2024: The FAR - Federal Acquisition Regulations, Part 46

Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos

1. 2024 Webinar Series
The FAR:
Federal Acquisition Regulations
Understand the rules of the federal contracting game -and play to win!
J Schaus & Associates, WASHINGTON DC –[email protected]

2. 2024 Webinar Series
THE FAR
ABOUT THE SERIES:
We’ll cover each PART of THE FAR
Typically held Wednesdays and Fridays, 12pm
Complimentary
Recorded
Video Posted onYouTube
https://www.youtube.com/@jenniferschaus/videos
PPT Posted on Slideshare.net
Sponsor/Advertising Options Available
J Schaus & Associates, WASHINGTON DC –[email protected]

3. 2024 Webinar Series
THE FAR
J Schaus & Associates, WASHINGTON DC –[email protected]

4. 2024 Webinar Series
THE FAR
J Schaus & Associates, WASHINGTON DC –[email protected]

5. 2024 Webinar Series
THE FAR
ABOUT US:
Services for FED GOV CONTRACTORS:
Washington DC based;
Professional services for established gov cons;
Market Analysis to GSA Schedules;
Contract Administration, etc.
J Schaus & Associates, WASHINGTON DC –[email protected]

6. 2024 Webinar Series
THE FAR
ABOUT US:
Services for THOSE SELLING TO FED CONTRACTORS:
Newsletter Advertising;
Webinar Advertising;
Social Media Advertising;
Event Sponsorship;
Ask for our MEDIA KIT!
J Schaus & Associates, WASHINGTON DC –[email protected]

7. Marketing TO Federal Contractors?
Digital Advertising Offer
30,900+ NewsletterSubscribers
90% Federal Contractors
23% -32% Open Rates (12 Mo Ave)
4% -12% Click Rates (12 Mo Ave)
--------------------------------
[email protected] details

8. US SENATE –& -HOUSE OF REPRESENTATIVES
Scheduled Hearings

9. Gov Con –“Summer Shorts” 2024
Our Guest Speakers are Industry Leaders in Gov Con
EVERY DAY @ 12 PM ET
AUG 12-AUG 16
Teresa Moon Chelsea Meggitt Heather Tedd Karen LongDolores Kuchina-Musina

10. Gov Con –“Summer Shorts” 2024
Hot Topics In GovConwith Industry Leaders –[email protected]
EVERY DAY @ 12 PM ET
AUG 19-AUG 23
Aubrey Gainfort Stephanie Geiger Shauna Weatherly Shirley CollierJudy Bradt

11. Our Complimentary Webinars
With
APEX Accelerators

12. VA APEX ACCELERATOR -2024 TRAINING EVENTS
TUESDAY, AUGUST 6
th
1pm-3pm
Marketing 101 For Federal Contractors:
Attract The Primes, Attract The Government
REGISTER: https://virginiaptac.ecenterdirect.com/events/4452
TUESDAY, NOVEMBER 12
th
9.30am-11.30am
GSA Schedules:
Requirements, Proposal Prep and –What’s Next
REGISTER: https://virginiaptac.ecenterdirect.com/events/4456

13. MD APEX ACCELERATOR -2024 TRAINING EVENTS
THURSDAY, JUL 25
th
2024 10am-11am
Kickstart Your Federal Marketing
REGISTER: https://mdptac.ecenterdirect.com/events/15242
THURSDAY, DEC 5
th
2024 10am-11am
GSA Schedules -What You Need To Know
REGISTER: https://mdptac.ecenterdirect.com/events/15244

14. 2024 Webinar Series -THE FAR
THANK YOU TO OUR WEBINAR SPONSORS
J Schaus & Associates, WASHINGTON DC –[email protected]

15. The FAR –Federal Acquisition Regulations -WEBINAR SERIES 2024
JSchaus & Associates –Washington DC –[email protected]

16. Your “one stop” shop for Government Contracting assistance: go.gmu.edu/govcon
Leverage our training calendar at VirginiaAPEX.org& useful links
Register for free counseling: https://virginiaapex.org/services/counseling/
Reach us at [email protected] 703-277-7750
This APEX Accelerator is funded in part through a cooperative agreement with the Department of Defense.
Next Steps?

