent of the contract value for holding costs. Today, the DLA average administrative cost is $868; holding cost percentages have been separately established by Center, as follows (DLA Troop Support Subsistence and DLA Energy are not included):

DLA Land and Maritime | =5.64% (or 0.0564)
DLA Land and Maritime ( ) | =8.13% (or 0.0813)
DLA Aviation | =5.14% (or 0.0514)
DLA Troop Support | =12.81% (or 0.1281)
DLA Troop Support (C&T) | =0.07% (or 0.0007)
DLA Troop Support (Medical) | =1.47% (0.0147)

(i) Calculation: Amount of consideration = $868 + [H x proposed contract value].

Where - $868 represents the total administrative costs to the Government; H represents the Center average holding cost proportion of the overall contract cost, expressed as a decimal, rather than as a percentage.

Step One: Multiply H for the individual Center by the contract dollar amount of the supplies covered by the waiver or deviation. This is the total holding (variable) cost component for nonconforming supplies.

Step Two: Add $868 (the fixed, or administrative, cost to the Government of dealing with nonconformances) to the result of step one. This is the total amount of consideration which should be used as a guide in determining the adequacy of the contractor's final offer of compensation for the waiver or deviation.

(ii) It is important to note that, if the contracting officer chooses to use this guidance, but is unable to obtain agreement with the contractor on a reasonable (vice a token) consideration amount, the Government is not obligated to accept a lesser amount merely for the sake of reaching that agreement and restoring the contractor to a "conforming" or satisfactory status. In such situations (and assuming the proper notification has been made in writing to the contractor), it may be preferable to leave the contract in a nonconforming status than to modify it for an insignificant amount, or at no cost to the contractor. Either course of action, modifying the contract or refusing to restore the contractor to a satisfactory status in the event of its failure to make a good-faith offer of adequate consideration, will still preserve the Government's right to maintain a record of the deficiency, and to consider future business with the contractor in light of this poor performance. Concern about the possibility of failure to reach agreement with the contractor should, therefore, not affect the contracting officer's decision to use this means of determining the adequacy of the contractor's offer.

(92) [Subparagraphs (f)(92) through (f)(95) do not apply to contracts containing express warranty provisions.] Nothing in this section shall be construed to require the contractor to make restitution to the Government for patent nonconformances discovered after Government inspection and acceptance in accordance with FAR clause 52.246-2, Inspection of Supplies - Fixed Price, or any other standard inspection clause. Nevertheless, in each instance of a contractor-caused, post-acceptance nonconformance, the contracting office that defective product or service, and request repair or replacement. This does not prohibit local procedures which allow for the quality element to discuss quality and technical issues with contractors in the investigation of contractor-caused defective material prior to transmittal of the case to the contracting officer for formal notification to the contractor. After the formal notification, the contractor must decide how to respond to the request. This response (to which the contracting officer must agree as being in the best interest of the Government) may take the form of an offer of monetary restitution (including offset against other contracts), in lieu of repair or replacement in kind.

(93) If the contractor fails to respond to the notice of nonconformance, follow-up letters should be sent, as necessary. If the contractor also refuses to acknowledge the follow-ups, the contracting officer has other options, including assigning the contractor to the Contractor Alert List or ensuring that a preaward survey is performed on the contractor prior to award of any future contract. (Furthermore, whether or not the Government is provided consideration, the fact of that poor performance should still be considered in best-value decisions.)

(94) When workload constraints preclude following up on every initial post-acceptance nonconformance notification, priority should be placed where: the nonconformance is major or critical; the number or dollar amount of the items potentially affected is high; and/or the contractor has a history of tendering defective supplies to the Government.

