(c) See AR 700-139 for procedures on tracking and accumulating data on warranty costs.
46.770 -- Warranties in Weapon System Acquisitions.
(c) Authority to designate which features of a weapon system are its essential performance requirements and to subsequently modify or cancel such requirements is delegated to PEOs, for PEO-managed items, and to HCAs, for all other items. See Warranty Guidebook, published by the Defense Systems Management College, Fort Belvoir, VA 22060-5426, for information on selection of essential performance requirements.
46.770-5 -- Exemption for alternate source contractor(s).
The authority to grant exemptions is delegated to PEOs, for PEO-managed items, and to HCAs for all other items.
46.770-7 -- Cost-benefit analysis.
(c) Document the results of the analysis in the Price Negotiation Memorandum. If the contracting officer is uncertain that a cost-effective warranty can be obtained, and time does not permit performing further analysis, getting a waiver or making the required notifications, the contracting officer may award the contract if --
(i) The contract provides that the warranty may be deleted from the contract and an equitable adjustment obtained; and
(ii) The award on such a basis has been approved by the HCA. This approval authority may not be redelegated.
46.770-8 -- Waiver and notification procedures.
(b) Forward notification and reports through the same channels used to request a waiver. Forward notifications as soon as the decision to omit a warranty on essential performance requirements is made.
(c) Submit requests for waiver at least 45 calendar days prior to the anticipated award date. The contracting officer shall not award the contract until the waiver is approved and Congressional notification is made.
(1)
(iv) Include identification of all warranty costs and procedures used to evaluate cost effectiveness. This should include benefits of the warranty versus cost to the Government to administer and enforce the warranty, cost for correction or replacement in absence of a warranty, and costs to keep the warranty in effect.
(S-90) Each request for waiver shall also include the following information:
(a) Description of the efforts made to negotiate a modified warranty, i.e., tradeoff of contractor liability or duration of warranty period to reduce cost.
(b) Identification of warranties obtained on individual components when the entire system is not under warranty. If warranties were not obtained, provide rationale.
(c) Actions taken to preclude waivers on future procurements.