b.
Remedies.
(1) New Replacement Supplies. With respect to defective supplies, wherever
located, the warranty shall include the furnisheding, without cost to the
Government, F . O . B . c o n t r a c t o r ' s p l a n t , b r a n c h o r d e a l e r f a c i l i t y , o r F . O . B .
o r i g i n a l CONUS destination, or F.O.B. US Port of Embarkation, at the Government's
option, new supplies to replace any that prove to be desfective within the
warranty period.
(2) Corrective Action Options. In addition the Government shall have the
option (a) to return the vehicles or parts thereof to the contractor's plant,
branch, o r d e a l e r f a c i l i t y f o r c o r r e c t i o n , o r ( b ) t o c o r r e c t t h e s u p p l i e s i t s e l f .
When the Government elects to return the vehicle or parts to the Contract's
plant, branch or dealer facility, the cost of labor involved in the correction of
t h e d e f e c t i v e s u p p l i e s s h a l l b e b o r n e b y t h e c o n t r a c t o r . When the vehicle or
parts thereof are returned to the contractor for correction, the contractor shall
bear all transportation costs to the contractor's plant and return.
With respect
to defective supplies located within the 50 states, when the Government elects to
correct them itself, the cost of labor involved in the correction of defects shall
be borne by the contractor and shall be computed at the contractor's then pre-
vailing hourly rate for such services in that geographical area, based upon the
number of labor hours appearing in the contractor's flat rate time schedule manual,
or the Government's actual cost, whichever is less. With respect to defective
s u p p l i e s l o c a t e d o u t s i d e t h e 5 0 s t a t e s , when the Government elects to correct
them itself, the cost of labor involved shall be borne by the contractor at then
prevailing hourly rate in the geographical area for such services based upon the
number of labor hours appearing in the contractor's flat rate time schedule manual
or the Government's actual cost, whichever is less. A d d i t i o n a l l y , the contractor
shall be responsible for reasonable costs of disassembly/reassembly of items
necessarily removed in connection with repair or replacement on vehicles wherever
located.
C. N o t i f i c a t i o n .
If the Government elects to have warranty repair or replace-
ment performed by the contractor, the Government shall deliver the vehicle to
contractor's local facility or dealership for warranty corrective repair or re-
placement.
Receipt for such vehicle by the contractor's local facility or dealer-
ship will be deemed proper notification by the Government of any breach of the
warranty provided by this provision.
If the Government elects to effect warranty
repairs or replacement itself, the contractor shall be notified in writing of any
breach in the warranty within 30 days after discovery of the defect.
Within 10
days after receipt of such notices, the contractor shall submit to the Contracting
Officer a written recommendation as to the corrective action required to remedy
the breach.
In any event, the Contracting Officer may, upon the expiration of
the 10 day period set forth above, proceed with correction or replacement as set
forth in paragraph (c) above the contractor shall, notwithstanding any disagree-
m e n t r e g a r d i n g t h e e x i s t e n c e o f b r e a c h o f w a r r a n t y , c o m p l y with any Contracting
Officer directions related to such correction or replacement. After the notice
of breach, but not later than 30 days after receipt of the contractor's recom-
mendation for corrective action, t h e C o n t r a c t i n g O f f i c e r w i l l , i n w r i t i n g , n o t i f y
the contractor of the parts used by the Government in repair or replacement and
all other costs or expenses required for Government correction of warranty defect
as set forth in the paragraph (c) above.
The contractor shall respond w i t h i n
30 days after receipt of this notice, o f h i s i n t e n t i o n t o f u r n i s h i d e n t i f i e d
replacement parts and/or cost reimbursements to the Government. In the event
it is later determined that the contractor did not breach the warranty in
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