52.246-19 Warranty of Systems and

Equipment under Performance Specifications

or Design Criteria.

As prescribed in 46.710(c)(1), the contracting officer may insert a clause substantially as follows:

Warranty of Systems and Equipment under Performance Specifications or Design Criteria (May

2001)

(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 and identified

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

Defect means any condition or characteristic in any supplies or services furnished by the Contractor

under the contract that is not in compliance with the requirements of the contract.

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

contract. Except when this contract includes the clause entitled Warranty of Data, supplies also

mean "data."

(b) Contractor’s obligations.

(1) The Contractor’s warranties under this clause shall apply only to those defects discovered by

either the Government or the Contractor __________ [Contracting Officer shall state the warranty

period; e.g.,"at the time of delivery;" "within 45 days after delivery," or the specified event whose

occurrence will terminate the warranty period; e.g.,the number of miles or hours of use, or

combination of any applicable events or periods of time.].

(2) If the Contractor becomes aware at any time before acceptance by the Government (whether

before or after tender to the Government) that a defect exists in any supplies or services, the

Contractor shall-

(i) Promptly correct the defect; or

(ii) Promptly notify the Contracting Officer, in writing, of the defect, using the same procedures

prescribed in paragraph (b)(3) of this clause.

(3) If the Contracting Officer determines that a defect exists in any of the supplies or services

accepted by the Government under this contract, the Contracting Officer shall promptly notify the

Contractor of the defect, in writing, within _____ [Contracting Officer shall insert the specific period

of time in which notice shall be given to the Contractor; e.g.,"30days after delivery of the

nonconforming supplies;" "90days of the last delivery under this contract;" or "90days after

discovery of the defect."]. Upon timely notification of the existence of a defect, or if the Contractor

independently discovers a defect in accepted supplies or services, the Contractor shall submit to the

Contracting Officer, in writing, within _____ [Contracting Officer shall insert period of time] a

recommendation for corrective actions, together with supporting information in sufficient detail for
the Contracting Officer to determine what corrective action, if any, shall be undertaken.

(4) The Contractor shall promptly comply with any timely written direction from the Contracting

Officer to correct or partially correct a defect, at no increase in the contract price.

(5) The Contractor shall also prepare and furnish to the Contracting Officer data and reports

applicable to any correction required under this clause (including revision and updating of all other

affected data called for under this contract) at no increase in the contract price.

(6) In the event of timely notice of a decision not to correct or only to partially correct, the

Contractor shall submit a technical and cost proposal within _______. [Contracting Officer shall insert

period of time] to amend the contract to permit acceptance of the affected supplies or services in

accordance with the revised requirement, and an equitable reduction in the contract price shall

promptly be negotiated by the parties and be reflected in a supplemental agreement to this contract.

(7) Any supplies or parts thereof corrected or furnished in replacement and any services

reperformed shall also be subject to the conditions of this clause to the same extent as supplies or

services initially accepted. The warranty, with respect to these supplies, parts, or services, shall be

equal in duration to that set forth in paragraph (b)(1) of this clause, and shall run from the date of

delivery of the corrected or replaced supplies.

(8) The Contractor shall not be responsible under this clause for the correction of defects in

Government-furnished property, except for defects in installation, unless the Contractor performs, or

is obligated to perform, any modifications or other work on such property. In that event, the

Contractor shall be responsible for correction of defects that result from the modifications or other

work.

(9) If the Government returns supplies to the Contractor for correction or replacement under this

clause, the Contractor shall be liable for transportation charges up to an amount equal to the cost of

transportation by the usual commercial method of shipment from the place of delivery specified in

this contract (irrespective of the f.o.b. point or the point of acceptance) to the Contractor’s plant and

return to the place of delivery specified in this contract. The Contractor shall also bear the

responsibility for the supplies while in transit.

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

from any obligation under this contract.

(c) Remedies available to the Government.

(1) The rights and remedies of the Government provided in this clause-

(i) Shall not be affected in any way by any terms or conditions of this contract concerning the

conclusiveness of inspection and acceptance; and

(ii) Are in addition to, and do not limit, any rights afforded to the Government by any other clause of

this contract.

(2) Within ____________ [Contracting Officer shall insert period of time] after receipt of the

Contractor’s recommendations for corrective action and adequate supporting information, the

Contracting Officer, using sole discretion, shall give the Contractor written notice not to correct any

defect, or to correct or partially correct any defect within a reasonable time at ________ [Contracting

Officer shall insert locations where corrections may be performed].
(3) In no event shall the Government be responsible for any extension or delays in the scheduled

deliveries or periods of performance under this contract as a result of the Contractor’s obligations to

correct defects, nor shall there be any adjustment of the delivery schedule or period of performance

as a result of the correction of defects unless provided by a supplemental agreement with adequate

consideration.

(4) This clause shall not be construed as obligating the Government to increase the contract price.

(5)

(i) The Contracting Officer shall give the Contractor a written notice specifying any failure or refusal

of the Contractor to-

(A) Present a detailed recommendation for corrective action as required by paragraph (b)(3) of this

clause;

(B) Correct defects as directed under paragraph (b)(4) of this clause; or

(C) Prepare and furnish data and reports as required by paragraph (b)(5) of this clause.

(ii) The notice shall specify a period of time following receipt of the notice by the Contractor in

which the Contractor must remedy the failure or refusal specified in the notice.

(6) If the Contractor does not comply with the Contracting Officer’s written notice in paragraph

(c)(5)(i) of this clause, the Contracting Officer may by contract or other-wise-

(i) Obtain detailed recommendations for corrective action and either-

(A) Correct the supplies or services; or

(B) Replace the supplies or services, and 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, in which case the Government is entitled to reimbursement from

the Contractor, or from the proceeds, for the reasonable expenses of care and disposition, as well as

for excess costs incurred or to be incurred;

(ii) Obtain applicable data and reports; and

(iii) Charge the Contractor for the costs incurred by the Government.

(End of clause)

Alternate I (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)(9) for paragraph (b)(9) of the basic clause:

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

substantially the same as the following paragraph (c)(7) to the basic clause:

(7) 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 adjustments made under paragraph

(b)(6) 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 III (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)(7) to the basic clause. Redesignate

the additional paragraph as "(c)(8)" if Alternate II is also being used:

(7) 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]