Inspection authority

An inspection authority is the person, organization, or representative a government client designates to inspect what a contractor delivers. That covers goods, services, documents, and reports. The inspection authority decides whether each deliverable complies with the contract, and its decision determines whether the work is accepted.

The term is used in government quality assurance (GQA), particularly where inspection happens at the supplier's premises ("at source") or at the delivery location ("at destination"). The CanadaBuys buyer's guide states that the client must designate the inspection authority and the point of inspection. Suppliers meet the term in requisitions, solicitation documents, and contract clauses, so it is worth knowing who holds the role before work begins.

How CanadaBuys assigns the inspection authority and inspection point

Under the CanadaBuys guidance on standards and quality assurance, a client must state its GQA requirements in the requisition or in attached documents. Those requirements must name two things: the inspection authority and the inspection point.

The same guidance explains who can fill the role. GQA at source may be performed by an inspection authority that the client specifies, or by one commissioned by Public Services and Procurement Canada (PSPC). The designation is therefore a deliberate choice made at the planning stage and written into the procurement documents.

Inspection authority clauses in Parks Canada solicitations

CanadaBuys solicitations from Parks Canada Agency show how the term appears in contract language. One request for proposal states that the Project Authority is the Inspection Authority. It adds that all reports, deliverables, documents, goods, and services under the contract are subject to inspection by the Inspection Authority or its representative. A second Parks Canada solicitation carries the same arrangement.

Another Parks Canada request for quote sets out the consequence of a failed inspection. If a deliverable does not meet the statement of work or satisfy the Inspection Authority, the authority may reject it or require the contractor to correct it at the contractor's expense. This happens before the authority recommends payment.

Quality assurance roles in Department of National Defence procurement

In defence work, related roles appear under different titles. CanadaBuys guidance on agreements with the Department of National Defence refers to determining contractor quality-control and inspection requirements. It also refers to designating the Quality Assurance Authority and deciding whether government quality assurance takes place at source or inspection takes place at destination.

These responsibilities sit alongside the inspection authority concept. Suppliers on defence contracts should read the quality assurance clauses closely to see who holds each role and where inspection occurs.

Inspection authority versus Controlled Goods Program inspections

The Controlled Goods Program, run by PSPC, also uses inspections. Its compliance inspections verify that registrants comply with the Defence Production Act and the Controlled Goods Regulations. This is a regulatory function. It is separate from the contract-specific inspection authority unless a contract expressly connects the two.

What it means for a supplier bidding on Canadian public contracts

• Identify the named Inspection Authority and the inspection point in the solicitation and the resulting contract.
• Make goods, services, reports, and documents available for inspection as the contract requires.
• Confirm each deliverable conforms to the statement of work before submitting it for acceptance. NATO's general procurement conditions take the same approach, requiring suppliers to tender only conforming items and reserving the buyer's right to inspect or test.
• Budget for correction or replacement at your own expense where the contract clause provides for that remedy.
• On GQA contracts, follow the stated quality-assurance, quality-control, testing, documentation, and access requirements.