February 6, 1998
In reply refer to DFARS Case: 97-D326 D.L.98-002
MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT, ASN (RD&A) /ABM
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC
DEPUTY ASSISTANT SECRETARY OF THE ARMY (PROCUREMENT)
DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY
SUBJECT: Warrantees in Weapon System Acquisitions
We have amended Subpart 246.7 of the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 847 of the National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 108-85).
Section 847 repeals the requirement for contractor guarantees on major weapon systems.
This final DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.
Eleanor R. Spector
Director, Defense Procurement
"Acceptance," as defined in FAR 46.701 and as used in this subpart and in the warranty clauses at FAR 52.246-17, Warranty of Supplies of a Noncomplex Nature; FAR 52.246-18, Warranty of Supplies of a Complex Nature; FAR 52.246-19, Warranty of Systems and Equipment Under Performance Specifications or Design Criteria; and FAR 52.246-20, Warranty of Services, includes the execution of an official document (e.g., DD Form 250, Material Inspection and Receiving Report) by an authorized representative of the Government.
"Defect," as used in this subpart, means any condition or characteristic in any supply or service furnished by the contractor under the contract that is not in compliance with the requirements of the contract.
(c) Departments and agencies shall establish procedures to track and accumulate data on warranty costs.
Contracting officers may include the cost of a warranty as part of an item's price or as a separate contract line item.
The chief of the contracting office must approve use of a warranty, except in acquisitions for--
()Commercial items (see FAR 46.709);
()Technical data, unless the warranty provides for extended liability (see 246.708);
()Supplies and services in fixed price type contracts containing quality assurance provisions that reference higher-level contract quality requirements (see DFARS 246.202- 4); or
()Supplies and services in construction contracts when using the warranties that are contained in Federal, military, or construction guide specifications.