The Regulation of Federal Acquisition (FAR) section 46.703 basically envisages the law of warranty. This statute sets the reasons for the need for warranties, defines the types and gives the scope and overview thereof. The first segment of this law gives the scope and overview of the warranty requirements. It gives Program Managers (PM), Logistic Managers (LM), Contracting Officers Representatives (COR), Contracting Officers (CO) and Project Officers (PO), together with others who are responsible for the implementation and development of warranty guidelines and steps to this great task. For example, the first step to developing a warranty is establishing a warranty team, followed by selecting a warranty type, followed by other steps and finally documentation is the final step. All these guidelines are found in section 1.1 of this specific law. (Henderson 1999)
The section that deals with the above is section 1.2 talks about regulatory requirements which include the DFARS that gives the contracting offices guidelines on warranty acquisition on commercial items and supplies and services on fixed price items. This law is very widely defined and exhausts any question or issue that may arise in the subject of warranties. It goes ahead to give the types of warranties, the planning and administration thereof and even gives the cost/benefit analysis of warranties. (Henderson 1999)
Besides the above information, this statute or part of the law also gives the criteria that should be used and followed by the government when invoking the use of “Warranty Provision” when there is a gross mistake, or defect or even fraud in the goods provided by and to the government (United States 1990). This happens when the government, being responsible for transportation, was responsible for the damage incurred. This gives it full responsibility to reimburse the owner. When there is cheating or stealing of an item that is under the care of the government, then the government has full responsibility of incurring the costs of reimbursing the owner. If it was the legal owner and it is responsible for the fraud or damage, then the responsibility still belongs to it.
Express Warranty is a contract (an agreement) between a buyer and a seller to provide cover and repair or replacement for components of the product for a specified period of time. In layman’s terms, it is the promise of a seller to guarantee some or all the products bought from him or her. An Implied Warranty on the other hand is the one that comes from a transaction nature. It arises from the buyer’s understanding rather than the expressed intention of the seller. In this case, there are two types of Implied Warranty which are envisaged in Article 2 of the code of Uniform Commercial and have been adopted by each of the fifty four states in different senses. The two are; one, warranty of merchantability which empresses the merchantability of goods. It ensures that goods conform to the expectations of ordinary buyers. If it has hidden defects, then this warranty applies and the buyer has the right to return the good and demand for another. (United States 1996)
Nevertheless, chapter 18 of the Government Contract Guidebook is generally about the law developed to address the grievances of contractors in reference to performance, award and nom-performance of their contracts. It gives policies and regulations of administering contractual agreements between and among parties and addresses the issues that may arise in between. This part of the law is highly specialized and sometimes seems intimidating, overwhelming and even confusing. It addresses executive orders, court injunctions and decisions made by administrative tribunals. In addition, this contract law talks about Public Procurement or Government Procurement and the associated Public Contracts. Yet, it also touches on Private Contracts and their relative association with the government.
Contractual formulation as outlined in the Federal Procurement Framework (FPF) is a task that need not be taken lightly. The legal elements are basically the parties and the agreement. If any of the elements is absent, then there is no need for a contract. In as much as solicitation for contracts may be illegal in some quarters, it is not where contacts are concerned. Contracts must be solicited for. The government allows this. However, what it does not allow is corruption through bribery. Bribery is illegal. Nevertheless, solicitation is not. Another point to put forward regards costs. A contract is an agreement. The costs are outlined in the specific agreement and the cost of implementation of a contract must not exceed the cost of obtaining it. Payment is made to the contractor. Financing is made to the contract tee and the contactor does the financing (United States 1996). The profit made is obtained by the contract tee.
The specific clauses in Federal Acquisition Regulation that meet contracting actions and compliance as well as requirements relating to dispute regulation are outlined. For example, Subchapter A talks about Federal Acquisition System. This outlines the personal conflicts and how to resolve them as well as proper and improper practices as far as business is concerned. It also talks of administrative matters. Here, both the government and the parties involved must be involved (Henderson 1999).
Subchapter B outlines the requirements and the governing regulations that relate to the publication of Contract Actions, Acquisition Planning and Competition Requirements. It also gives the qualification of contractors. These clauses are meant to protect both the parties involved in a contractual agreement. The function of the government in this case is regulation and overseeing (United States 1990). If it is a public contract then the government gains more responsibility.
References
Henderson, L. W., & Thuma, R. S. (1999). Quality assurance in dialysis. Dordrecht: Kluwer Academic Publishers.
United States, United States, & United States (1990). Federal acquisition regulation. Washington, DC: General Services Administration.
United States (1996). Air Force federal acquisition regulation supplement (AFFARS). Washington, D.C: Dept. of the Air Force.
