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  • Question

    Beyond the point of initial delivery of GFP to the ktr at the start of the contract, is any of the GFP indicated "as-is" on the GFP list, still the ktr's responsibility to repair, replace and/or refurbish in the subsequent option years or is this only applicable at the time of the delivery of GFP?


    Answer

    Yes, in accordance with FAR 52.245-1 (d)(2)(iii) the contractor is fully responsible for all repair, replacement and/or refurbishment of the property for the full performance of the contract including performance on the subsequent options. The Government makes no warranty with respect to the serviceability and/or suitability of property provided for contract performance.  
     
    FAR 45.201 requires the Contracting Officer to identify all property that will be provided on an “as-is” basis.  Since the Contracting Officer exercised this option and included the 54.245-1, then in accordance with the contract requirements the contractor is fully responsible; however, the contractor does have the right to inspect the items prior to acceptance.  Once the contractor inspects and accepts the Government Furnished Property, the requirements of FAR 52.245-1 (d)(2)(iii) will apply. If the contractor does not exercise their right to inspect the FAR clause requirements still apply throughout the full performance of the contract. See FAR clause below.
     
    FAR 52.245-1 (d)(2)(iii) The Government may, at its option, furnish property in an “as-is” condition. The Contractor will be given the opportunity to inspect such property prior to the property being provided. In such cases, the Government makes no warranty with respect to the serviceability and/or suitability of the property for contract performance. Any repairs, replacement, and/or refurbishment shall be at the Contractor’s expense.

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