Addendum L-3 Commercial Warranty Terms.docx

Attachment J-3

The Contractor will correct defects in accordance with the warranty terms provided below:

Warranty Terms For each ship and all equipment or components of each ship, the following represents the warranty of the Contractor, __________________ (Insert Offeror’s/Contractor’s Name) warranty with regard to the vessel(s) delivered under this contract.

(a) Definitions. As used in the Offeror’s/Contractor’s warranty-- “Acceptance” 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 vessel(s), or approves specific services rendered, as partial or complete performance of the contract as documented in a Material Inspection and Receiving Report (Form DD250).

“Defect” means any condition or characteristic in the vessel(s) or any of its systems, subsystems, components, parts, or equipment furnished by the Contractor under the contract that is not in compliance with the requirements of the contract. The term further includes any and all deficiencies, deteriorations, non-conforming conditions, or failure in the vessel(s) or any of its systems, subsystems, components, parts, or equipment.

(b) Contractor’s obligations.

(1) For any vessel or any of its systems, subsystems, components, parts, or equipment that is required to be provided to the Government under the contract for the AFDM, the Contractor shall provide and extend to the Government the full coverage of any standard commercial warranty normally offered by the Original Equipment Manufacturer, Vendor, or Supplier, provided that such warranty is available at no additional cost to the Government and, in accordance with FAR 52.212-4(o), shall include a warranty that the vessel and its systems, subsystems, components, parts, and equipment are fit for use and for the particular purpose described in this contract.

(2)The Contractor’s warranties shall begin at acceptance of each vessel and end (Offeror to fill in 12 months or greater) ________later unless extended by the time during which the vessel(s) or any of its systems, subsystems, components, parts, or equipment are not available for unrestricted service by reason of any defects.

(3) The Contractor agrees to remedy any defect in the vessel and its systems, subsystems, components, parts, and equipment known at the time of acceptance by the Government or discovered during the warranty period at no additional cost to the Government.

(4) If the Contracting Officer determines that a defect exists in any of the supplies or services accepted by the Government under this contract, the designated Government (SUPSHIP if applicable) representative shall promptly notify the Contractor of the defect, in writing, within _________(Offeror to fill in 30 days or greater) days after discovery of the defect. The Contractor shall submit to the designated Government (SUPSHIP if applicable) representative, in writing, within _________ (Offeror to fill in 10 or less) days a recommendation for corrective actions, together with supporting information in sufficient detail for the designated SUPSHIP

(5) The Contractor shall promptly comply with any timely written direction from the Contracting Officer to correct or partially correct a defect, at no increase in the contract price.

(6) The Contractor shall also prepare and furnish to the Contracting Officer data and reports applicable or relating to any defect correction required under this clause (including revision and updating of all other affected data called for under this contract) at no increase in the contract price.

(7) The Contractor shall establish and maintain a warranty item correction program to ensure that all defects that fall under the warranty are corrected in an expedient manner. The contractor shall provide a Warranty Engineer(s) as necessary to:

(i) Act as the principal point of contact between the Contractor and the Government during the warranty period.

(ii) Authorize and coordinate vessel(s) visits by vendor representatives and accomplishment of industrial work locally to correct defects covered by the warranty.

(iii) Conduct vessel(s) visits as required for the Contractor, its vendor(s) and the Government to gain familiarity with scope and nature of the defect(s) covered by the warranty and ensure satisfactory correction of such items.

(iv) Conduct liaison with the designated Government (SUPSHIP if applicable) representative to ensure that corrective actions are satisfactory to the Government and signed-off by the designated Government (SUPSHIP if applicable) representative.

(8) The Contractor shall not be responsible for the correction of defects in Government-furnished property, except for defects in installation, unless the Contractor performs, or is obligated to perform, any modifications or other work on such property. In that event, the Contractor shall be responsible only for correction of defects that result from the modifications or other work.

(9) To the extent not already required above, the Contractor shall offer at least the same warranty terms offered to the general public in a similar commercial sale at no additional cost to the Government. Offeror/Contractor shall list such terms below or indicate no additional terms apply in the provided space, or if necessary, continued on an attached sheet:

(c) Remedies available to the Government.

(1) The rights and remedies of the Government provided in this warranty --

(i) Shall not be affected in any way by any terms or conditions of this contract concerning the conclusiveness of inspection and acceptance; and

(ii) Are in addition to, and do not limit, any rights afforded to the Government by any other clause of this contract.

(2) In no event shall the Government be responsible for any extension or delays in the scheduled deliveries or periods of performance under this contract as a result of the Contractor’s obligations to correct defects, nor shall there be any adjustment of the delivery schedule or period of performance as a result of the correction of defects unless provided by a supplemental agreement with adequate consideration.

(3) The Government shall have no obligation to increase the contract price and the Contractor’s performance under this warranty shall not entitle it to any increase in the contract price.

(4) If, within a reasonable time, the Contractor does not initiate and diligently pursue its obligations, the Government may, by notice in writing, specify a final time for completion of the Contractor’s obligations. The notice shall be given at least one month before such specified final time. If the Contractor fails to fulfil its obligations within such final time, the Government may declare the Contractor to be in default and may undertake or employ a third party to undertake necessary remedial work. Where successful remedial work has been undertaken by the Government or third party, reimbursement by the Contractor of costs incurred by the Government for such remedial work shall constitute full settlement of the Contractor’s liability for said defect.