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FAR 52.246-26 Reporting Nonconforming Items: When the Clause Reaches Subcontractors

Certain suppliers can receive an express requirement to report nonconforming items—and to pass that requirement farther down the supply chain.

Quality clauses can create obligations beyond replacing a rejected part. FAR 52.246-26 is aimed at reporting specified nonconforming items and contains an express subcontract flowdown for particular categories of supplies and services.

A supplier should determine whether its deliverables fall within those categories rather than accepting a generic statement that every purchase order requires the clause.

The clause identifies covered subcontract categories

FAR 52.246-26 requires flowdown, subject to stated exceptions, for subcontracts involving items subject to higher-level quality standards, critical items for which use is appropriate, certain electronic parts or assemblies in DoD acquisitions above the applicable threshold, and services that furnish covered items. The clause also identifies exclusions, including specified commercial-product/service circumstances.

Official source: FAR 52.246-26 — Reporting Nonconforming Items.

Ask what makes your item covered

  • Is the item subject to a higher-level quality requirement?
  • Has the prime designated it as a critical item?
  • Does the DoD electronic-parts provision apply to the subcontract?
  • Is a service deliverable furnishing a covered physical item?
  • Does a stated exception apply?
  • Must the clause be flowed to your own suppliers?

Align reporting with your quality system

Contractual reporting should connect to existing nonconformance, quarantine, corrective-action, supplier-control, and escalation procedures. Employees need to know when an internal quality event also triggers an external contractual report.

Obtain prime-specific reporting instructions

If the prime requires a portal, form, point of contact, or shorter deadline in addition to the FAR clause, obtain those procedures before award. Missing reporting instructions are a document gap, not something the supplier should be expected to discover after a nonconformance occurs.