FAR 52.246-20—Warranty of Services.
Plain-English Summary
FAR 52.246-20, Warranty of Services, sets out the Government’s post-acceptance remedy when contracted services are defective or do not conform to contract requirements. It defines “acceptance” for purposes of the clause, establishes the contractor’s warranty that services will be free from defects in workmanship and conform to the contract at the time of acceptance, and requires the contracting officer to specify a notice period for identifying defects or nonconformance. The clause also explains the Government’s options after notice: require the contractor to correct or reperform the services, or decide that correction is unnecessary. If correction or reperformance is required, it must be at no cost to the Government, and any corrected or reperformed services remain covered by the same warranty. If the contractor does not comply, the Government may obtain replacement services and charge the contractor, or seek an equitable adjustment in price. If the Government chooses not to require correction or reperformance, the contracting officer must make an equitable adjustment in the contract price. In practice, this clause is important because it preserves a remedy after acceptance, allocates risk for defective service performance, and gives both parties a clear process for handling service deficiencies discovered after the Government has accepted the work.
Key Rules
Acceptance Has a Defined Meaning
For this clause, acceptance means the Government’s authorized approval of services as partial or complete performance of the contract. That definition matters because the warranty attaches at acceptance and the notice period runs from the event the contracting officer specifies.
Services Must Conform At Acceptance
The contractor warrants that all services will be free from defects in workmanship and conform to contract requirements at the time of acceptance, even if the Government has already inspected and accepted the work. Acceptance does not eliminate the warranty remedy for latent or later-discovered defects within the notice period.
Notice Period Must Be Specified
The contracting officer must insert a specific period or triggering event for giving written notice of defects or nonconformance, such as a number of days after acceptance or a period of use. If the notice is not timely under the clause, the Government may lose the ability to invoke the warranty remedy.
Government Chooses the Remedy
After notice, the contracting officer must state whether the contractor must correct or reperform the services, or whether the Government does not require correction. This decision controls the next steps and determines whether the contractor must act or whether the issue is resolved through price adjustment.
Correction Is At No Cost
If the contractor is required to correct or reperform, the work must be done at no cost to the Government. Corrected or reperformed services are themselves covered by the same warranty, so the contractor remains responsible for the quality of the remedial work.
Government May Cure Contractor Default
If the contractor fails or refuses to correct or reperform, the contracting officer may have the services corrected or replaced by contract or otherwise and charge the contractor the resulting cost. The Government may also seek an equitable adjustment in the contract price where appropriate.
No Correction Means Price Adjustment
If the Government decides not to require correction or reperformance, the contracting officer must make an equitable adjustment in the contract price. This prevents the Government from retaining the benefit of deficient services without accounting for the reduced value.
Responsibilities
Contracting Officer
Insert the specific notice period or triggering event in the clause, determine whether a reported defect or nonconformance falls within the warranty, provide written notice to the contractor, state whether correction or reperformance is required, and make any required equitable adjustment in the contract price. If the contractor does not comply, the contracting officer may arrange for replacement services and charge the contractor the resulting cost.
Contractor
Perform services that conform to contract requirements and are free from defects in workmanship at the time of acceptance, respond to written notice of defects or nonconformance, and correct or reperform defective services at no cost when required. The contractor must also bear responsibility for the warranty coverage of any corrected or reperformed services.
Government/Agency
Inspect and accept services, identify defects or nonconformance within the specified notice period, and decide whether correction, reperformance, or no corrective action is in the Government’s best interest. If the Government elects not to require correction, it must support the resulting equitable adjustment in price.
Practical Implications
The notice period is critical: if the contracting officer does not specify it clearly, or if the Government misses the deadline, the warranty remedy may be difficult or impossible to enforce.
This clause is especially important for services where defects may not be obvious at acceptance, because it preserves a post-acceptance remedy for workmanship problems and contract nonconformance.
Contractors should track acceptance dates and any use-based trigger carefully, because the warranty obligation can be invoked after performance is complete and may require free rework.
Contracting officers should document the defect, the notice, the remedy chosen, and any price adjustment or cost recovery to support the file and avoid disputes.
If the Government chooses not to require correction, it should ensure the equitable adjustment reflects the diminished value of the services and is not treated as a waiver of unrelated rights unless intended.
Official Regulatory Text
As prescribed in 46.710 (d) , insert a clause substantially as follows: Warranty of Services (May 2001) (a) Definition. "Acceptance," as used in this clause, 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 and identified supplies, or approves specific services, as partial or complete performance of the contract. (b) Notwithstanding inspection and acceptance by the Government or any provision concerning the conclusiveness thereof, the Contractor warrants that all services performed under this contract will, at the time of acceptance, be free from defects in workmanship and conform to the requirements of this contract. The Contracting Officer shall give written notice of any defect or nonconformance to the Contractor ____________ [ Contracting Officer shall insert the specific period of time in which notice shall be given to the Contractor; e.g.,"within 30 days from the date of acceptance by the Government,"; within 1000 hours of use by the Government;" or other specified event whose occurrence will terminate the period of notice, or combination of any applicable events or period of time ] . This notice shall state either- (1) That the Contractor shall correct or reperform any defective or nonconforming services; or (2) That the Government does not require correction or reperformance. (c) If the Contractor is required to correct or reperform, it shall be at no cost to the Government, and any services corrected or reperformed by the Contractor shall be subject to this clause to the same extent as work initially performed. If the Contractor fails or refuses to correct or reperform, the Contracting Officer may, by contract or otherwise, correct or replace with similar services and charge to the Contractor the cost occasioned to the Government thereby, or make an equitable adjustment in the contract price. (d) If the Government does not require correction or reperformance, the Contracting Officer shall make an equitable adjustment in the contract price. (End of clause)