BGMT 339 Introduction to Federal Contracting Week 6 learning activities

Learning Activity #1

You are preparing a firm fixed price (FFP) solicitation for the fielding of a new system. Do you include a requirement for the winning contractor to provide a warranty? Why or why not? What are some considerations?

Learning Activity #2

Why are there differing Inspection clauses in FAR Part 52? Pick one and give an example contract where it would be most applicable.

Learning Activity #1

You are preparing a firm fixed price (FFP) solicitation for the fielding of a new system. ? Why or why not? What are some considerations?

Do you include a requirement for the winning contractor to provide a warranty? Yes.

The principal purposes of a warranty in a Government contract are-

(1) To delineate the rights and obligations of the contractor and the Government for defective items and services; and

(2) To foster quality performance.

(b) Generally, a warranty should provide-

(1) A contractual right for the correction of defects notwithstanding any other requirement of the contract pertaining to acceptance of the supplies or services by the Government; and

(2) A stated period of time or use, or the occurrence of a specified event, after acceptance by the Government to assert a contractual right for the correction of defects.

(c) The benefits to be derived from a warranty must be commensurate with the cost of the warranty to the Government.

Why or why not?

The use of warranties is not mandatory. In determining whether a warranty is appropriate for a specific acquisition, the contracting officer shall consider the following factors:

What are some considerations?

(a) Nature and use of the supplies or services. This includes such factors as-

(1) Complexity and function.

(2) Degree of development.

(3) State of the art.

(4) End use.

(5) Difficulty in detecting defects before acceptance; and

(6) Potential harm to the Government if the item is defective.

(b) Cost. Warranty costs arise from-

(1) The contractor’s charge for accepting the deferred liability created by the warranty

(2) Government administration and enforcement of the warranty.

Learning Activity #2

Why are there differing Inspection clauses in FAR Part 52? Pick one and give an example contract where it would be most applicable.

The Contractor is responsible for performing or having performed all inspections and tests necessary to substantiate that the supplies or services furnished under this contract conform to contract requirements, including any applicable technical requirements for specified manufacturers’ parts. This clause takes precedence over any Government inspection and testing required in the contract ’s specifications, except for specialized inspections or tests specified to be performed solely by the Government.

52.246-2 Inspection of Supplies-Fixed-Price.

(a) Definition. "Supplies," as used in this clause, includes but is not limited to raw materials, components, intermediate assemblies, end products , and lots of supplies .

Example would be buying a computer, laptop. TV. The price is fixed on computers