FAR 52.246-17—Warranty of Supplies of a Noncomplex Nature.
Plain-English Summary
FAR 52.246-17 establishes a warranty regime for supplies of a noncomplex nature, meaning relatively straightforward items where defects and nonconformance can be identified and corrected without the more elaborate warranty structures used for complex systems. The clause covers the definition of key terms such as acceptance and supplies, the contractor’s express warranty that delivered supplies will be free from defects in material and workmanship and will conform to contract requirements, and the contractor’s separate warranty that preservation, packaging, packing, marking, and shipment preparation will also comply with the contract. It also addresses who pays transportation costs when supplies must be returned, corrected, or replaced; how warranty coverage applies to corrected or replacement items; and the exclusion of implied warranties of merchantability and fitness for a particular purpose. On the Government side, the clause sets the time limit for giving written notice of breach, the remedies available after notice, and special procedures when inspection is performed by sampling, including grouping supplies, projecting sample results, screening, returning supplies, and requiring equitable adjustments. It further gives the Government a self-help remedy to correct or replace nonconforming supplies from another source and charge the contractor when the contractor fails to act timely or endangers delivery performance. In practice, this clause matters because it shifts post-acceptance risk back to the contractor for a defined period, gives the Government a clear path to enforce quality obligations, and requires both parties to track delivery, notice, and corrective-action deadlines carefully.
Key Rules
Express warranty after acceptance
The contractor warrants the supplies even after Government inspection and acceptance. Acceptance does not eliminate the contractor’s obligation to deliver supplies that conform to the contract and are free from defects in material and workmanship during the stated warranty period or until the stated event occurs.
Packaging and shipment covered
The warranty is not limited to the item itself. It also covers preservation, packaging, packing, marking, and preparation for shipment, so failures in those areas can trigger warranty liability if they do not meet contract requirements.
Notice deadline required
The Contracting Officer must give written notice of a breach within the contract-specified period, such as 45 days after the last delivery or after discovery of the defect. If the Government misses the notice deadline, warranty enforcement may be jeopardized.
Government remedy choices
After timely notice, the Contracting Officer may require prompt correction or replacement, or may keep the supplies and reduce the contract price by an equitable amount. The remedy must be exercised within a reasonable time after notice.
Sampling-based warranty actions
If the contract uses sampling inspection, warranty determinations may be made using the contract’s sampling procedures. The Contracting Officer may group supplies, use the required sample size, project results across shipments, and avoid reconstituting original inspection lots.
Screening and return options
For grouped supplies subject to warranty action, the Government may require an equitable adjustment, screen the supplies at the contractor’s expense, require the contractor to screen at Government-designated locations in the contiguous United States, or return the supplies to the contractor for screening and correction or replacement.
Government self-help remedy
If the contractor fails to redeliver corrected or replacement supplies on time, or fails to accept return or make progress so as to endanger delivery performance and does not cure within the required notice period, the Government may obtain substitute supplies and charge the contractor the resulting cost.
Replacement items get new warranty
Corrected or replacement supplies are themselves covered by the same warranty terms. Their warranty period runs from the date the corrected or replacement supplies are delivered, and lasts for the same duration as the original warranty.
Implied warranties excluded
The clause expressly excludes implied warranties of merchantability and fitness for a particular purpose. The contractor’s warranty obligations are therefore defined by the clause and the contract, not by those implied warranty doctrines.
Responsibilities
Contracting Officer
Insert the specific warranty period or terminating event and the notice period for breach; determine whether a breach has occurred; provide timely written notice; choose the appropriate remedy after notice; apply sampling procedures correctly when inspection is by sampling; and, when necessary, authorize Government correction or replacement and assess the resulting costs to the contractor.
Contractor
Deliver supplies that conform to all contract requirements and are free from defects in material and workmanship; ensure preservation, packaging, packing, marking, and shipment preparation comply with the contract; bear transportation responsibility and costs within the clause limits when returns or replacements are required; correct or replace nonconforming supplies promptly; and accept return or screening obligations when directed.
