Contract Quality Requirements

April 13, 2006

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When the contracting officer issues a sealed bid (IFB) or a request for proposal (RFP), the solicitation will specify the quality provisions that will be required by the government. Every solicitation or bid will include one of four basic categories of QA coverage for assuring conformance of products and services to contract requirements:

Contractor's existing quality assurance system (applicable to contracts for commercial items). When the government buys commercial items, it may rely on the contractor's existing quality assurance system, without government inspection and testing. However, if customary market practices for the commercial item being bought include in-process inspection, then the government may do some inspection and testing by its own personnel. Any in-process inspection conducted by the government must be conducted in a manner consistent with commercial practice.
Inspection by the contractor (applicable to contracts for non-commercial items $100,000 or less). When a contract for non-commercial items (i.e., items built to government specs) is expected not to exceed the simplified acquisition threshold of $100,000 or less, the government may specify that the contractor is responsible for performing all inspections and tests necessary to substantiate that supplies or services furnished conform to contract quality requirements. However, the government may impose stricter requirements if it has special needs that require a greater degree of quality assurance.
Standard inspection requirements (applicable to contracts for non-commercial items over $100,000). When a contract for non-commercial items is expected to exceed $100,000, the government may require the contractor to provide and maintain an inspection system that is acceptable to the government. The government also has the right to conduct inspections and tests while work is in progress and to require the contractor to keep and make available to the government complete records of its inspection work. Here we are talking about more complex items, such as sub-assemblies, minor components, or items critical to function or safety.
Higher-level quality standards (applicable to complex or critical items; contracts may be for less than $100,000). When a contract is for complex or critical items, higher-level requirements are applicable. The contracting officer is responsible for identifying the higher-level standard(s) that will satisfy the government's requirement. Examples of higher-level standards that the contracting officer may cite are ISO 9001, 9002, or 9003; ANSI/ASQC Q9001, Q9002, or Q9003; QS-9000; AS-9000; ANSI/ASQC E4; and ANSI/ASME NQA-1. (We discuss some of these standards in more detail, below.) This quality level would be required when it is important for control of work operations, in-process controls, and inspection or attention to such factors as organization, planning, work instructions, documentation control, etc.