Recommending Rejection If Products Do Not Conform to Requirements

When the COR recommends rejection of items received, what is the first step he or she must take?

A notice of rejection must be furnished promptly to the contractor. The notice may be written or delivered verbally by the COR, followed by written confirmation. However, see Question 315 regarding circumstances under which the notice must be in writing.

What must the notice of rejection include?

The COR must include the following information in the notice of rejection:

The reasons for rejection of the item(s) and

A stated amount of time within which the contractor must reply.

When must the notice of rejection be in writing?

The notice of rejection must appear in writing if:

Supplies or services have been rejected at a place other than the contractor's plant

The contractor persists in offering nonconforming supplies or services for acceptance

Delivery or performance was late without an excusable delay.

A written notice of rejection requires a written receipt from the contractor.

How does a notice of rejection affect the contractor's delivery schedule?

A notice of rejection does not extend the specified delivery schedule, and the contractor remains obligated to provide supplies or services that conform to the contract within that delivery schedule.

What information should the COR provide the CO regarding recommended rejection?

When the COR has recommended rejection of deliverables, the CO should be provided with documentation regarding:

The nature of government contract quality assurance actions, including:

- The number of observations made of the contractor's work and work site

- Actions taken to notify the contractor of nonconformances

The acceptability of the products or the processes, including:

- Number and type of defects

- Impact of the defects on the government's requirements

Any actions taken by the contractor to correct defects.

Assisting the CO in Evaluating the Contractor's Reply to a Notice of Rejection

How may a contractor reply to a notice of rejection?

A contractor may reply to a notice of rejection by:

Submitting a proposal to repair or correct the work

Submitting a proposal to provide a downward adjustment in price as a basis for acceptance

Refusing to repair or correct the work or to offer any consideration to the notice of rejection.

If the contractor submits a proposal in response to a notice of rejection, what are the COR's resulting responsibilities?

A COR can assist the CO in evaluating the contractor's new proposal by:

Providing advice concerning the safety and performance of the proposed items

Evaluating whether acceptance of the supplies or services would be in the government's best interest after repair, correction, or price adjustments are made

Providing supporting rationale for rejecting or accepting the contractor's proposal

Attending any negotiations to respond to the contractor's positions.

Using Past Performance Information and Evaluating and Documenting Performance

What is past performance information?

Past performance information is relevant information, for future source selection purposes, regarding a contractor's actions under previously awarded contracts. The information includes the contractor's:

Record of conforming to contract requirements and to standards of good workmanship

Record of forecasting and controlling costs

Adherence to contract schedules, including the administrative aspects of performance, such as reporting and responding promptly and adequately to questions and requests for information/action from the government

History of reasonable and cooperative behavior and commitment to customer satisfaction

Business-like concern for the customer's interest.

See Chapter 4, Evaluating Past Performance, for basic policy information and other considerations related to past performance.