When does a contractors obligations under FAR 52.246-26 Reporting Nonconforming Items end?
Started by 2Bitgreenhorn · Oct 16, 2025 · 5 replies
- 2Original post
2Bitgreenhorn
Oct 16, 2025 · 7mo ago
Good day,
I am hoping to gain some clarity as to when a contractors obligation to comply with the non conforming items clause ends. The clause requires the contractor to actively monitor the GIDEP reports in order to screen contractor delivered items for counterfeits or major non-conformances. The clause also places an affirmative requirement to notify the contracting officer when a counterfeit item or major non-conformance is identified.
Does the contractors obligation to screen for and subsequently notify the Government of counterfeit or non-conforming items that may were delivered under a contract end upon the contract's completion, or do they extend in perpetuity beyond final delivery? Specifically must the deliverable items that were made under contracts that have already been closed be screened against the GIDEP reports? Thoughts on this with are welcomed,. Thank you!
- C
C Culham
Oct 16, 2025 · 7mo ago
2Bitgreenhorn said:
I am hoping to gain some clarity
I would consult legal counsel.
I did some research and it would appear that it is forever with regard to the current contract and any future contracts with the Feds. I say this as what I have found implies that with the clause an entity would revamp their inspection program to meet the clause requirements. I do realize that any entity that does both Fed and non-Fed contracts could do the process change for only Fed contracts. A business decision.
Here is one document I found. But again if you can not find something explicit in your own research (other comments here included) I would suggest legal counsel is your best route.
- 2
2Bitgreenhorn
Oct 16, 2025 · 7mo ago
Thanks for the reply C Culham. I work for a large defense contractor and the clause is in virtually all of our prime US Government contracts as well as our subcontracts to other large US Government prime contractor. I have no doubt that the Government would prefer contractors to monitor for counterfeits and non-conformances for anything ever delivered to the Government. As a practical matter though these GIDEP alerts for industry are fairly common, and to screen all BOM's etc. for closed contracts is a massive fishing expedition. In my view, taking the opinion that the notice requirements are in perpetuity is at odds with the inspection clauses for final and conclusive acceptance except for fraud, etc...
- R
Retreadfed
Oct 16, 2025 · 7mo ago
2Bitgreenhorn said:
the notice requirements are in perpetuity is at odds with the inspection clauses for final and conclusive acceptance except for fraud, etc...
Could a counterfeit item or nonconformance be an indicator of fraud?
- 2
2Bitgreenhorn
Oct 16, 2025 · 7mo ago
Could a counterfeit item or nonconformance be an indicator of fraud?
Quite possibly yes, but it would be incumbent on the Government to challenge acceptance for discovery of some latent defect, fraud, etc... I made the point about final acceptance as evidence that the contract is considered complete (FAR 4.804-4) with no continued obligation of performance.
- C
C Culham
Oct 16, 2025 · 7mo ago
2Bitgreenhorn said:
Thanks for the reply C Culham.
Sounds like you have a pretty good handle on the matter. Just wondering if you read the final rule for the clause as it might give you some additional detail to consider. You might even research the issuance in the Federal Register that occurred prior to the final rule. Best help I can offer.
Federal Register
Federal Acquisition Regulation: Reporting of Nonconformin...
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to require contractors and subcontractors to report to the Government-Industry Data Exchange Program certa