Weapons Acquisition: Warranty Law Should Be Repealed

Weapons Acquisition: Warranty Law Should Be Repealed PDF

Author:

Publisher:

Published: 1996

Total Pages: 47

ISBN-13:

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As part of the 1985 Department of Defense (DOD) Authorization Act Congress enacted legislation requiring DOD to obtain cost-effective warranties on weapon systems. The warranties were expected to improve weapon system reliability by providing a mechanism to hold contractors liable for poor performance. Past reviews by GAO' and others concluded that DOD was not properly managing its warranty program. This report assesses whether the warranties being obtained for weapon systems provide the expected benefits to the government and whether warranties, as required by 10 U.S.C. 2403, are compatible with weapon system acquisitions. As part of the 1985 Department of Defense (DOD) Authorization Act Congress enacted legislation requiring DOD to obtain cost-effective warranties on weapon systems. The warranties were expected to improve weapon system reliability by providing a mechanism to hold contractors liable for poor performance. Past reviews by GAO' and others concluded that DOD was not properly managing its warranty program. This report assesses whether the warranties being obtained for weapon systems provide the expected benefits to the government and whether warranties, as required by 10 U.S.C. 2403, are compatible with weapon system acquisitions.

Weapon System Warranties

Weapon System Warranties PDF

Author: Timothy C. Ceteras

Publisher:

Published: 1988

Total Pages: 106

ISBN-13:

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Warranties are required by law to be obtained on all weapon systems purchased by the Department of Defense. As a result, the three services within the DoD must face a variety of issues associated with weapon system warranties. This thesis examines the issues associated with the acquisition, enforcement, and subsequent evaluation of warranties. It then examines how each of the three services treat these issues in their supplement to the Federal Acquisition Regulation and in their primary warranty regulation. Prior to examining the foregoing issues, the thesis begins by first reviewing the background of warranties and discussing some theoretical considerations. The issues themselves are then presented followed by their treatment by the DoD. After the examination of the issues and their treatment by the DoD, recommendations are made for suggested improvements to the services' regulations. This thesis is useful in that it identifies several areas that should be addressed by the military departments in their warranty guidance. It also advances recommendations for improvements to the regulations. Theses. (FR).

Warranties for Weapons

Warranties for Weapons PDF

Author: J. P. Stucker

Publisher:

Published: 1987

Total Pages: 90

ISBN-13:

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Warranties have been selectively applied to weapon systems acquisition over several decades . However, in 1983 Congress passed the first law requiring that military contractors provide warranties on all major weapons sold to the Services. Such blanket application raises issues both of tailoring warranties to the wide range of weapons and acquisition environments and of proper implementation policy and procedural guidelines. This study concludes that warranties can have a positive effect on selected acquisition programs. Analysis of pre-law warranties suggests that factors contributing to warranty success include: specific, easily measurable objectives; explicit contractor incentives and remedies; explicit government duties; and reasonable prices and expectations. An initial survey of post-law warranties, however, reveals that many warranties do not appear to adequately detail either their objectives or the remedies to be applied if those objectives are not met. (Author).

Warranties in Weapon System Procurement: An Analysis of Practice and Theory

Warranties in Weapon System Procurement: An Analysis of Practice and Theory PDF

Author:

Publisher:

Published: 1987

Total Pages: 0

ISBN-13:

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Congressional legislation requires that all major weapon systems contracts signed after January 1, 1985, contain three types of written warranties: design-manufacture, materials-workmanship, and essential performance requirements. This study reviews the specifics of the law, its legislative history, and Congressional intent revealed in relevant hearings. Through analysis of recent weapon system contracts from all the Services, supplemented by field interviews with contracting personnel, the study ascertains the changes in contractual warranty provisions effected by the mandate. Research is then directed more deeply into the functions of weapon systems warranties and their economic appropriateness in a Department of Defense context.

Case Study of the Application of the Weapon System Warranty on the C-130 Program

Case Study of the Application of the Weapon System Warranty on the C-130 Program PDF

Author: Jiley E. McNease

Publisher:

Published: 1986

Total Pages: 64

ISBN-13:

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This study examined what government imposed changes and/or modifications to the C-130 during the past five year period would have voided a weapon system warranty, had one been in effect (in accordance with current public laws) from the contractor's viewpoint. Specifically, it analyzed: (1) what criteria should be used to determine if a proposed change and/or modification has the potential to void the system level warranty, (2) whether performance guarantees would have been workable for the C-130, or would hostile and other actions have voided such a warranty, and (3) how the present weapon system warranty clauses should be designed to preclude contractor avoidance and still protect the government's interest. Literature review addressed the Federal Acquisition Regulation, which covered warranties in general terms prior to the requirement of a weapon system warranty; the Weapon Systems warranty Act (Public Law 98-212); and the Weapon Systems Warranty Act modifications (Public Law 98-525).

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