Government inspectors/acceptance officials
Inspect and accept supplies in accordance with the contract, while recognizing that acceptance does not waive the express warranty; preserve evidence of defects or nonconformance for warranty action; and support sampling-based determinations when the contract uses sampling procedures.
Agency/Program office
Coordinate with contracting personnel to identify defects, track performance issues during the warranty period, and ensure operational users report nonconformance promptly enough for the Contracting Officer to meet the notice deadline.
Practical Implications
This clause gives the Government a post-acceptance remedy, so contractors cannot treat acceptance as the end of quality responsibility. They need internal controls for manufacturing quality, packaging, shipment, and traceability through the warranty period.
The notice deadline is critical. Government personnel should document defects quickly and send written notice within the specified time, while contractors should watch for late notices and preserve records that may support a timeliness defense.
Transportation costs can become a real expense on returns and replacements, but the contractor’s liability is capped at the usual commercial shipping cost between the delivery point and the plant and back. Parties should understand that cap when negotiating or administering claims.
When sampling inspection is used, warranty disputes can affect more than the exact units found defective because the clause allows projection of sample results across grouped supplies or shipments. Contractors should maintain lot control and quality records to challenge overbroad projections if needed.
Replacement or corrected items are not a fresh escape from warranty risk; they carry the same warranty period starting on redelivery. Contractors should treat warranty repairs and replacements as part of the original performance obligation, not as a one-time fix.
Official Regulatory Text
As prescribed in 46.710 (a)(1) , insert a clause substantially as follows: Warranty of Supplies of a Noncomplex Nature (June 2003) (a) Definitions. As used in this clause- Acceptance means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing supplies, or approves specific services as partial or complete performance of the contract. Supplies means the end items furnished by the Contractor and related services required under this contract. The word does not include "data." (b) Contractor’s obligations. (1) Notwithstanding inspection and acceptance by the Government of supplies furnished under this contract, or any condition of this contract concerning the conclusiveness thereof, the Contractor warrants that for ________ [ Contracting Officer shall state specific period of time after delivery, or the specified event whose occurrence will terminate the warranty period; e.g.,the number of miles or hours of use, or combinations of any applicable events or periods of time ] - (i) All supplies furnished under this contract will be free from defects in material or workmanship and will conform with all requirements of this contract; and (ii) The preservation, packaging, packing, and marking, and the preparation for, and method of, shipment of such supplies will conform with the requirements of this contract. (2) When return, correction, or replacement is required, transportation charges and responsibility for the supplies while in transit shall be borne by the Contractor. However, the Contractor’s liability for the transportation charges shall not exceed an amount equal to the cost of transportation by the usual commercial method of shipment between the place of delivery specified in this contract and the Contractor’s plant, and return. (3) Any supplies or parts thereof, corrected or furnished in replacement under this clause, shall also be subject to the terms of this clause to the same extent as supplies initially delivered. The warranty, with respect to supplies or parts thereof, shall be equal in duration to that in paragraph (b)(1) of this clause and shall run from the date of delivery of the corrected or replaced supplies. (4) All implied warranties of merchantability and "fitness for a particular purpose" are excluded from any obligation contained in this contract. (c) Remedies available to the Government. (1) The Contracting Officer shall give written notice to the Contractor of any breach of warranties in paragraph (b)(1) of this clause within ________ [ Contracting Officer shall insert specific period of time; e.g.,"45days of the last delivery under this contract," or "45days after discovery of the defect" ] . (2) Within a reasonable time after the notice, the Contracting Officer may either- (i) Require, by written notice, the prompt correction or replacement of any supplies or parts thereof (including preservation, packaging, packing, and marking) that do not conform with the requirements of this contract within the meaning of paragraph (b)(1) of this clause; or (ii) Retain such supplies and reduce the contract price by an amount equitable under the circumstances. (3) (i) If the contract provides for inspection of supplies by sampling procedures, conformance of supplies or components subject to warranty action shall be determined by the applicable sampling procedures in the contract. The Contracting Officer- (A) May, for sampling purposes, group any supplies delivered under this contract; (B) Shall require the size of the sample to