52.246-17
Warranty of Supplies of a Noncomplex Nature
Under FAR 52.246-17, acceptance does not end contractor responsibility: during the stated warranty period, the Government can require correction, replacement, price reduction, or charge excess costs for nonconforming noncomplex supplies.
Overview
- FAR 52.246-17 establishes a warranty clause for noncomplex supplies, preserving the Government’s right to require correction, replacement, price reduction, or other remedies even after inspection and acceptance.
- The clause defines the warranty period by a time period or specified event set by the Contracting Officer and covers both product quality and compliance with packaging, packing, marking, and shipment requirements.
Key Rules
- Warranty Coverage and Duration
- The Contractor warrants that delivered supplies will be free from defects in material or workmanship and conform to all contract requirements during the stated warranty period. Corrected or replacement items receive a new warranty period running from their delivery date.
- Transportation and Replacement Responsibilities
- Under the basic clause, the Contractor bears transportation costs and transit risk for return, correction, or replacement, subject to a cap based on usual commercial shipping between the delivery point and the Contractor’s plant. Alternate II shifts those transportation costs to the Government.
- Government Remedies for Breach
- After written notice within the specified notice period, the Contracting Officer may require correction or replacement, retain the supplies with an equitable price reduction, use sampling procedures for grouped supplies, or obtain replacement from another source and charge excess costs to the Contractor if the Contractor fails to act.
- Special Alternates
- Alternates address situations involving Government-paid transportation, sole-source replacement constraints, fixed-price incentive contracts, and disassembly/reassembly costs for larger items.
Responsibilities
- Contracting Officers: establish the warranty and notice periods, issue written breach notices, select appropriate remedies, and apply sampling procedures where the contract provides for them.
- Contractors: deliver conforming supplies, correct or replace defective items promptly, bear applicable transportation and related costs unless an alternate applies, and respond to cure notices within 10 days unless extended in writing.
- Agencies: enforce warranty rights, document breach and remedy decisions, and recover excess costs or disposal expenses when authorized.
Practical Implications
- This clause gives the Government post-acceptance protection for relatively simple supply items where defects may appear after delivery.
- Contractors should track warranty periods carefully, maintain quality records, and respond quickly to written notices to avoid price reductions, excess reprocurement costs, and disposal charges.
- Common pitfalls include missing cure deadlines, overlooking packaging/marking defects as warranty issues, and failing to recognize that replacement items restart the warranty period.