(95) The contracting officer cannot "hold out” for a specific amount of money when the contractor volunteers a refund or contractual offset in lieu of repair or replacement. He or she may, though, determine whether the amount offered is a realistic alternative to the other ways in which the contractor could rectify the problem. If the refund amount is less than the contract price of the nonconforming items for which it is offered, it may or may not be characterized as a full voluntary refund, because it may only be a partial mitigation of damages. That is, it may not represent the full value of the Government's loss. On the other hand, where the contractor decides that repair is the appropriate form of recoupment, and such repair is less expensive to the contractor than replacement or monetary reimbursement of the full contractual price of the defective items, the Government may nevertheless have been fully compensated for the value of its loss. The contracting officer must determine whether the method of recompense provided is full mitigation for loss; that determination will affect the reporting of the recoupment. See subparagraph (96)(iv), below:

(96) At any time, the Centers should be able to ascertain the number and dollar value of all reported contractor-caused item nonconformances and their disposition. The Agency overall should be provided information on dollar totals associated with these nonconformances and with the corrective actions taken. Therefore, beginning with the third quarter of FY 95, all contracting activities exclusive of DLA Energy shall compile and report to J72 on a quarterly basis, no later than 30 days after the end of a fiscal quarter, and cumulatively. Additionally, up to eleven previous quarters should also be reported. That is, there should eventually be twelve separate quarterly records (three complete fiscal years' worth of data) and one overall total reported in this fashion; the earliest quarter should drop off with each new reporting cycle. If there are remaining unresolved nonconformances from such a "retired" quarter, they should be written off, unless they are the subject of litigation, or a resolution is imminent. The totals requested below should be provided for all reported contractor-caused nonconformances able to be identified by contract by fiscal quarter in which notice of the nonconformance is received by the contracting officer (via PQDR or other means), rather than by contract year. Aggregated totals for collections will be maintained by quarter according to the date the nonconformance is received by the contracting officer, regardless of the date of receipt of the reimbursement. For example, if the contracting officer receives a PQDR for resolution in the second quarter of FY95 on a 1992 contract, the record of the nonconformance will be established in FY95, second quarter. If collections against that nonconformance are received in installments, the first one in the third quarter of that fiscal year and the next in FY 96, these reimbursements will both be reported against the FY 95 second quarter total. Obviously, in order to do this, the contract identity of the records comprising the total of the nonconformances for any quarter will have to be maintained at the Center; collections will need to be "credited" against the appropriate complaint. However, only totals need be reported to J72, as indicated below. A sample report is provided at 90.14.

(i) For the immediately preceding fiscal quarter, up to eleven previous fiscal quarters, and cumulatively, of the total number of validated complaints for which the Government should seek recompense (i.e., nonvoluntary and voluntary recoupments), except for items covered by warranty or fraudulently-tendered items covered under the Counterfeit Material/Unauthorized Product Substitution (CM/UPS) program, the contracting activity should report:

(A) total dollar value [see (iv), below];

(B) total dollars demanded/requested;

(C) total dollars recouped.

(ii) For the immediately preceding fiscal quarter, up to eleven previous fiscal quarters, and cumulatively, of the total number of defects discovered after acceptance that are covered by express warranty, the contracting activity should report:

(A) total dollar value [see (iv), below];

(B) total dollar demanded;

(C) total dollars recouped.

(iii) For the immediately preceding fiscal quarter, up to eleven previous fiscal quarters, and cumulatively, of the total dollars recouped, categories (i) and (ii), the contracting activity should report:

(A) total dollars - monetary reimbursement (including, where used, contract offsets; this may also include repairs to defective items that have been retained by the Government, to the extent these can be quantified. See (f)(95), above, and (IV), below):

(B) total dollars - replacements.

(iv) In order to establish a record of nonconformance against which a voluntary or nonvoluntary recoupment can be applied, the contracting officer must make an initial evaluation of the extent of the Government's loss. In so doing, he/she will likely use the contract price of the defective items as the amount of that loss. However, this may or may not ultimately be determined the correct amount to be collected from a nonconforming contractor. If, either as a result of independent research or in response to a contractor's offer of consideration for less than the contract price, the contracting officer finds that the Government's loss would be satisfied by a lesser amount than originally indicated, the contracting officer should revise the total for nonconformance and the total requested/demanded ((A) and (B) in (i) and (ii), above) downward to what he/she considers a realistic and appropriate amount. On the other hand, total dollars recouped ((C) in (i) and (ii), above) must exactly reflect what has been collected "in cash or in kind." If the amount the contractor offers is less than the contract price but is considered adequate restitution for the nonconformance, the total for the nonconformance and the amount demanded/requested should be identical to the amount received. If the contractor's offer is less than the contract price and the contracting officer does not consider it adequate compensation for the Government's loss, the total for the nonconformance and the total demanded/requested, whether or not these are revised downward from the original record, should not be made equivalent to the contractor's inadequate recompense.