be that required by sampling procedures specified in the contract for the quantity of supplies on which warranty action is proposed; (C) May project warranty sampling results over supplies in the same shipment or other supplies contained in other shipments even though all of such supplies are not present at the point of reinspection; provided, that the supplies remaining are reasonably representative of the quantity on which warranty action is proposed; and (D) Need not use the same lot size as on original inspection or reconstitute the original inspection lots. (ii) Within a reasonable time after notice of any breach of the warranties specified in paragraph (b)(1) of this clause, the Contracting Officer may exercise one or more of the following options: (A) Require an equitable adjustment in the contract price for any group of supplies. (B) Screen the supplies grouped for warranty action under this clause at the Contractor’s expense and return all nonconforming supplies to the Contractor for correction or replacement. (C) Require the Contractor to screen the supplies at locations designated by the Government within the contiguous United States and to correct or replace all nonconforming supplies. (D) Return the supplies grouped for warranty action under this clause to the Contractor (irrespective of the f.o.b. point or the point of acceptance) for screening and correction or replacement. (4) (i) The Contracting Officer may, by contract or otherwise, correct or replace the nonconforming supplies with similar supplies from another source and charge to the Contractor the cost occasioned to the Government thereby if the Contractor- (A) Fails to make redelivery of the corrected or replaced supplies within the time established for their return; or (B) Fails either to accept return of the nonconforming supplies or fails to make progress after their return to correct or replace them so as to endanger performance of the delivery schedule, and in either of these circumstances does not cure such failure within a period of 10 days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer specifying such failure. (ii) Instead of correction or replacement by the Government, the Contracting Officer may require an equitable adjustment of the contract price. In addition, if the Contractor fails to furnish timely disposition instructions, the Contracting Officer may dispose of the nonconforming supplies for the Contractor’s account in a reasonable manner. The Government is entitled to reimbursement from the Contractor, or from the proceeds of such disposal, for the reasonable expenses of the care and disposition of the nonconforming supplies, as well as for excess costs incurred or to be incurred. (5) The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of this contract. (End of clause) Alternate I [Reserved] Alternate II (Apr 1984) . If it is desirable to specify that necessary transportation incident to correction or replacement will be at the Government’s expense (as might be the case if, for example, the cost of a warranty would otherwise be prohibitive), substitute a paragraph substantially the same as the following paragraph (b)(2) for paragraph (b)(2) of the basic clause: (2) If correction or replacement is required and transportation of supplies in connection with correction or replacement is necessary, transportation charges and responsibility for the supplies while in transit shall be borne by the Government. Alternate III (Apr 1984) . If the supplies cannot be obtained from another source, substitute a paragraph substantially the same as the following paragraph (c)(4) for paragraph (c)(4) of the basic clause: (4) If the Contractor does not agree as to responsibility to correct or replace the supplies delivered, the Contractor shall nevertheless proceed in accordance with the written request issued by the Contracting Officer under paragraph (c)(2) of this clause to correct or replace the defective or nonconforming supplies. In the event it is later determined that the supplies were not defective or nonconforming within the terms and conditions of this clause, the contract price will be equitably adjusted. Alternate IV (Apr 1984) . If a fixed-price incentive contract is contemplated, add a paragraph substantially the same as the following paragraph (c)(6) to the basic clause: (6) All costs incurred or estimated to be incurred by the Contractor in complying with this clause shall be considered when negotiating the total final price under the Incentive Price Revision clause of this contract. After establishment of the total final price, Contractor compliance with this clause shall be at no increase in the total final price. Any equitable adjustment made under paragraph (c)(2) of this clause shall be governed by the paragraph entitled "Equitable Adjustments Under Other Clauses" in the Incentive Price Revision clause of this contract. Alternate V (Apr 1984) . If it is anticipated that recovery of the warranted item will involve considerable Government expense for disassembly and/or reassembly of larger items, add a paragraph substantially the same as the following paragraph (c)(6) to the basic clause. Redesignate the additional paragraph as "(c)(7)" if Alternate IV is also being used. (6) The Contractor shall be liable for the reasonable costs of disassembly and/or reassembly of larger items when it is necessary to remove the supplies to be inspected and/or returned for correction or replacement.