[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR9.305]

[Page 148-149]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 9_CONTRACTOR QUALIFICATIONS--Table of Contents
 
             Subpart 9.3_First Article Testing and Approval
 
Sec.  9.305  Risk.

    Before first article approval, the acquisition of materials or 
components, or commencement of production, is normally at the sole risk 
of the contractor. To minimize this risk, the contracting officer shall 
provide sufficient time in the delivery schedule for acquisition of 
materials and components, and for production after receipt of first 
article approval. When Government requirements preclude this action, the 
contracting officer may, before approval of the first article, authorize 
the contractor to acquire specific materials or components or commence 
production to the extent essential to meet the delivery schedule (see 
Alternate II of the clause at 52.209-3, First Article

[[Page 149]]

Approval--Contractor Testing, and Alternate II of the clause at 52.209-
4, First Article Approval--Government Testing. Costs incurred based on 
this authorization are allocable to the contract for (1) progress 
payments and (2) termination settlements if the contract is terminated 
for the convenience of the Government.