(90) No part of section 46.407 pertains to the deliberate intent on the part of the contractor to provide off-specification product, or otherwise to make a fraudulent tender to the Government. When quality assurance or other personnel discover evidence indicating that the contractor deliberately failed to honor its contractual undertaking, all cognizant parties, including the administrative contracting officer, should confer with PLFA Fraud counsel in accordance with DLAR 5500.10, Combating Fraud in DLA Operations. In line with this policy, recoveries for fraud should continue to be reported as collections by the Office of General Counsel; however, they should not be included in the recoupment reporting scheme set forth in (f)(96), above.

46.407(97)

Use 52.246-9039, Removal of Government Identification from Non-Accepted Supplies, in all solicitations and contracts.

46.407-97

Use 52.246-9025, Reinspection of Nonconforming Supplies, in subsistence solicitations and contracts except warehouse services and brand name commissary resale.

46.407-97

Use 52.246-9051, Repackaging of Hazardous Material, in DLA Direct solicitations and awards only for NSNs in FSCs 6140, 6810, 6820, 6830, 6840, 6850, 9110, or 9150 and which have a Department of Transportation (DOT) classification of flammable liquid, flammable gas, corrosive material, organic peroxide, oxidizer, or poison B specified in the item description, except do not use this clause for items purchased against Federal Supply Schedule. Applicable items shall be solicited inspection at origin, acceptance at destination and f.o.b. destination unless items meeting the above criteria are commercial off-the-shelf and/or part numbered items and the PR cites inspection/acceptance at destination. DO NOT USE Clause 52.246-15, Certificate of Conformance, (Sec E) or Fast Pay procedures.

46.407-98

Use 52.246-9062, Repackaging to Correct Packaging Deficiencies, in DLA direct solicitations and awards when inspection and acceptance is at destination, inspection/acceptance is at origin and Certificate of Conformance has been authorized, or when inspection and acceptance points are mixed and Certificate of Conformance is authorized.

46.470-1 Planning.

(90) The planning necessary to determine a "tailored" approach to Government contract quality assurance actions shall include, but not be limited to, consideration of the following:

(1) Possible effect of failure on health or safety of personnel, or on associated or related equipment;

(2) Tactical, strategic, or technical importance;

(3) Complexity, and the need for required reliability;

(4) Pertinence, completeness, and reliability of the contractor's quality records;

(5) Previous quality history of the contractor; and

(6) Unit cost.

46.471 Authorizing shipment of supplies.

The DLA Contracting Officer shall provide written notification to the Defense Contract Management Agency (DCMA) Administrative Contracting Officer (ACO) through a Quality Assurance Letter of Instruction (QALI) regarding any first time production items or suppliers, and any adverse supplier or item quality history. In the case of first time production items or first time suppliers, or when there is evidence of poor quality, the ACO shall not invoke ARP until positive performance history is established. If the ACO implements ARP procedures when positive performance history is established, the ACO shall notify the DLA Contracting Officer in writing when the letter which invokes ARP is issued to the contractor. If negative quality becomes evident during contract performance, the DLA Contracting Officer shall notify the ACO through a QALI. The ACO will revoke ARP until satisfactory performance is achieved, and shall notify the DLA Contracting Officer in writing when the letter which reinstates ARP is issued to the contractor.

46.490 Oversight of DoD supply chain integrity.

(a) Procedures for processing quality notifications (QNs).

