Subpart 46.7
Warranties
FAR Subpart 46.7 establishes when and how warranties should be used in government contracts to protect the government's interests and ensure quality compliance.
Overview
FAR Subpart 46.7 covers the use of warranties in government contracts, outlining when and how warranties should be applied to ensure product or service quality. It provides guidance on the general principles, criteria for use, authority, limitations, required terms and conditions, pricing considerations, and specific types of warranties (including for data and commercial items). The subpart also addresses the inclusion of appropriate contract clauses to enforce warranty provisions. The intent is to protect the government's interests by ensuring that delivered products or services conform to contract requirements and to allocate risk appropriately between the government and contractors.
Key Rules
- General Principles (46.702)
- Establishes the basic framework for when warranties are appropriate in contracts.
- Criteria for Use (46.703)
- Details the factors to consider before including a warranty, such as cost, risk, and benefit to the government.
- Authority and Limitations (46.704-46.705)
- Specifies who can authorize warranties and under what circumstances, as well as restrictions on their use.
- Warranty Terms and Conditions (46.706)
- Outlines required elements and enforceability of warranty provisions.
- Pricing and Special Types (46.707-46.709)
- Addresses pricing for warranties in fixed-price incentive contracts and special considerations for data and commercial items.
- Contract Clauses (46.710)
- Mandates the inclusion of specific warranty clauses in contracts when applicable.
Responsibilities
- Contracting Officers: Must determine the appropriateness of warranties, ensure proper clauses are included, and manage warranty enforcement.
- Contractors: Must comply with all warranty terms, provide required remedies, and maintain documentation.
- Agencies: Oversee warranty use, ensure compliance, and monitor performance.
Practical Implications
- This subpart ensures the government receives products and services that meet contract standards and provides recourse if defects arise.
- Contractors must be diligent in understanding warranty obligations, as failure to comply can result in costly remedies or contract disputes.
- Common pitfalls include unclear warranty terms, improper pricing, or failure to include required clauses.