Atlas STS Posted August 14, 2024 Report Share Posted August 14, 2024 We were just awarded a FFP production contract and had our kickoff meeting with our assigned DCMA team. We are a small business receiving performance based payments. Can you tell me which FAR/DFARS clause(s) to review that gives "each of these government officials full access to your facility at any time to perform contract administration functions"? I knew audits were a possibility and anticipate regular inspections, but I'd like to understand the full picture of that statement. Quote Link to comment Share on other sites More sharing options...
here_2_help Posted August 14, 2024 Report Share Posted August 14, 2024 Have you read the contract--especially Sections H and I? Do you understand what each clause means? If not, I urge you to obtain advice from a competent government contracts attorney or consultant. Why? Because all those clauses are part of the deal you agreed to when you signed the contract. I don't know all the clauses in your contract, but I'm willing to bet that, if you are receiving performance-based payments, you will find the clause 52.232-32 in Section I. If it's there (and I bet it is), then visit www.acquisition.gov and type the clause number into the the "Regulations Search" function (found under "Tools"). Look at paragraphs (h) and (i) of that clause. Quote (h) Records and controls. The Contractor shall maintain records and controls adequate for administration of this clause. The Contractor shall have no entitlement to performance-based payments during any time the Contractor’s records or controls are determined by the Contracting Officer to be inadequate for administration of this clause. (i) Reports and Government access. The Contractor shall promptly furnish reports, certificates, financial statements, and other pertinent information requested by the Contracting Officer for the administration of this clause and to determine that an event or other criterion prompting a financing payment has been successfully accomplished. The Contractor shall give the Government reasonable opportunity to examine and verify the Contractor’s records and to examine and verify the Contractor’s performance of this contract for administration of this clause. Okay? Now ... for your own protection, please get someone to advise you because coming here isn't going to be enough to ensure you are meeting the terms of the deal. Quote Link to comment Share on other sites More sharing options...
C Culham Posted August 14, 2024 Report Share Posted August 14, 2024 I will add the inspection clause as a possibility as well if DCMA is doing quality assurance as well. If a commercial product or service acquisition and Federal Acquisition Regulation (FAR) Clause 52.212-4 is in the contract refer to paragraph (a). No angle for DCMA correct? But as noted in the previous post by her-2-help another clause may give the authority. BUT If the contract contains a FAR 52.246-?? clause it may also provide the authority for onsite. By example this quote from paragrach (c) of FAR 52.246-2 "The Government has the right to inspect and test all supplies called for by the contract, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. A further read of the clause would support that "any time" is not quite true as the the inspections are to be done in a manner that will not "unduly delay" the work. Operative ideal is that you and DCMA should set up great communications that form a cooperative manner for their oversight of the contract. Quote Link to comment Share on other sites More sharing options...
policyguy Posted August 14, 2024 Report Share Posted August 14, 2024 Recommend you review the policy at DFARS Subpart 242.2 Contract Administration Services. Here's a link to the policy: https://www.acquisition.gov/dfars/subpart-242.2-contract-administration-services I hope this helps. Quote Link to comment Share on other sites More sharing options...
Atlas STS Posted August 14, 2024 Author Report Share Posted August 14, 2024 @here_2_help Thank you for your feedback and yes, I have read through all clauses in our contract in detail. I wish I could state that I know what each clause means, but if your reading of 52.232-32 (h) and (i) means "each of these government officials full access to your facility at any time to perform contract administration functions" then I do not. @C Culham 52.246-2 is present and I understood the requirement to perform periodic inspections as required by the government. Again, I do not read anything in there that says they have full run of the facility at any time (e.g. they have access to those areas necessary to inspect at a negotiated time). I do appreciate both of you pointing out these clauses. I was familiar with both (albeit perhaps not fully understanding the level of access they suggest), but was concerned there was another clause that made such blanket claims of access that I wasn't aware of. Quote Link to comment Share on other sites More sharing options...
Retreadfed Posted August 14, 2024 Report Share Posted August 14, 2024 18 hours ago, Atlas STS said: "each of these government officials full access to your facility at any time to perform contract administration functions"? You put quotes around this statement. Who made this statement and in what context? Quote Link to comment Share on other sites More sharing options...
