Do not require Government contract quality assurance at source for contracts or delivery orders valued below $400,000, unless—

1. (1) Mandated by DoD regulation;
2. (2) Required by a memorandum of agreement between the acquiring department or agency and the contract administration agency; or

3. (3) The contracting officer determines that—

   1. (i) Contract technical requirements are significant (e.g., the technical requirements include drawings, test procedures, or performance requirements);

   2. (ii) The product being acquired—

      1. (A) Has critical characteristics;
      2. (B) Has specific features identified that make Government contract quality assurance at source necessary; or
      3. (C) Has specific acquisition concerns identified that make Government contract quality assurance at source necessary; and

   3. (iii) The contract is being awarded to—

      1. (A) A manufacturer or producer; or
      2. (B) A non-manufacturer or non-producer and specific Government verifications have been identified as necessary and feasible to perform.

[70 FR 8543, Feb. 22, 2005, as amended at 75 FR 45074, Aug. 2, 2010; 85 FR 61504, Sept. 29, 2020; 90 FR 41486, Aug. 25, 2025]