52.246-20
Warranty of Services
Contractors must warrant that all services are defect-free and conform to contract requirements at acceptance, and must correct or reperform any defects at no cost if notified within the specified period.
Overview
- FAR 52.246-20, Warranty of Services, establishes the contractor's obligation to warrant that all services provided under the contract are free from defects in workmanship and conform to contract requirements at the time of acceptance. It outlines the process for the government to notify the contractor of defects or nonconformance within a specified period, and details the contractor's responsibilities for correcting or reperforming services at no additional cost to the government. The clause also provides for equitable adjustments to the contract price if the government chooses not to require correction or reperformance.
Key Rules
- Definition of Acceptance
- Acceptance is when an authorized government representative approves services as meeting contract requirements, either partially or fully.
- Warranty of Services
- Contractors must warrant that services are defect-free and conform to contract requirements at acceptance, regardless of prior inspection or acceptance.
- Notification of Defects
- The government must notify the contractor of any defects or nonconformance within a specified period (to be inserted in the contract).
- Correction or Reperformance
- Contractors must correct or reperform defective services at no cost if notified within the specified period; corrected services are subject to the same warranty.
- Failure to Correct or Reperform
- If the contractor fails to correct or reperform, the government may obtain replacement services and charge the contractor, or adjust the contract price.
- Equitable Adjustment
- If the government does not require correction or reperformance, an equitable adjustment to the contract price is made.
Responsibilities
- Contracting Officers: Insert the specific notification period in the contract, provide written notice of defects, and determine remedies (correction, reperformance, or price adjustment).
- Contractors: Ensure services are defect-free and conform to requirements, correct or reperform defective services at no cost, and accept liability for costs if they fail to remedy defects.
- Agencies: Oversee compliance with warranty provisions and ensure proper documentation of defects and remedies.
Practical Implications
- This clause protects the government by ensuring contractors remain responsible for service quality even after acceptance. Contractors must be prepared to address defects promptly and at their own expense. Failure to comply can result in financial penalties or contract price reductions. Common pitfalls include unclear notification periods and inadequate documentation of defects or corrective actions.