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    During top level assembly (higher level quality requirements apply), what inspection system(if any) do the COTS/Altered COTS fall under? Is the contractor required to develop some sort of acceptance criteria for the individual COTS items to meet the higher level quality requirements?


    The systen level item should have a higher level quality requirement per FAR 46.202-4 if the item is complex or critical.  Quality requirements also should be flowed down to their subcontractors and suppliers as appropriate.  Thus if the subcontractor is delivering a complex or critical item then they should have a higher level quality requirement on their contract.  If the item is truely commercial, then commercial standards may apply.  If the contractor then takes a commercial item and modifies it, then depending on the level of modification, the contractor may be required to place a higher level quality requirement on the modified part.  These requirements should be found in ISO 9000 or AS 9100 quality requirements.

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