(1) DLA buying activities shall ensure that—

(i) On-going reviews are being conducted to oversee compliance with cross-functional policies and procedures for processing/prioritizing quality notifications (QNs) (e.g., Product Quality Deficiency Reports (PQDRs), Supply Discrepancy Reports (SDRs); Government Industry Data Exchange Program (GIDEP) Alerts/Safe Alerts; etc.)

(ii) All activity personnel are being adequately trained to apply QN policies and procedures.

(2)(i) Acquisition specialist interfaces. The Product Specialist will contact the Acquisition Specialist (preaward and/or postaward) as required in accordance with mandatory procedures for processing quality notifications (see Technical-Quality Policy Deskbook in eWorkplace and TQ Job Aids). For example, the Product Specialist:

(A) May require the Acquisition Specialist to suspend open procurement actions (i.e., open PR, Outline Agreement (LTC), Purchase Orders (contracts)) pending investigation of a PQDR; and/or

(B) Will assign the QN to the correct acquisition specialist when the Product Specialist has investigated a SDR and determined the material should be returned to the contractor for repair or replacement.

(ii) Acquisition Specialists (postaward) who receive a workflow item in the Workflow Inbox related to a Supply Discrepancy Report (SDR) shall review and process the notification. Acquisition Specialists shall then notify the QN Coordinator (Test Coordinator) who assigned the task that it is complete within the workflow. However, SDRs associated with Counterfeit Material/Unauthorized Product Substitution (CM/UPS) cases must not be inadvertently completed prior to resolution of the case. Therefore, Acquisition Specialists shall carefully review all documentation or lists regarding reduction of aged SDRs and coordinate with the Product Specialist as necessary, to determine whether they are CM/UPS related. Any SDRs assigned to the CM/UPS Program Office shall not be altered, transferred, completed, or removed from workflows. CM/UPS SDRs shall only be maintained by the Product Specialists of record; or, for DLA Aviation and DLA Land and Maritime, the authorized personnel identified below:

(A) DLA Aviation Supply Chain: (804) 279-5821, and

(B) DLA Land and Maritime Supply Chain: (614) 692-4751, (614) 692-4751, (614) 692-8067; (614) 692-8730.

(b) Review procedures for high-risk items.

(1) DLA buying activities shall ensure that—

(i) On-going reviews are being conducted to identify FSGs/FSCs/NSNs that warrant additional risk mitigation;

(ii) FSGs/FSCs/NSNs are being identified based on appropriate considerations (e.g., those identified at 46.470-1);

(iii) Policies and requirements are being established for acquiring the identified FSGs/FSCs/NSNs, as appropriate; such as the following:

(A) FAR/DFARS/DLAD provisions and clauses;

(B) Quality assurance requirements (e.g., documentation of traceability, quality requirement (QML/QPL), Quality Assurance Provisions (QAPs), first article testing), etc.); and/or

(C) Policies requiring specified post-award actions (e.g., Product Verification Testing, Quality Assurance Letter of Instruction (QALI), etc.).

(iv) Requirements are being documented in the Material Master and/or by standard text object (STO) in the purchase order text (POT), as appropriate; and

(v) FSGs/FSCs/NSNs are being identified as excluded from PACE automated evaluation and award.

(2) Training and oversight. DLA buying activities shall ensure that—

(i) All activity personnel are being adequately trained to apply the policies in this section;

(ii) All acquisition personnel are being adequately trained to apply the requirements established for acquisitions of items identified in accordance with 46.490(b) (e.g., enforcing requirements for traceability documentation; evaluating traceability documentation to determine its adequacy and validity; etc.);

(iii) Internal controls are in place, and periodic reviews/audits are being conducted to ensure compliance with the policies in this section; and

(iv) Information relevant to risk mitigation trends and best practices, as generated from in-process contract reviews, internal and external procurement management reviews, and other sources, is being routinely disseminated to all activity personnel.

