Attachment 0026 - Warranty Terms and Conditions.docx

MET Trailer Warranty Terms and Conditions Attachment 0026

(a) Definitions:

(1) The word "acceptance," as used herein means the execution of the Acceptance Block and signing of a DD Form 250 by the authorized Government representative, unless vehicles are placed in storage in which case, acceptance shall mean date of shipment from the facility as reflected on the DD Form 1149 or DD form 1348-1.

(2) The word "supplies", as used herein means the end item and all parts and accessories thereof, furnished by the contractor.

(3) The word "defect", as used herein means any condition or characteristics in the supplies that is not in compliance with the contract or that does not otherwise function as intended.

(4) The word "correction", as used herein means the repair of defective supplies with the Government having the option to correct the defect or direct the contractor to make the correction.

(5) The word "pass through", as used herein means any warranty provided to the contractor by its suppliers shall be passed through to the Government.

(b) Provisions:

(1) If a safety defect occurs during the warranty period that removes the end item(s) from operation and makes the end item non-mission capable (NMC), the contractor agrees to extend the warranty for each affected end item by a period of time from notification of the NMC status until the end item is corrected and made operable. If the contractor or its suppliers provide to commercial customers a greater warranty for the end item or its components, the contractor shall further agree to provide such greater warranty to the Government upon acceptance.

(2) Any supplies corrected or replaced under this warranty shall carry the same warranty as originally delivered.

(3) Components and parts provided as Government Furnished Equipment (GFE) are not covered under the terms of this warranty.

(c) Notification:

(1) The Government will notify the contractor following Government discovery of a defect in supplies. This will be the contractor’s official notification of a warranty claim and initiates the time constraints for the contractor to correct the defect deficiency. The Government notification will include tractor serial number, miles, part number of the defective part, circumstances surrounding the defect, whether the Government has elected to (1) to correct the defect, or (2) to direct the contractor to correct the defect.

(d) Remedies - Government Correction: If the Government elects to correct the defect, the following applies:

(1) If the Government provides the replacement parts for the defective supplies through the Government’s own supply channels, the contractor shall reimburse the Government the cost of the replacement parts. The reimbursement cost will be established based upon the amount in contractor’s current commercial dealer net price list or the Government’s Army Master Data File (AMDF) price, whichever is less.

(2) If the Government directs the contractor to provide the replacement parts for defective supplies, the contractor shall furnish to the Government, without cost, the new supplies delivered to the Government repair locations. The contractor shall furnish replacement parts within ten working days after the contractor receives Government notification, except when an alternate timeline is approved by the PCO.

(3) The contractor shall reimburse the Government for the cost of the end item disassembly and reassembly. The cost of the labor involved will be computed at the local labor rate at the Government location performing the work multiplied by the number of labor hours for such services appearing in the contractor flat rate time schedule manual or the Government Maintenance Allocation Chart (MAC), whichever is less.

(4) The contractor shall pay the Government by the 15th day of each month for all warranty claims submitted by the Government for reimbursement which the contractor received during the previous month. The monthly payment shall be by check made payable to: United States Treasury. Mailed to Mrs. Danielle Trever, U.S. Army Tank-Automotive Armaments Command, BLDG 230 Room 103W, Warren, MI 48397-5000. The contractor shall include with the payment a statement which identifies the claim number, Unit Identification Code (UIC) of each claim, date of each claim, total dollars broken out between parts and labor and contract number.

(e) Remedies - Contractor Correction: If the Government directs the contractor to correct the defect, the following applies:

(1) The contractor shall furnish all material required to correct the defective supplies. The contractor shall bear the cost of these materials and any of their transportation costs.

(2) The contractor shall have the option to (a) correct the supplies in the field or (b) return the end item or parts to the contractor designated facility for correction. If the contractor elects to correct defects in the end item or components at the contractor facility, the contractor shall arrange and bear all transportation costs of the supplies to its facility and the return to the user.

(3) The contractor shall bear all costs involved in the correction.

(4) The contractor shall notify the warranty claimant before initiating the corrective action. This shall be done within 5 working days of receiving claimant notice. The contractor notification to the claimant shall be verbal and electronically (telephonic and email) and shall indicate whether the contractor elects to correct the defect in the field (on site) or at the contractor facility, the name and location of the repair facility if the contractor facility will be used, the date on which the repair work will be done, and the dealer or individual who will perform the work.

(5) As a minimum, the work order shall identify the: (a) specific defect, (b) corrective action (c) all parts required (d) labor hours and (e) serial number of the end item.

(6) Should the contractor fail to accomplish required warranty corrections within 10 working days after notification of warranty claim, the contractor agrees to submit their corrective action timeline to the PCO and to extend, at no additional cost to the Government, the terms of coverage of this warranty for a minimum of thirty (30) days or the actual time of repair whichever is greater beginning with the Government’s formal notification of claim until the date the supplies are corrected.

(f) Contractor Rights and Remedies

(1) The contractor shall have the right to inspect any defective supplies, wherever located, within 30 days of notification of warranty claim to evaluate the cause of the problem and verify the existence of the defect, at no additional cost to the Government. If the Government is doing the repairs and does not receive instructions from the contractor within the 30 day period, the Government will dispose of the defective supplies. If the contractor is doing the repairs and the contractor determines the defective supplies are clearly non-warrantable the contractor shall stop repair actions and notify the owning unit warranty claimant or the claimant warranty office. This right does not relieve the contractor of its responsibility to initiate the warranty replacement/repair action when the Government notifies the contractor of a warranty claim.

(2) If the contractor believes that a previously accepted warranty claim action is invalid, this warranty claim shall be considered a dispute and processed through the Disputes clause of this contract.

(g) General Warranty Matters

(1) The rights and remedies provided to the Government in this clause are in addition to and do not limit any rights afforded to the Government by any other clause in the contract.

(2) This warranty does not apply to any damage or failure to perform caused by misuse or abuse of the vehicle, combat damage, fair wear and tear items (i.e. brake shoes, track pads, wiper blades) or by the government failure to perform proper maintenance or service on the end item.

Distribution Statement A – Approved for Public Release; distribution unlimited