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  • Question

    Can a contractor bill monthly/quarterly on a firm-fixed-price contract utilizing a Certificate of Conformance attached to a DD 250?


    Answer

    If the contractor is delivering an end item upon completeion, they can submit an invoice for that item upon delivery with the DD 250 and Certificate of Conformance.  You will want to state in plain language in Section G how and when to invoice.  You can also have your CLIN structure in Section B be clear as to what the deliverables are.

    See http://guidebook.dcma.mil/77/dc05-244DD Form 250 Guidance for the Contractor.htm for DD 250 guidance for a contractor.

    See DFARS  246.370 Material inspection and receiving report.  (a) Use the clause at 252.246-7000, Material Inspection and Receiving Report, in solicitations and contracts when there will be separate and distinct deliverables, even if the deliverables are not separately priced.(b) When contract administration is retained by the contracting office, the clause at 252.246-7000, Material Inspection and Receiving Report, is not required for— (1) Contracts awarded using simplified acquisition procedures; (2) Negotiated subsistence contracts; (3) Contracts for fresh milk and related fresh dairy products; (4) Contracts for which the deliverable is a scientific or technical report; (5) Research and development contracts not requiring the delivery of separately priced end items; (6) Base, post, camp, or station  ontracts; (7) Contracts in overseas areas when the preparation and distribution of the DD Form 250, Material Inspection and Receiving Report, by the contractor would not be practicable. In these cases, arrange for the contractor to provide the information necessary for the contracting office to prepare the DD Form 250; (8) Contracts for services when hardware is not acquired as an item in the contract; and (9) Indefinite delivery type contracts placed by central contracting offices which authorize only base, post, camp, or station activities to issue orders.

    See FAR 46.504 -- Certificate of Conformance.A certificate of conformance (see 46.315) may be used in certain instances instead of source inspection (whether the contract calls for acceptance at source or destination) at the discretion of the contracting officer if the following conditions apply: (a) Acceptance on the basis of a contractor’s certificate of conformance is in the Government’s interest.(b)(1) Small losses would be incurred in the event of a defect; or (2) Because of the contractor’s reputation or past performance, it is likely that the supplies or services furnished will be acceptable and any defective work would be replaced, corrected, or repaired without contest. In no case shall the Government’s right to inspect supplies under the inspection provisions of the contract be prejudiced.

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