(c) Contract clause. The clause at 52.246-9066, Documentation of Traceability, shall be used in solicitations and awards, including when acquisitions are conducted using FAR Part 12, when the buying activity has (1) identified the FSGs/FSCs/NSNs being acquired as requiring additional risk mitigation; and (2) determined that any offeror not identified as an approved source in the item description shall be required to submit documentation prior to award to establish the identity of the item being offered and its manufacturing source. At the discretion of the buying activity, the language in the clause may be incorporated into a Standard Text Object (STO), which will be displayed in the item description in the solicitation and award. The clause at 52.246-9066 is intended for general application to any item or group of items. However, if a STO is used, the buying activity may elect to include additional references or requirements specific to the items or groups of items being acquired (e.g., applicable military specifications, additional clauses, Certification of Conformance, etc.).

SUBPART 46.5 – ACCEPTANCE

(Revised July 28, 2011 through PROCLTR 2011-21)

46.502 Responsibility of Acceptance.

(90) Use 52.246-9035, Acceptance of Medical and Laboratory Instrumentation, in equipment solicitations and awards when acceptance at destination is required.

(91) Use 52.246-9036, Acceptance of Installation for Medical and Laboratory Instrumentation, in capital equipment solicitations and contracts for x-ray equipment when installation at destination is required.

46.503 Place of acceptance.

(a) Use 52.246-9007, Inspection and Acceptance at Destination, as needed, to indicate destination inspection and acceptance in solicitations and contracts for supplies.

(b) Use 52.246-9008, Inspection and Acceptance at Origin, as needed, to indicate origin inspection and acceptance points in solicitations and contracts for supplies. Use ALT I for acquisitions above the SAT whenever subsequent shipments will undergo inspection and acceptance at destination.

(c) When a contract provides for Government contract quality assurance at source, the place of manufacture (if different from the prime contractor) will be designated for each contract line or subline item. This is necessary to provide for automatic distribution of contract documents to QARs cognizant of plant locations other than the prime contractor.

46.503-90

Insert the clause at 52.246-9029, Inspection and Acceptance Points, as needed, to indicate mixed inspection and acceptance points in solicitations and contracts for energy and supplies.

46.503-90

Use 52.246-9040, Inspection and Acceptance - Supervision of Installation, when supervision by contractor of equipment installation at destination is required. Use 52.237-9004 with this clause.

46.503-91

Use this clause, 52.246-9080, Points of Inpection and Acceptance (DLA Energy ), in solicitations/contracts at the Contracting Officer’s discretion. Primarily for use by, but not limited to, bulk lubes and aerospace energy for propellants, cryogenics and gases.

46.504 Certificate of Conformance.

46.504-90

Use 52.246-9014, Certificate of Conformance, in Subsistence solicitations and awards except perishable Indefinite Delivery Type Contracts (IDTC) (other than pork items), brand name resale, fresh fruits and vegetables, warehouse services and non-food components of operational rations.

46.504(a)(90)

Use 52.246-9042, Documentation of Traceability - QPL/QML Integrated Circuits, Hybrid Microcircuits, and Semiconductor Devices, in all solicitations and awards (regardless of point of inspection) for QPL or QML integrated circuits or hybrid microcircuits procured in accordance with MIL-M-38510, MIL-PRF-38534 or MIL-PRF-38535, and semiconductor devices procured in accordance with MIL-PRF-19500.

46.504-91

Insert the clause at 52.246-9081, Certificate of Conformance (DLA Energy), in solicitations and awards for DLA Energy acquisitions of bulk lubes, overseas PC&S, and aerospace energy. Use when the conditions at FAR 46.504 apply.

46.504-92 Level I Material Certification (DLA Maritime-Norfolk).

Insert the clause in full text at 52.246-9094, Level I Material Certification, in all DLA Maritime-Norfolk solicitations and awards for level I items.

SUBPART 46.6 – MATERIAL INSPECTION AND RECEIVING REPORTS

46.601 General.

46.601-90

Use 52.246-9018, Shipping Documents Supplied to Assembly Contractors, in acquisitions for MRE and other tray pack semi-perishable items.