21. 2024 Webinar Series
THE FAR
THE FAR –PART 46
J Schaus & Associates, WASHINGTON DC –[email protected]

22. 2024 Webinar Series
THE FAR
FAR PART #46:
Quality Assurance
SPEAKER: Marc Snyderman
FIRM: OGC Solutions
EMAIL: [email protected]
J Schaus & Associates, WASHINGTON DC –[email protected]

23. 2024 Webinar Series -THE FAR
Inspection and Acceptance: FAR Part 46 –critical
•Inspection–determine the acceptability (or non-acceptability) of services of supplies furnished by
the contractor.
•Acceptance–government’s acknowledgement that a particular contract output or product
adequately meets the pertinent contractor requirement.
•Acceptance of items = payment from the government + transfer of risk of loss of work from
contractor to the government.
J Schaus & Associates, WASHINGTON DC –[email protected]

24. 2024 Webinar Series -THE FAR
J Schaus & Associates, WASHINGTON DC –[email protected]
Contractor
Delivers
•Contract sets forth delivery requirements
Government
Inspects
•Delegated by CO to COR or other designated official
Government
Accepts
•Unconditional acceptance
•Conditional acceptance
•Constructive acceptance
Government
Completes
Receiving Report
•Written evidence that indicates Government acceptance of supplies or
services delivered

25. 2024 Webinar Series -THE FAR
J Schaus & Associates, WASHINGTON DC –[email protected]
Unconditional
Acceptance
•Supplies/services
conform to
contract's
requirements
Conditional
Acceptance
•Supplies/services
do not conform to
contract and
must be
corrected by a
certain date.
Constructive
Acceptance
•Government has
not performed
inspection and/or
notified the
contractor or
rejection within a
certain number of
days (usually 7)

26. 2024 Webinar Series -THE FAR
FAR Part 46 Overview:
•46.1 General
•46.2 Contract Quality Requirements
•46.3 Contract Clauses
•46.4 Government Contract Quality Assurance
•46.5 Acceptance
•46.6 Material Inspection and Receiving Reports
•46.7 Warranties
•46.8 Contractor Liability for Loss or Damage to Property of the Government
J Schaus & Associates, WASHINGTON DC –[email protected]

27. 2024 Webinar Series -THE FAR
Subpart 46.1 -General
•Key Terms Defined: Acceptance, Conditional acceptance, Contract quality requirements,
“Counterfeit item,” Critical item, Critical nonconformance, Design activity, Government contract
quality assurance, Major nonconformance, Minor nonconformance, Off-the-shelf item, Patent
defect, Subcontractor, Suspect counterfeit item, and Testing
•Policy Responsibilities:
◦Agencies (46.102)
◦Contracting office (461.103)
◦Contracting administration office (46.104)
◦Contractor (46.105)
J Schaus & Associates, WASHINGTON DC –[email protected]

28. 2024 Webinar Series -THE FAR
Subpart 46.2 -Contract Quality Requirements
•General (46.201)
◦Contract Requirements
◦Alternative Inspection Methods
◦Specialized Inspections by the Government
◦Contractor Testing
•Types of Contract Quality Requirements (46.202)
◦Contracts for commercial products and commercial services (46.202-1)
◦Government reliance on inspection by contractor (46.202-2)
◦Standard inspection requirements (46.202-3)
◦Higher-level contract quality requirements (46.202-4)
•Criteria for use of contract quality requirements (46.203)
◦Technical Description
◦Complexity
◦Criticality
J Schaus & Associates, WASHINGTON DC –[email protected]

29. 2024 Webinar Series -THE FAR
Subpart 46.3 -Contract Clauses
•Relevant Clauses
◦Contractor inspection requirements (46.301), Fixed-price supply contracts (46.302), Cost-
reimbursement supply contracts (46.303), Fixed-price service contracts (46.304), Cost-
reimbursement service contracts (46.305), Time-and-material and labor-hour contracts
(46.306), Fixed-price research and development contracts (46.307), Cost-reimbursement
research and development contracts (46.308), Research and development contracts (short
form) (46.309), [Reserved] (46.310), Higher-level contract quality requirement (46.311),
Construction contracts (46.312), Contracts for dismantling, demolition, or removal of
improvements (46.313), Transportation contracts (46.314), Certificate of conformance (46.315),
Responsibility for supplies (46.316), Reporting Nonconforming Items (46.317)
•Responsibilities and Requirements:
◦Specific clauses (52.246-1 through 52.24-26) and their application
J Schaus & Associates, WASHINGTON DC –[email protected]

