Most government contracts will include a quality control inspection and acceptance clause. Basically, a government agency has the right to inspect the goods and/or services being delivered to them prior to the contract completion. An inspection clause protects the agency by allowing it time to spot and correct defects or flaws before completion; it also protects the contractor, as inspection standards are laid out in the contract and cannot be altered to a higher standard after the fact.
When quality testing takes place, the agency will be checking for three primary attributes: quality, quantity and timeliness. The inspection and acceptance clause in the contract should specify standards for all three, as well as the details of when, how and where quality testing will occur. Once final inspection has been completed to everyone's satisfaction, the agency will grant the products or services "final acceptance." After acceptance has been granted it becomes much more difficult for the agency to reject the work or goods, and its rights in that respect become much more limited.
U.S. law gives all buyers the right to inspect goods before purchase, and that includes government agencies. The inspection and acceptance clause of a government contract will therefore give the agency fairly broad rights when it comes to an inspection. An example of an inspection clause can be found in Part 52.246-2 of the FAR:
"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. The government assumes no contractual obligation to perform any inspection and test for the benefit of the Contractor unless specifically set forth elsewhere in this contract."
Note the second part of this clause. The agency is entitled to quality testing, but just because it has the right to inspect doesn't necessarily mean that it will inspect — it's under no obligation to do so. In these situations, it's important to remember that a lack of quality control inspection by the agency does not absolve the contractor of the quality standards already set forth in the contract. The best strategy is to assume that there will be an inspection, and plan accordingly.
The agency is responsible for arranging, conducting and paying for its own inspection procedures. If the contractor wishes to conduct a separate inspection for its own purposes, it's free to do so at its own expense. However, if the contractor fails an initial inspection, it may be expected to cover the costs of re-inspection after errors have been corrected. Keep in mind that passing one inspection, or part of an inspection, does not guarantee final acceptance; multiple tests may be necessary to fully inspect the products or services.
Just as it's the agency's responsibility to conduct quality control inspection in a time, place and manner that does not delay or overly inconvenience the contractor, the contractor should also make every reasonable accommodation for quality testing. Failure to do so could result in a breach of the inspection/acceptance clause. Remember that quality testing is in place to protect both parties.
