52.246-17 Warranty of Supplies of a

Noncomplex Nature.

As prescribed in 46.710(a)(1), insert a clause substantially as follows:

Warranty of Supplies of a Noncomplex Nature (June 2003)

(a) Definitions. As used in this clauseAcceptance means the act of an authorized representative of the Government by which the

Government assumes for itself, or as an agent of another, ownership of existing supplies, or

approves specific services as partial or complete performance of the contract.

Suppliesmeans the end items furnished by the Contractor and related services required under this

contract. The word does not include "data."

(b) Contractor’s obligations.

(1) Notwithstanding inspection and acceptance by the Government of supplies furnished under this

contract, or any condition of this contract concerning the conclusiveness thereof, the Contractor

warrants that for ________ [Contracting Officer shall state specific period of time after delivery, or

the specified event whose occurrence will terminate the warranty period; e.g.,the number of miles or

hours of use, or combinations of any applicable events or periods of time]-

(i) All supplies furnished under this contract will be free from defects in material or workmanship

and will conform with all requirements of this contract; and

(ii) The preservation, packaging, packing, and marking, and the preparation for, and method of,

shipment of such supplies will conform with the requirements of this contract.

(2) When return, correction, or replacement is required, transportation charges and responsibility

for the supplies while in transit shall be borne by the Contractor. However, the Contractor’s liability

for the transportation charges shall not exceed an amount equal to the cost of transportation by the

usual commercial method of shipment between the place of delivery specified in this contract and

the Contractor’s plant, and return.

(3) Any supplies or parts thereof, corrected or furnished in replacement under this clause, shall also

be subject to the terms of this clause to the same extent as supplies initially delivered. The warranty,

with respect to supplies or parts thereof, shall be equal in duration to that in paragraph (b)(1) of this

clause and shall run from the date of delivery of the corrected or replaced supplies.

(4) All implied warranties of merchantability and "fitness for a particular purpose" are excluded from

any obligation contained in this contract.

(c) Remedies available to the Government.

(1) The Contracting Officer shall give written notice to the Contractor of any breach of warranties in

paragraph (b)(1) of this clause within ________ [Contracting Officer shall insert specific period of
time; e.g.,"45days of the last delivery under this contract," or "45days after discovery of the defect"].

(2) Within a reasonable time after the notice, the Contracting Officer may either-

(i) Require, by written notice, the prompt correction or replacement of any supplies or parts thereof

(including preservation, packaging, packing, and marking) that do not conform with the

requirements of this contract within the meaning of paragraph (b)(1) of this clause; or

(ii) Retain such supplies and reduce the contract price by an amount equitable under the

circumstances.

(3)

(i) If the contract provides for inspection of supplies by sampling procedures, conformance of

supplies or components subject to warranty action shall be determined by the applicable sampling

procedures in the contract. The Contracting Officer-

(A) May, for sampling purposes, group any supplies delivered under this contract;

(B) Shall require the size of the sample to be that required by sampling procedures specified in the

contract for the quantity of supplies on which warranty action is proposed;

(C) May project warranty sampling results over supplies in the same shipment or other supplies

contained in other shipments even though all of such supplies are not present at the point of

reinspection; provided, that the supplies remaining are reasonably representative of the quantity on

which warranty action is proposed; and

(D) Need not use the same lot size as on original inspection or reconstitute the original inspection

lots.

(ii) Within a reasonable time after notice of any breach of the warranties specified in paragraph

(b)(1) of this clause, the Contracting Officer may exercise one or more of the following options:

(A) Require an equitable adjustment in the contract price for any group of supplies.

(B) Screen the supplies grouped for warranty action under this clause at the Contractor’s expense

and return all nonconforming supplies to the Contractor for correction or replacement.

(C) Require the Contractor to screen the supplies at locations designated by the Government within

the contiguous United States and to correct or replace all nonconforming supplies.

(D) Return the supplies grouped for warranty action under this clause to the Contractor (irrespective

of the f.o.b. point or the point of acceptance) for screening and correction or replacement.

(4)

(i) The Contracting Officer may, by contract or otherwise, correct or replace the nonconforming

supplies with similar supplies from another source and charge to the Contractor the cost occasioned

to the Government thereby if the Contractor-

(A) Fails to make redelivery of the corrected or replaced supplies within the time established for

their return; or
(B) Fails either to accept return of the nonconforming supplies or fails to make progress after their

return to correct or replace them so as to endanger performance of the delivery schedule, and in

either of these circumstances does not cure such failure within a period of 10 days (or such longer

period as the Contracting Officer may authorize in writing) after receipt of notice from the

Contracting Officer specifying such failure.

(ii) Instead of correction or replacement by the Government, the Contracting Officer may require an

equitable adjustment of the contract price. In addition, if the Contractor fails to furnish timely

disposition instructions, the Contracting Officer may dispose of the nonconforming supplies for the

Contractor’s account in a reasonable manner. The Government is entitled to reimbursement from

the Contractor, or from the proceeds of such disposal, for the reasonable expenses of the care and

disposition of the nonconforming supplies, as well as for excess costs incurred or to be incurred.

(5) The rights and remedies of the Government provided in this clause are in addition to and do not

limit any rights afforded to the Government by any other clause of this contract.

(End of clause)

Alternate I [Reserved]

Alternate II (Apr 1984). If it is desirable to specify that necessary transportation incident to

correction or replacement will be at the Government’s expense (as might be the case if, for example,

the cost of a warranty would otherwise be prohibitive), substitute a paragraph substantially the

same as the following paragraph (b)(2) for paragraph (b)(2) of the basic clause:

(2) If correction or replacement is required and transportation of supplies in connection with

correction or replacement is necessary, transportation charges and responsibility for the supplies

while in transit shall be borne by the Government.

Alternate III (Apr 1984). If the supplies cannot be obtained from another source, substitute a

paragraph substantially the same as the following paragraph (c)(4) for paragraph (c)(4) of the basic

clause:

(4) If the Contractor does not agree as to responsibility to correct or replace the supplies delivered,

the Contractor shall nevertheless proceed in accordance with the written request issued by the

Contracting Officer under paragraph (c)(2) of this clause to correct or replace the defective or

nonconforming supplies. In the event it is later determined that the supplies were not defective or

nonconforming within the terms and conditions of this clause, the contract price will be equitably

adjusted.

Alternate IV (Apr 1984). If a fixed-price incentive contract is contemplated, add a paragraph

substantially the same as the following paragraph (c)(6) to the basic clause:

(6) All costs incurred or estimated to be incurred by the Contractor in complying with this clause

shall be considered when negotiating the total final price under the Incentive Price Revision clause

of this contract. After establishment of the total final price, Contractor compliance with this clause

shall be at no increase in the total final price. Any equitable adjustment made under paragraph (c)(2)

of this clause shall be governed by the paragraph entitled "Equitable Adjustments Under Other

Clauses" in the Incentive Price Revision clause of this contract.

Alternate V (Apr 1984). If it is anticipated that recovery of the warranted item will involve

considerable Government expense for disassembly and/or reassembly of larger items, add a
paragraph substantially the same as the following paragraph (c)(6) to the basic clause. Redesignate

the additional paragraph as "(c)(7)" if Alternate IV is also being used.

(6) The Contractor shall be liable for the reasonable costs of disassembly and/or reassembly of larger

items when it is necessary to remove the supplies to be inspected and/or returned for correction or

replacement.

Parent topic: 52.246 [Reserved]