52.246-19
Warranty of Systems and Equipment under Performance Specifications or Design Criteria
FAR 52.246-19 requires contractors to promptly correct defects in systems and equipment delivered under performance-based contracts, with strict notification, reporting, and cost responsibilities to ensure Government interests are protected.
Overview
FAR 52.246-19 establishes the warranty requirements for systems and equipment delivered under contracts with performance specifications or design criteria. This clause defines the contractor’s obligations to correct defects discovered within a specified warranty period, outlines the procedures for notification and correction, and details the remedies available to the Government. It also addresses the responsibilities for transportation costs, the exclusion of implied warranties, and the handling of Government-furnished property. Alternate versions of the clause provide flexibility for transportation costs, incentive contracts, and situations involving significant disassembly/reassembly costs.
Key Rules
- Warranty Period and Defect Correction
- Contractors must correct defects discovered within the warranty period specified in the contract, at no additional cost to the Government.
- Notification and Reporting
- Contractors must promptly notify the Contracting Officer of any defects and submit recommendations for corrective action within specified timeframes.
- Government Remedies
- The Government retains broad rights to require correction, obtain corrective recommendations, or recover costs if the contractor fails to comply.
- Transportation and Liability
- Contractors are generally responsible for transportation costs related to defect correction, unless an alternate clause is used.
- Exclusion of Implied Warranties
- All implied warranties of merchantability and fitness for a particular purpose are excluded.
Responsibilities
- Contracting Officers: Must specify warranty periods, notification timeframes, and may select alternate clauses as appropriate. Responsible for notifying contractors of defects and directing corrective actions.
- Contractors: Must correct defects, submit timely notifications and proposals, provide data/reports, and bear costs as specified. Must comply with all directions regarding defect correction.
- Agencies: Oversee compliance, enforce remedies, and may recover costs for noncompliance.
Practical Implications
- This clause ensures the Government receives defect-free systems and equipment that meet contract requirements. Contractors must have robust quality control and defect reporting processes. Failure to comply can result in significant cost recovery actions, loss of payment, or contract modifications. Common pitfalls include missing notification deadlines, inadequate corrective action proposals, or misunderstanding transportation responsibilities.