30. 2024 Webinar Series -THE FAR
Subpart 46.4 -Government Contract Quality Assurance
•General (46.401): QA is to determine that the supplies or services conform to contract
requirements, and QA surveillance plans are prepared in conjunction with a statement of work
•QA at/for:
◦Source (46.402) if performance at any other place would be uneconomical, destructive, or of
considerable loss
◦Destination (46.403):normally limited to inspection of the supplies or services under special
circumstances
◦At or below the simplified acquisition threshold (46.404): inspected at destination unless a
special situation exists
◦Subcontracts (46.405): only when conditions for QA at source are applicable and it is otherwise
required by the contract or in the Government’s interest
◦Foreign Governments (46.406): only when consistent with or required by legislation, executive
orders, or agency policies concerning mutual international programs
◦Single-agency assignments (46.408): FDA (drugs, biologics, and other medical supplies), DoA
(food except seafood), National Marine Fisheries Service of the DoC(seafood)
J Schaus & Associates, WASHINGTON DC –[email protected]

31. 2024 Webinar Series -THE FAR
TAKEAWAY 1: Know the Inspection Clause Included and Contract Requirements for Quality
1.Build your Quality Assurance Surveillance Plan (QASP) based on the inspection clause included in
the contract.
2.The QASP is not just a deliverable –it’s critical to inspection/acceptance
3.The QASP provides guidance to all government contract oversight personnel on contract surveillance
roles and responsibilities.
4.The QASP should have the what, when, and whoof inspection rights.
J Schaus & Associates, WASHINGTON DC –[email protected]

32. 2024 Webinar Series -THE FAR
Sub Subpart 46.407 Nonconforming Supplies or Services
•Contracting officer should reject supplies or services not conforming in ALL respects to contract
requirement
•Contracting officer ordinarily must give the contractor an opportunity to correct or replace
nonconforming supplies or services BUT the Government reserves the right to charge the contractor
the cost of Government reinspection and retests
◦Contracting officer ordinarily must reject supplies or services the when the performance is
critical or major or the supplies or services are otherwise incomplete
▪Minor nonconformances may be accepted, but the repeated tender of nonconforming
supplies or services must be discouraged
•Notices of rejection must include the reasons for rejection and be furnished promptly to the
contractor
J Schaus & Associates, WASHINGTON DC –[email protected]

33. 2024 Webinar Series -THE FAR
TAKEAWAY 2: Inspection Clause Rights
Inspection Clause gives broad rights to Government to inspect and test work performed or supplies
delivered, but it does NOT permit Government to perform inspection in a manner that unreasonably
interferes with contractor’s performance or that increase cost or amount of work required by the
contractor. The COR must avoid any action of inaction that might result in unreasonable intereference
or delay such as:
•Failing to review deliverables or make inspections in a timely manner
•Denying or failing to obtain contractor access to government premises on which contract work must
be performed
•Conducting inconsistent, multiple inspections
•Requiring a higher standard of performance than that established in the contract
•Unnecessarily directing the contractor to stop work (Only CO can issue stop work order)
•Directing contractor to perform work outside the scope
J Schaus & Associates, WASHINGTON DC –[email protected]

34. 2024 Webinar Series -THE FAR
Subpart 46.5 -Acceptance
•General (46.501)
◦Acceptance: acknowledgment that the supplies or services conform with applicable contract
quality and quantity requirements either before, during, or after delivery
▪The responsibility of the contracting officer (46.502)
▪Each contract shall specify the place of acceptance with QA at source ordinarily providing
for acceptance at source and with WA at destination ordinarily providing for acceptance at
destination (46.503)
•Certificate of conformance may be used in certain instances instead of source inspection (46.504)
•Titles shall pass to the Government upon formal acceptance and risk of loss, and damage to
supplies shall remain with the contractor until delivery of the supplies to a carrier, acceptance by the
Government, or delivery of supplies to the Government at the destination specified (46.505)
J Schaus & Associates, WASHINGTON DC –[email protected]

35. 2024 Webinar Series -THE FAR
Subpart 46.6 -Material Inspection and Receiving Reports
•General (46.601)
◦Agencies shall prescribe procedures and instructions to evidence Government inspection and
acceptance:
▪Use, preparation, and distribution of material inspection
▪Receiving reports
▪Commercial shipping document/packing lists
J Schaus & Associates, WASHINGTON DC –[email protected]

