Full and Open Acquisition, in practice

FAR clauses/Part 46/Checked 15 Sep 2026

FAR 52.246-2
Inspection of Supplies—Fixed-Price

Clause date
AUG 1996
Prescribed at
FAR 46.302. Insert in solicitations and contracts for supplies, or services involving the furnishing of supplies, when a fixed-price contract is contemplated and the amount is expected to exceed the SAT (optional at or below the SAT); Alternate I for fixed-price incentive, Alternate II for fixed-ceiling-price with retroactive price redetermination.
Applies to
Fixed-price supply contracts above the SAT (optional at or below).
Flowdown
No flowdown required
52.246-2 contains no subcontract flowdown paragraph. It is not listed in 52.244-6(c)(1) or 52.212-5(e)(1).
Full text
FAR 52.246-2 on Acquisition.gov

… (k) Inspections and tests by the Government do not relieve the Contractor of responsibility for defects or other failures to meet contract requirements discovered before acceptance. Acceptance shall be conclusive, except for latent defects, fraud, gross mistakes amounting to fraud, or as otherwise provided in the contract. …

From the clause · Codified FAR · FAC 2026-01

Why it matters: Once the Government accepts, its remedies narrow to latent defects, fraud, gross mistakes amounting to fraud, or what the contract otherwise provides, such as a warranty, so inspection before acceptance is the real leverage.

This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.

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