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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