Atlas STS Posted August 14, 2024 Author Report Share Posted August 14, 2024 @Retreadfed after our handover/kickoff meeting with DCMA team assigned, we were provided a letter with a list of government POCs with that statement. Quote Link to comment Share on other sites More sharing options...
ji20874 Posted August 14, 2024 Report Share Posted August 14, 2024 Atlas says, "52.246-2 is present and I understood the requirement to perform periodic inspections as required by the government. Again, I do not read anything in there that says they have full run of the facility at any time (e.g. they have access to those areas necessary to inspect at a negotiated time)." FAR 52.246-2, para. (c), says, "The Government has the right to inspect and test all supplies called for by the contract, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. The Government shall perform inspections and tests in a manner that will not unduly delay the work." Atlas, I think you may err in your thought that the Government must negotiate with you for inspection times. Doesn't the clause that you agreed to allow the government, as the buyer, to have largely unfettered inspection privileges? Quote Link to comment Share on other sites More sharing options...
Atlas STS Posted August 14, 2024 Author Report Share Posted August 14, 2024 @ji20874 I am in agreement that we are subject to inspections as described in FAR 52.246-2. I may be wrong, but I don't see anything about full facility access at any point and statements like "to the extent practicable" and "in a manner that will not unduly delay the work" somewhat tempers "at all places and time". I took "at all places and times" to make it clear that it does not only include acceptance inspection (e.g. throughout the production process). To all who have responded, I am very appreciative. I wanted to make certain there wasn't a contract clause that I wasn't aware of that used the phrase "full access to your facilities at any time" as that seemed a level of access that I was not reading into the PBP clause or the Inspection clause. Now that I know what clauses this statement applies to, I am better able to understand their intent of that statement. Quote Link to comment Share on other sites More sharing options...
Neil Roberts Posted August 14, 2024 Report Share Posted August 14, 2024 19 minutes ago, ji20874 said: Atlas, I think you may err in your thought that the Government must negotiate with you for inspection times. Doesn't the clause that you agreed to allow the government, as the buyer, to have largely unfettered inspection privileges? My experience is that under all "normal" FAR/DFARS inspection/access clauses, we were able as contractor to negotiate reasonable times and days. For example, if the facility administration hours are 7-3:42, those are the reasonable ballpark hours, however actual time and days were negotiated between the parties based on what is reasonable between them. I don't think any of the clauses provides unfettered discretion to the government. Quote Link to comment Share on other sites More sharing options...
joel hoffman Posted August 15, 2024 Report Share Posted August 15, 2024 All the more important to develop good working relationships between government and contractor… Quote Link to comment Share on other sites More sharing options...
C Culham Posted August 15, 2024 Report Share Posted August 15, 2024 @Atlas STS As this is the Beginners Forum I may be going above and beyond but in light of the continued discussion and your subsequent posts I will offer what I am going to call my candid view. Understanding that you have read your entire contract and are trying to align it with what you have said is explicit or even exact language of the letter, I believe, based on my experience as a CO, that the letter is not necessarily wrong worded. Remember a CO (and now DCMA) have a responsibility to ensure that not only the contractor is performing and quite honestly not cheating the government nor say the taxpayer. In this light it would seem a CO does have "full access to your facilities at any time". Yet there is a reasonablness context to the statement as well that in my view applies to both sides. By example if I as DCMA show up during work hours unannounced are you going to bar the door and tell me to go away? What if I show up after your work hours and request access what then? In the end my thought is this and dovetails off of some comments made. If the government does attempt to flex their muscle with unreasonable discreation you as the contractor are left with a choice, bar the door or allow the access and then exercise your rights under the contract in filing a claim for the governments breach of contract (unduly delayed the work and/or unreasonably requested access). As has been implied by some of the posts one would hope you never experience such a situation and reason, good communication, and a appropriate contract relationship is forged where DCMA can do their thing, and everyone's expectations under the contract are achieved. All said I too think the wording is a little strong and does not reflect the four corners of the contract per say but in the end I would jump past them and work towards the best contractural relatiionship possible. Quote Link to comment Share on other sites More sharing options...
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