52.246-20 Warranty of Services
Source: FAR 52.246-20 on acquisition.gov
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.
As prescribed in 46.710(d), insert a clause substantially as follows:
Warranty of Services (May 2001)
(a) Definition."Acceptance," as used in this clause, means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing and identified supplies, or approves specific services, as partial or complete performance of the contract.
(b) Notwithstanding inspection and acceptance by the Government or any provision concerning the conclusiveness thereof, the Contractor warrants that all services performed under this contract will, at the time of acceptance, be free from defects in workmanship and conform to the requirements of this contract. The Contracting Officer shall give written notice of any defect or nonconformance to the Contractor ____________ [Contracting Officer shall insert the specific period of time in which notice shall be given to the Contractor; e.g.,"within 30 days from the date of acceptance by the Government,"; within 1000 hours of use by the Government;" or other specified event whose occurrence will terminate the period of notice, or combination of any applicable events or period of time]. This notice shall state either-
(1) That the Contractor shall correct or reperform any defective or nonconforming services; or
(2) That the Government does not require correction or reperformance.
(c) If the Contractor is required to correct or reperform, it shall be at no cost to the Government, and any services corrected or reperformed by the Contractor shall be subject to this clause to the same extent as work initially performed. If the Contractor fails or refuses to correct or reperform, the Contracting Officer may, by contract or otherwise, correct or replace with similar services and charge to the Contractor the cost occasioned to the Government thereby, or make an equitable adjustment in the contract price.
(d) If the Government does not require correction or reperformance, the Contracting Officer shall make an equitable adjustment in the contract price.
(End of clause)