36. 2024 Webinar Series -THE FAR
TAKEAWAY 3: What happens after acceptance?
Once formal acceptance has occurred contractor is generally excused from further performance unless:
1) Otherwise specified in contract
2) Latent defects
3) Fraud or gross mistakes that amount to fraud
4) Warranty clauses
J Schaus & Associates, WASHINGTON DC –[email protected]

37. 2024 Webinar Series -THE FAR
Subpart 46.7 -Warranties
•General (46.702)
◦Principle purposes: to delineate the rights and obligations of the contractor and the Government
for defects and to foster quality performance while limiting benefits to cost commensuration
•Criteria for use of warranties (46.703) (note: the use of warranties is not mandatory): Nature and
use of the supplies or services, Cost, Administration and enforcement, Trade practice, and Reduced
requirements
•Use of a warranty shall be approved in accordance with agency procedures (46.704) and has
limitations (46.705)
•The contracting office shall consider the following guidelines when preparing warranty
terms and conditions (46.706): Extent of contractor obligations, Remedies, Duration of the
warranty, Notice, Markings, and Consistency
•Special cases: Pricing aspects of fixed-price incentive contract warranties (46.707), warranties of
data (46.708), and warranties of commercial products and commercial services (46.709)
•Contract clauses (46.710): the contracting officer may insert a clause substantially the same as the
clauses 52.246-17 to 52.246-21
J Schaus & Associates, WASHINGTON DC –[email protected]

38. 2024 Webinar Series -THE FAR
Subpart 46.8 -Contract Liability for Loss of or Damage to Property of the Government
•Scope of subpart (46.800): describes policies and procedures for limiting contractor liability that
occurs after acceptance and results from defects or deficiencies
◦Does not apply to commercial products and services (46.801)
•High-value item: has a high unit cost (exceeding $100,000 per unit) or is designated by the
contracting officer as a high-value item (46.802)
◦Government will not relieve the contractor of liability for loss of or damage to the contract end
item itself, except for high-value items (46.803)
▪Exception: when contractor liability can be preserved without increasing the contract price
▪Limitations: to the extent that contractor liability is expressly provided under a contract
clause, when a defect or deficiency results from willful misconduct, or to the extent that any
contractor insurance covers liability for loss or damage
•Contract clauses (46.805): for contracts that exceed the simplified acquisition threshold (not
required for acquisitions at or below the simplified acquisition threshold), the contracting officer shall
insert the appropriate clauses of 52.246-23 to 52.246.25
J Schaus & Associates, WASHINGTON DC –[email protected]

39. 2024 Webinar Series -THE FAR
TAKEAWAY 4: What are governments remedies if not accepted?
1.Standard inspection clauses do not have a requirement for Government to detail rejection; FAR
46.407(g) does. Its in best interest of Government to be specific and promptly communicate issues.
2.Government’s remedies are generally;
•Require contractor correction
•Correct defect itself or have it corrected by another contractor, charging original contractor for
expense
•Obtain a price reduction
•All situations are dealt with collaboratively with COR and CO
J Schaus & Associates, WASHINGTON DC –[email protected]

40. 2024 Webinar Series -THE FAR
Far Part 46 -Review
•Establishes QA initiatives in federal contracting to ensure contracted supplies and services meet
contractual standards
◦Contracting offices: verify compliance and address nonconformances
◦Contractors: responsible for controlling and inspecting the quality of their supplies or services
•QA is conducted by the government at appropriate times and locations to ensure contract
compliance
◦Acceptance confirms a satisfaction of contract requirements and can include warranties
◦Contract clauses outline contractor responsibilities and inspection requirements with liability for
government property loss or damage typically relieved post-acceptance except for high-value
items and certain conditions
J Schaus & Associates, WASHINGTON DC –[email protected]

41. 2024 Webinar Series
THE FAR
THANK YOU FOR ATTENDING!
FAR PART #46:
Quality Assurance
SPEAKER: Marc Snyderman, Esq.
FIRM: OGC Solutions
EMAIL: [email protected]
J Schaus & Associates, WASHINGTON DC –[email protected]

42. 2024 Webinar Series
THE FAR
Please subscribe to our YouTube Channel
for Gov Con Content Uploads
including THESE WEBINARS!
https://www.youtube.com/@jenniferschaus/videos
J Schaus & Associates, WASHINGTON DC –[email protected]

43. 2024 Webinar Series
The FAR:
Federal Acquisition Regulations
THANK YOU FOR JOINING US!
J Schaus & Associates, WASHINGTON DC –[email protected]