Government Acceptance of Non-Conforming Product

Since you mention vehicles I am wondering if the contract was awarded under FAR Part 12 and if so is FAR 52.212-4 included in the contract and have you read the paragraph (a) on "Inspection/Acceptance".

If the Government knowingly accepts non-conforming vehicles (no waiver, no reduction in contract price), does that acceptance waive any obligation on the contractor's part to correct / retrofit already-delivered vehicles ? Does the acceptance constructively waive the requirement on future vehicles ?

If your contract includes FAR 52.246-2, Inspection of Supplies--Fixed-Price, (as opposed to 52.212-4, which explicitly articulates "post-acceptance rights") then, as stated in paragraph (k), "[a]cceptance shall be conclusive, except for latent defects, fraud, gross mistakes amounting to fraud, or as otherwise specifed in the contract."

Unless there was an express waiver of contract requirements, or a repeated pattern of practice of accepting non-conforming supplies, then the one-time acceptance would not constructively waive the requirement on future vehicles.

Thanks for the replies. The contract has FAR 52.246-2, not 52-212-4. The acceptance of non-conforming vehicles has been going on for about 1 1/2 years, as our company (and the Government) have been working to resolve the issue.