(a) For solicitations issued and contracts awarded by FAS that will exceed the simplified acquisition threshold and include the clause at 52.246-2, Inspection of Supplies– Fixed-Price:

           (1)  The contracting officer shall insert the clause at 552.246-70, Source Inspection by Quality Approved Manufacturer, in solicitations and contracts that provide for source inspection for the Stock and Special Order Programs.

           (2)  The contracting officer may authorize inspection and testing at manufacturing plants or other facilities located outside the United States, Puerto Rico, or the U.S. Virgin Islands, under paragraph (a)(1) of the clause at 552.246-70 under any of the circumstances listed below after coordinating the authorization with QVOC and documenting the authorization in the file.

                (i)  Inspection services are available from another Federal agency with primary inspection responsibility in the geographic area.

                (ii)  An inspection interchange agreement exists with another agency for inspection at a contractor’s plant.

                (iii)  Other considerations will ensure more economical and effective inspection consistent with the Government’s interest.

      (b) When the estimated value of the acquisition is below the simplified acquisition threshold and will include the clause at 52.246-2, Inspection of Supplies—Fixed-Price, insert the clause at 552.246-70, Source Inspection by Quality Approved Manufacturer only:

           (1)  In solicitations and contracts that support the Wildfire program.

           (2)  In contracts when a pattern of acquisitions demonstrates an ongoing relationship with the contractor.

For solicitations and contracts issued by FAS, if Government personnel at the source will perform inspection, insert 552.246-71, Source Inspection by Government.

The contracting officer shall include the clause at 552.246-78, Inspection at Destination (July 2009) in supply contracts that require inspection at destination.