As prescribed in 46.710-95 insert the following clause:
WARRANTY OF SUPPLIES, EXTENDED (66 MONTHS) (SEP 2008) - DLAD
(a) WARRANTY.
(1) Notwithstanding inspection and acceptance by the Government of any end item furnished under this contract, or any term or condition of this contract concerning the conclusiveness thereof, the contractor warrants that at the time of acceptance of each end item and continuing for a period of 66 months after each such acceptance:
(i) Each end item delivered under this contract will be free from defects in material and workmanship and will conform with all of the requirements of this contract; and
(ii) The preservation, packaging, packing and marking, and the preparation for, and method of, shipment of all end items will conform with the requirements of this contract.
(2) The warranties expressed herein are in lieu of any implied warranties of merchantability and fitness for a particular purpose.
(b) NOTIFICATION.
(1) The Government will be entitled to receive a refund of all or part of the contract price as provided in paragraph (c) for a breach of warranty for an end which is detected within 66 months after acceptance of the end item, provided that an authorized Government official notifies the contractor of the breach. The period for giving notice shall end 90 days after the expiration of the warranty for each end item. In addition to notifying the contractor of a breach of warranty, the Government shall return to the contractor each item for which such
notice is given. The Government may return the item either before or after notifying the contractor of the breach.
(2) The notification shall set forth the date on which the breach of warranty on an end item was detected.
(c) REMEDY.
(1) With respect to each end item in which a breach of warranty is detected within 12 months after its acceptance, the contractor shall refund the full contract price.
(2) With respect to each end item in which a breach of warranty is detected more than 12 months but less than 66 months after its acceptance, the contractor will refund a portion of the contract equal to the unit price less 1/54th of such unit price for each month beyond 12 months that have passed from the date of acceptance of that end item until the date of detection of the breach of warranty on that end item.
(3) For any refund owed under this clause the contractor shall send a check, payable to the Accounting and Finance Officer, to the Defense Supply Center Richmond or to another location if so designated by the Contracting Officer,, within 30 days after receipt of a notification under paragraph (b) or within 30 days after receipt of the returned item, whichever occurs later. Each such check will be substituted with a statement identifying the contractor, contract number, item name, national stock number, total amount of the check, and for each end item for which an amount is included:
(i) End Item Serial number;
(ii) Warranty expiration date;
(iii) Date notification of breach of warranty was received by the contractor; and
(iv) The amount included in the check for such end item.
(d) Transportation costs. The Government will bear the cost of shipment of each end item returned to the contractor's plant.
(e) Government rights. The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of this contract.
(f) Title. Title to a returned end item shall be deemed to be transferred to the contractor upon receipt by the Government of the refund for that item.
(g) Conditions. With respect to each end item accepted by the Government under this contract, it shall be presumed that there has been a breach of warranty if at any time within 66 months after its acceptance such items fails to operate/perform as required, unless:
(1) The Government fails to return the end item to the contractor; or
(2) The contractor establishes that:
(i) The end item is not defective or nonconforming; or
(ii) The defect or nonconformity is attributable solely to improper or negligent installation, operation, handling, or maintenance of that end item by Government personnel; or
(iii) The defect or nonconformity is the result of damage in combat.
(h) Notification by the Contractor.
(1) The contractor will notify the Contracting Officer within 7 days of the receipt of each end item returned to it by the Government. The notification will include the contract number, serial number, date of receipt, and name of activity returning the item. The Government may inspect any returned item at a time and location agreed on by the parties.
(2) The contractor will notify the Contracting Officer within 30 days of its receipt of a notice of breach of warranty or the end item to which such notice applies, whichever occurs
later, of any disagreement with the governments assertion of a breach of warranty. The contractor may not thereafter assert in opposition to a claim of breach of warranty by the
Government any fact about the condition of the end item that it knew of or could have known of by making a reasonable inspection of the end item within the above thirty day period.
(i) Definitions.
(1) "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 supplies, or approves specific services as partial or complete performance of the contract.
(2) "An authorized Government official," as used in this clause, means the Contracting Officer or a person designated by the contracting officer (either by name or by position
(End of Clause)
