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  • Question

    A recent modification to an IDQ incorporated the warranty of supplies clause (due to a CAR) for a period of 3 years. Is it appropriate to close out the orders affected, or do I need to wait until the warranty period is over?


    Answer

    FAR 52.246-18 'Warranty of Supplies of a Complex Nature' was incorporated into the contract via P00020. DOs 0001thru DO 0007 and 0012 are referenced as being covered by the clause for a period of 3yrs after acceptance. Thus, in order to exercise any warranty rights under the contract impacting the above orders, the orders should not be closed until the end of the warranty period. Thus, the administration of the warranty clause is not complete for the duration of 3yrs after Government acceptance.

    Due to the above warranty clause, the Administrative Contracting Officer will be unable to execute a Completion Statement per FAR 4.805(b)(10) that states 'all required contract administration actions have been fully and satisfactorily accomplished'. Thus, I contend that the function of closing out administration the warranty for each affected order is not complete for the 3 yr period of the warranty. 
     
    52.246-18 -- Warranty of Supplies of a Complex Nature.
    As prescribed in
    46.710(b)(1), insert a clause substantially as follows:
    Warranty of Supplies of a Complex Nature (May 2001)
    (b) Contractor’s obligations.
    (1) The Contractor warrants that for ___3_____ [Contracting Officer shall state the specific warranty period after delivery, or the specified event whose occurrence will terminate the warranty period; e.g., the number of miles or hours of use, or combinations of any applicable events or periods of time] all supplies furnished under this contract will be free from defects in material and workmanship and will conform with all requirements of this contract; provided, however, that with respect to Government-furnished property, the Contractor’s warranty shall extend only to its proper installation, unless the Contractor performs some modification or other work on the property, in which case the Contractor’s warranty shall extend to the modification or other work.

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