46.601-91

Use 52.246-9019, Material and Inspection Report, with DFARS 252.246-7000 when a Material Inspection and Receiving Report (DD Form 250) is required.

46.601-92

Use 52.246-9020, Distribution of Material Inspection and Receiving Report, in all solicitations and contracts for Foreign Military Sales.

46.601-93

Insert the clause at 52.246-9070, Commercial Bills Of Lading (Bulk)(DLA Energy), in DLA Energy solicitations and awards for bulk fuels.

SUBPART 46.7 – WARRANTIES

46.706-90

Use 52.246-9056, Warranty Period for Overseas Shipments, in acquisitions for overseas shipment.

46.708-90

Use 52.246-9057, Warranty of Data, in acquisitions when a warranty for technical data, excluding computer software and data incidental to contract administration is required.

46.709-90

Use 52.246-9053, Commercial Warranty, in solicitation for items that may have a commercial warranty available from the manufacturer. If a contractor responds there is a commercial warranty available, obtain a copy from the contractor to include as an attachment to award.

46.709-91

Use 52.246-9059, Warranty of Supplies (Commercial Items), in medical supply chain solicitations and contracts for standard commercial items instead of 52.246-9058, e.g., brand name, brand name or equal.

46.709-92

Use 52.246-9060, Warranty of Supplies (Commercial Items)(Fill-In), in medical supply chain solicitations and contracts for supplies when acquiring commercial items, e.g., brand name, brand name or equal.

Contract Clauses

(90) Use 52.246-9037, Orders for Repair of Medical Equipment, in purchase orders for repair of medical equipment.

52.246-9052, Warranty of Supplies, may be used in solicitations, contracts and purchase orders for biomedical equipment

46.710-91

Use 52.246-9054, Warranty – Acceptance of Supplies, in all solicitations and in awards for any one of the following: when purchasing surplus, when E46A17 (52.246-15, Certificate of Conformance) is in the award, or when acceptance is at destination.

46.710-92

Use 52.246-9055, Warranty of Supplies and Virtual Prime Vendor, in solicitations for Virtual Prime Vendor contracts which contain an Order to Ship Time (OST) or Contractor Processing Time (CPT) performance metric.

46.710-93

Use 52.246-9058, Warranty of Supplies, in solicitation and contracts when acquiring Medical items which contain chemicals, drugs, pharmaceuticals, biologicals, antibiotics, cosmetics and any other items which are used in or on the body or for which the integrity of each original lot and the separate identification of each such lot must be maintained from moment of manufacture until final complete usage or disposal. Do not use for commercial items.

46.710-94

Use 52.246-9061, Warranty of Industrial Plant Equipment (IPE) - FSG 34, in solicitations and contracts for FSG 34 IPE - Industrial Plant Equipment new procurements, repair or rebuild/remanufacture/retrofit.

46.710-95

Use 52.246-9063, Warranty of Supplies, Extended (66 Months), in solicitations and contracts for NSNs 6110-01-246-7177 and 6110-01-246-7178 only.

46.790 Record of warranty actions.

When warranty actions have been initiated under contracts containing warranty clauses in accordance with FAR Subpart 46.7 (DFARS Subpart 246.7), it is essential all DSCs maintain a record of these warranty actions. This record is necessary to help determine the usefulness of the warranty clause versus the cost of administering the warranty actions. The record will be maintained in a central location on a fiscal-year basis. No more than two prior fiscal years' records will be retained. The record shall contain as a minimum the following information:

(a) Date and reason warranty was exercised;

(b) Contract number;

(c) Contractor;

(d) Dollar value of material covered by warranty;

(e) Disposition of material or other consideration obtained; and

(f) Date warranty action completed.

SUBPART 46.8 – CONTRACT LIABILITY FOR LOSS OF OR DAMAGE TO PROPERTY OF THE GOVERNMENT

46.805 Contract Clauses.

46.805(a)(90)

Use 52.246-9041, Government Loss or Damage, in solicitations when contractor installation of equipment is required.