When does title to supplies pass to the Government?

The correct answer is that title to supplies passes to the Government upon formal acceptance of the supplies. This reflects a crucial principle in contracting where ownership is not merely transferred based on the act of delivery or shipment but is contingent upon the Government's acceptance of the goods. Acceptance indicates that the supplies have been inspected and meet the specified requirements as per the contract, confirming that they are of acceptable quality and condition.

The formal acceptance serves as a safeguard for the Government, ensuring that it only assumes title and responsibility for supplies that fulfill the established criteria. This process helps prevent disputes regarding ownership and liability for any defects, as the Government has validated that the supplies conform to the contract terms.

Other options suggest passing title at different stages, such as delivery or shipment; however, those points do not account for the significance of acceptance in confirming the adequacy of the supplies. The option mentioning payment also does not align with the principles of transfer of title, as the Government's financial obligations do not determine ownership until it formally accepts the supplies. This makes formal acceptance a critical moment in the procurement process for successful contracting.