Attachment_7_Class_D_and_F_-_Warranty_Construction_-_ConOps_East_3-14-24_1.pdf
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- Attached to
- ANJO-REPLACE ELECTRIC SUPPLY WIRE
- Solicitation number
- 140P5326Q0012
About this file
This is a Class Determination and Findings document authorizing the use of the Warranty of Construction clause in federal construction contracts issued by the South Atlantic Gulf Region's Contracting Division in Atlanta, Georgia, effective March 14, 2024, and expiring March 13, 2029.
The determination applies to all fixed-price construction solicitations and resultant contracts issued by Contracting Operations East, at the discretion of the Contracting Officer. The document establishes that warranty clauses are standard in the construction industry and should have no appreciable effect on contract costs, particularly since most construction materials are commercial items carrying manufacturer warranties. The findings support the inclusion of warranty provisions due to the difficulty in identifying defects at project acceptance, with environmental influences and extended system use often revealing defects over time. Administrative enforcement costs are considered minor compared to the costs incurred when warranties are unavailable. The Chief of the Contracting Office for Contracting Operations East is authorized to issue this class waiver in accordance with Department of the Interior Acquisition Regulation subpart 1446.704 and FAR 46.710(e). Should the CCO also serve as the Contracting Officer requiring CCO approval, additional approval must be obtained from the Bureau Procurement Chief.
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Text version
CLASS DETERMINATION AND FINDINGS
Use of Warranty of Construction Clause
In accordance with FAR 52.246-21, the use of contract clause "Warranty of Construction," is hereby authorized for use in all fixed-price construction solicitations/contracts issued by the South Atlantic Gulf Region, Contracting Division , Atlanta, Georgia.
FINDINGS
The South Atlantic Gulf Region proposes to include the "Warranty of Construction" clause in all fixed-price construction solicitations and resultant contracts.
The nature of the construction industry makes identification of potential defects difficult at time of acceptance of the project. Environmental influences and use of the system for a period of time are what may cause a defect to become apparent.
Warranties are standard in the construction industry. Therefore, the inclusion of the warranty clause is not expected to have an appreciable effect on cost.
Administrative costs and any difficulty in enforcing the warranty are considered minor in comparison with the costs incurred when a warranty is not available.
In most instances, materials used in construction projects are commercial and carry a manufacturer's warranty to perform as stated. As a result, the cost to the Government will be the same whether or not a warranty is included. However, a manufacturer's recommendation of application is frequently relied upon to supplement contract specifications, thereby making the warranty clause even more useful and beneficial to the Government.
DETERMINATION
The authority for use of warranties is found in the Department of the Interior Acquisition Regulation (DIAR), subpart 1446.704, whereas, "The Chief of the Contracting Office (CCO) is authorized to make the written determination to use a warranty in an acquisition." Although DIAR I 402.10 I defines: "Chief of the contracting <dfice" as the senior GS- I I 02 within a contracting office, the Bureau interpretation defines CCO as the Regional or Center Chief of Contracting (RCC), thus the RCC has the authority to issue a class waiver to use a warranty in an acquisition. Should the CCO also be the Contracting Officer (CO) for an action requiring approval of the CCO, approval must be obtained from the Bureau Procurement Chief.
Pursuant the prescription at FAR 46.710(e), the "Warranty of Construction" clause is approved for use, at the discretion of the CO, in all fixed-price construction solicitations and resultant contracts issued by Contracting Operations East.
Signed: 03/14/2024 Expires: 03/13/2029Chief of the Contracting Office
Contracting Operations East
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