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    Is there a FAR reference that talks to the requirements that in the case of a Government Agency such as DCMA Quality Assurance receives a Delegation to inspect at a Prime contractors Sub-contractor facility in a different state... however when the purchase order is past the delivery due date... the prime contractor refuses to update the purchase order because they don't want to hurt their subs overall deliverable rating? What is the governments' reference to present to the prime contractor for compliance? or is the Government still cleared to accept past the due delivery date in the purchase order?


    Answer

    This is a great question.

    But it all really boils down to this, is the subcontractor’s delinquency on their purchase order with the prime impacting the prime contractor’s delivery schedule or period of performance required in the prime contract?

    Remember, the FAR and DFARS does not apply to contractors, only the terms and conditions in the contract apply to contractors.  I will assume the prime contract is formatted in accordance with the uniform contract format (UCF).  Look in Section E – Inspection and Acceptance for what clauses are associated with that (e.g. FAR 52.246-3 Inspection of Supplies-Cost Reimbursement) these will tell you what the rights, remedies, and responsibilities for both the contractor and the government.  Look in Section F – Deliveries or Performance and again look at the clauses referenced there.

    That said, there are a number of FAR/DFARS references about quality assurance delegations and conducting government quality assurance at source (your scenario) and evaluation of prime contractor oversight of subcontractors in these situations that might be helpful.

    Your scenario is one of a “secondary delegation” of contract administration: See FAR 42.202(e) or FAR 42.202(f).  This will bring you to FAR 44.304; the ACO at the primary CAO may be interested in what you are observing regarding late delivery dates.

    FAR 46.402 Government contract quality assurance at source and DFARS 246.402 Government contract quality assurance at source.

    If the prime contractor has flown down a Criticality Designator to the sub, see DFARS 242.1104(a)(iii)(D), delinquencies may need to be monitored in accordance with the production plan.

    Since you mentioned DCMA in your scenario. A non FAR/DFARS reference is DCMA Manual 2101-01 – Acceptance.

    In conclusion, depending on what you find in the prime contract and the impact on the prime contractors schedule; this may be a case where your inspection is just about the quality (specifications, etc.) inspection and acceptance.

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