52.246-18 Warranty of Supplies of a Complex

Nature.

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

Warranty of Supplies of a Complex Nature (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.

Supplies means 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) The Contractor warrants that for ________ [Contracting Officer shall state the specific warranty

period 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]

all supplies furnished under this contract will be free from defects in material and workmanship and

will conform with all requirements of this contract; provided, however, that with respect to

Government-furnished property, the Contractor’s warranty shall extend only to its proper

installation, unless the Contractor performs some modification or other work on the property, in

which case the Contractor’s warranty shall extend to the modification or other work.

(2) Any supplies or parts thereof corrected or furnished in replacement shall be subject to the

conditions of this clause to the same extent as supplies initially delivered. This warranty 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.

(3) The Contractor shall not be obligated to correct or replace supplies if the facilities, tooling,

drawings, or other equipment or supplies necessary to accomplish the correction or replacement

have been made unavailable to the Contractor by action of the Government. In the event that

correction or replacement has been directed, the Contractor shall promptly notify the Contracting

Officer, in writing, of the nonavailability.

(4) The Contractor shall also prepare and furnish to the Government data and reports applicable to

any correction required (including revision and updating of all affected data called for under this

contract) at no increase in the contract price.

(5) When supplies are returned to the Contractor, the Contractor shall bear the transportation costs

from the place of delivery specified in the contract (irrespective of the f.o.b. point or the point of

acceptance) to the Contractor’s plant and return.

(6) 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) In the event of a breach of the Contractor’s warranty in paragraph (b)(1) of this clause, the

Government may, at no increase in contract price-

(i) Require the Contractor, at the place of delivery specified in the contract (irrespective of the f.o.b.

point or the point of acceptance) or at the Contractor’s plant, to repair or replace, at the

Contractor’s election, defective or nonconforming supplies; or

(ii) Require the Contractor to furnish at the Contractor’s plant the materials or parts and installation

instructions required to successfully accomplish the correction.

(2) If the Contracting Officer does not require correction or replacement of defective or

nonconforming supplies or the Contractor is not obligated to correct or replace under paragraph

(b)(3) of this clause, the Government shall be entitled to an equitable reduction in the contract price.

(3) The Contracting Officer shall notify the Contractor in writing of any breach of the warranty in

paragraph (b) of this clause within _____. [Contracting Officer shall insert specific period of time in

which notice shall be given to the Contractor; e.g.,"45days after delivery of the nonconforming

supplies."; "45days of the last delivery under this contract."; or "45days after discovery of the

defect."] The Contractor shall submit to the Contracting Officer a written recommendation within

_______ [Contracting Officer shall insert period of time] as to the corrective action required to

remedy the breach. After the notice of breach, but not later than _________ [Contracting Officer shall

insert period within which the warranty remedies should be exercised] after receipt of the

Contractor’s recommendation for corrective action, the Contracting Officer may, in writing, direct

correction or replacement as in paragraph (c)(1) of this clause, and the Contractor shall,

notwithstanding any disagreement regarding the existence of a breach of warranty, comply with this

direction. If it is later determined that the Contractor did not breach the warranty in paragraph

(b)(1) of this clause, the contract price will be equitably adjusted.

(4) If supplies are corrected or replaced, the period for notification of a breach of the Contractor’s

warranty in paragraph (c)(3) of this clause shall be _________ [Contracting Officer shall insert period

within which the Contractor must be notified of a breach as to corrected or replaced supplies] from

the furnishing or return by the Contractor to the Government of the corrected or replaced supplies

or parts thereof, or, if correction or replacement is effected by the Contractor at a Government or

other activity, for ______ [Contracting Officer shall insert period within which the Contractor must be

notified of a breach of warranty as to corrected or replaced supplies] thereafter.

(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 the 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)(5) for paragraph (b)(5) of the basic clause:

(5) 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 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 adjustments 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 IV (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 III is also 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]