52.246-18
Warranty of Supplies of a Complex Nature
FAR 52.246-18 requires contractors to provide explicit warranties for complex supplies, ensuring government remedies for defects and nonconformance within specified periods.
Overview
FAR 52.246-18, "Warranty of Supplies of a Complex Nature," establishes the requirements for contractors to provide warranties on complex supplies delivered to the government. The clause defines key terms, outlines the contractor’s warranty obligations, and specifies the remedies available to the government in the event of defects or nonconformance. It also provides for several alternates to address transportation costs, incentive contracts, and situations involving significant disassembly or reassembly costs. The clause is tailored for contracts involving complex items where a standard warranty is insufficient due to the nature of the supplies or the risks involved.
Key Rules
- Contractor’s Warranty Obligations
- Contractors must warrant that supplies are free from defects and conform to contract requirements for a specified period or event. The warranty also applies to corrected or replaced items.
- Exclusions and Limitations
- Implied warranties of merchantability and fitness for a particular purpose are excluded. The contractor is not responsible for correction if government actions make necessary resources unavailable.
- Government Remedies
- The government may require repair or replacement, or an equitable price reduction if correction is not feasible. Notification and corrective action timelines are specified in the contract.
- Transportation and Cost Provisions
- The basic clause requires the contractor to bear transportation costs for warranty returns, but alternates allow for government payment or address special cost considerations in incentive contracts or complex disassembly scenarios.
Responsibilities
- Contracting Officers: Must specify warranty periods, notification timelines, and select appropriate alternates based on contract type and complexity.
- Contractors: Must deliver defect-free supplies, honor warranty obligations, provide required data/reports, and comply with correction/replacement procedures.
- Agencies: Oversee warranty enforcement, issue notifications, and manage remedies for nonconformance.
Practical Implications
- This clause ensures government protection for complex, high-value, or high-risk supplies by requiring explicit warranties and remedies. Contractors must carefully track warranty periods, maintain documentation, and be prepared for corrective actions. Failure to comply can result in financial penalties or contract price reductions. Alternate provisions allow flexibility for unique contract circumstances.