INTRODUCTION
SECTION I
the contractor's flat rate time schedule manual or the
until six months from date of acceptance, whichever occurs
Government's actual cost, whichever is less. Additionally,
first. The Government prior to placing each new vehicle in
the contractor shalt be responsible for reasonable costs of
storage and again at time of its withdrawal, shall notify the
disassembly/reassembly of items necessarily removed in
contractor thereof and identify each vehicle at its time in
connection with repair or replacement on vehicles wher-
and out of storage. Vehicles designated as Production
ever located.
Samples shall be treated as vehicles placed in storage for
warranty purposes.
If the Government elects to have warranty repair of
replacement performed by the contractor, the Government
If a Safety Recall defect occurs during vehicle warranty
shall deliver the vehicle to contractor's local facility or deal-
period, the contractor agrees to extend the term of the
ership for warranty corrective repair or replacement. Receipt
warranty by a period of time equal to the time period
for such vehicle by the contractor's local facility or dealer-
required to make necessary safety defect corrections. Addi-
ship will be deemed proper notification by the Government
tionally, to the extent the contractor or his supplier(s) pro-
of any breach of the warranty provided by this provision. If
vide to commercial customers a greater warranty for the
the Government elects to effect warranty repairs or replace-
supplies furnished herein, the contractor hereby likewise
ment itself, the contractor shall be notified in writing of any
provides such greater warranty to the Government. To the
breach in the warranty within 30 days after discovery of the
extent the terms of such greater warranty are inconsistent
defect. Within 10 days after receipt of such notice, the
with or conflict with this warranty, the provisions of such
contractor shall submit to the Contracting Officer a written
greater warranty shall govern.
recommendation as to the corrective action required to
With respect to defective supplies, wherever located, the
remedy the breach. In any event, the Contracting Officer
warranty shall include the furnishing, without cost to the
may, upon the expiration of the 10 day period set forth
Government, F.O.B. contractor's plant, branch or dealer
above, proceed with correction or replacement as set forth
facility, or F.O.B. original CONUS destination, or F.O.B. US
in paragraph d, above, and the contractor shall, notwith-
Port of Embarkation, at the Government's option, new sup-
standing any disagreement regarding the existence of a
plies to replace any that prove to be defective within the
breach of warranty, comply with any Contracting Officer
warranty period On all Government Owned Vehicles and
directions related to such correction or replacement. After
Foreign Military Sales (FMS) Vehicles destined for ship-
the notice of breach, but not later than 30 days after receipt
ment outside CONUS, the contractor's liability regarding
of the contractor's recommendation for corrective action,
warranty is limited to furnishing replacement parts F.O.B.
the Contracting Officer will, in writing, notify the contractor
CONUS port of debarkation for those parts which prove to
of the parts used by the Government in repair or replace-
be defective in material or workmanship. The contractor
ment and all other costs or expenses required for Govern-
shall designate a resident point of contact/agent in both
ment correction of warranty defect as set forth in the para-
West Germany and Korea to coordinate resolution of all
graph d above. The contractor shall respond within 30 days
warranty claims reported within those locations. The con-
after receipt of this notice, of his intention to furnish identi-
tractor's POC) agent will be responsive to claims filed,
fied replacement parts and/or cost reimbursements to the
assisting in the resolution of all valid warranty claims
Government. In the event it is later determined that the
reported, for the life of the contract and 15 months
contractor did not breach the warranty in paragraph c,
thereafter.
above, the contract price will be equitably adjusted pursu-
In addition, the Government shall have the option (a) to
ant to the terms of the "Changes" clause of the contract.
Failure to agree to such an equitable adjustment or upon
return the vehicles or parts thereof to the contractor's plant,
any determination to be made under this clause shall be a
branch or dealer facility for correction, or (b) to correct the
dispute concerning a question of fact within the meaning of
supplies itself. When the Government elects to return the
the "Disputes" clause of this contract.
vehicles or parts to the contractor's plant, branch or dealer
facility, the cost of labor Involved in the correction of the
Any supplies or parts thereof corrected or furnished in
defective supplies shall be borne by the contractor. When
replacement pursuant to this clause shall also be subject to
the vehicle or parts thereof are returned to the contractor
all provisions of this clause to the same extent as supplies
for correction, the contractor shall bear all transportation
initially delivered.
costs to the contractor's plant and return. With respect to
The Contractor shall prepare and furnish to the Govern-
defective supplies located within the 50 states, when the
ment, data and reports applicable toanycorrection required
Government elects to correct them itself, the cost of labor
under this clause (including revision and updating of all
involved in the correction of defects shall be borne by the
affected data called for under this contract) at no increase in
contractor and shall be computed at the contractor's then
the contract price.
prevailing hourly rate for such services in that geographical
area, based upon the number of labor hours appearing in
The Contractor shall furnish with his proposal a listing of
the contractor's flat rate time schedule manual, or the
distributors, dealers, franchise outlets where warranty
Government's actual cost, whichever is less. With respect
claims may be exercised
to defective supplies located outside the 50 states, when
The Contractor will take all actions necessary to assure that
the Government elects to correct them itself, the cost of
all current flat rate time schedule manuals concerning vehi-
labor involved shall be borne by the contractor at the then
cles under contract are on file with the TACOM Mainte-
prevailing hourly rate in the geographical area for such
nance Directorate (DRSTA-M), of if not on file, within 60
services based upon the number of labor hours appearing in
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