FAR 46.704—Authority for use of warranties.
Plain-English Summary
FAR 46.704 is a short but important control on when the Government may include a warranty in an acquisition. It covers one topic: the authority and approval required before a warranty is used, and it ties that decision to agency-specific procedures rather than a one-size-fits-all FAR rule. In practice, this means a contracting officer cannot simply decide on their own to add a warranty clause; the decision must be made under the agency’s internal approval process. The section exists to ensure warranties are used deliberately, with management oversight, because warranties can shift risk, affect price, and create post-award administration burdens. For contractors, this section matters because warranty requirements may vary by agency and may be imposed only after the proper internal approval has been obtained. For contracting officers and acquisition teams, it is a reminder to check agency policy early in the acquisition planning process before drafting solicitation terms or negotiating contract language.
Key Rules
Agency approval is required
A warranty may be used in an acquisition only if it has been approved in accordance with the agency’s procedures. The FAR does not itself authorize warranties automatically; it requires compliance with the agency’s internal approval process.
Agency procedures control
The specific approval steps, officials, and documentation requirements come from the agency’s own procedures. Those procedures determine who may approve the warranty and what justification or review is needed.
Applies before use in acquisition
The approval requirement applies when deciding to include a warranty in the acquisition, not after award. The warranty should be vetted during acquisition planning and solicitation development, before it becomes a contract requirement.
Responsibilities
Contracting Officer
Ensure any proposed warranty has been approved under the applicable agency procedures before including it in the solicitation or contract. The contracting officer must verify the required internal approvals are in place and should not rely on informal or undocumented authorization.
Agency
Establish and follow procedures governing approval of warranties in acquisitions. The agency must define the approval chain, documentation, and any policy limits on when warranties may be used.
Acquisition/Program Officials
Identify whether a warranty is needed, justify its use, and obtain the required approvals through agency channels. They should coordinate early so the warranty requirement is properly supported and does not delay the procurement.
Contractor
Review warranty requirements as stated in the solicitation or contract and account for them in pricing, risk planning, and compliance efforts. The contractor should also seek clarification if the warranty terms appear inconsistent with the solicitation or seem to have been added without proper authority.
Practical Implications
This section is mainly a gatekeeping rule: if the agency approval process was not followed, the warranty requirement may be vulnerable to challenge or internal correction.
Contracting officers should check agency policy early, because warranty approval can affect solicitation timing, evaluation, and negotiations.
Contractors should expect warranty terms to vary across agencies and even across procurements within the same agency, depending on internal approval requirements.
A common pitfall is treating warranties as routine boilerplate; under this rule, they require affirmative approval and should be justified based on the acquisition’s needs.
Because the FAR text is brief, the real operational detail is in agency procedures, so users must consult both the FAR and the applicable agency supplement or internal policy.
Official Regulatory Text
The use of a warranty in an acquisition shall be approved in accordance with agency procedures.