FAR 52.246-4 — Inspection of Services — Fixed-Price

This clause gives the government the right to inspect and test services performed under a fixed-price contract, and to require reperformance of nonconforming services at no additional cost.

Clause
FAR 52.246-4
Applies to
Fixed-price service contracts
Flows down to subs
Yes
Primary risk
Rejected work and reperformance costs

Key takeaways

  • Read the clause as incorporated in your contract — tailoring and alternates change obligations.
  • Flowdown obligations are your responsibility; a noncompliant subcontractor is your problem.
  • Document compliance contemporaneously; after-the-fact reconstruction rarely satisfies auditors.
  • When a clause is unclear, ask the contracting officer in writing before award, not after.

What the clause requires

The government may inspect services at reasonable times and places, and if services do not conform to contract requirements, the government may require reperformance or reduce the contract price to reflect the diminished value, at its option.

How to comply in practice

Build your own quality control checkpoints ahead of government inspection points, document service delivery against the performance work statement continuously, and respond quickly and in writing to any deficiency notice.

Common mistakes

Contractors dispute a deficiency finding verbally without documenting their own service records, leaving no evidence to counter the government's inspection report during a price reduction dispute.

FAQ

Can the government reduce my price instead of requiring reperformance?

Yes, the clause gives the government the option to accept a price reduction instead of reperformance.

Who pays for reperformance?

The contractor bears the cost of reperforming nonconforming services at no additional charge to the government.

Can I dispute an inspection finding?

Yes, through the Disputes clause process, supported by your own contemporaneous quality documentation.

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