46.704
Authority for use of warranties
Warranties in government acquisitions require prior approval according to agency-specific procedures, ensuring their use is justified and properly authorized.
Overview
FAR 46.704 establishes that the inclusion of a warranty in a government acquisition is not automatic; it requires formal approval in line with each agency's specific procedures. This section ensures that warranties are only used when justified and that their use is subject to oversight and proper authorization. The intent is to prevent unnecessary or inappropriate warranty requirements, which could increase costs or administrative burdens without commensurate benefit to the government.
Key Rules
- Approval Requirement
- The use of a warranty in any acquisition must be approved before inclusion, following the procedures set by the contracting agency.
- Agency Procedures
- Each agency is responsible for establishing and following its own internal procedures for approving warranties in contracts.
Responsibilities
- Contracting Officers: Must seek and obtain approval for the use of warranties in acquisitions, adhering to their agency’s established procedures.
- Contractors: Should be aware that warranties are not standard and may only be included if properly approved.
- Agencies: Must develop, maintain, and enforce procedures for the approval of warranties in acquisitions.
Practical Implications
- This section exists to ensure that warranties are used judiciously and only when they add value to the acquisition.
- It impacts daily contracting by requiring an extra step—approval—before a warranty can be included, potentially affecting timelines.
- Common pitfalls include failing to obtain proper approval or misunderstanding agency-specific procedures, which can lead to compliance issues or contract delays.