TM 5-3820-245-14&P
(4) With respect to defective supplies, wherever located, the warranty shall include the furnishing, without cost
to the government, F.O.B. contractor's plant, branch or dealer facility or F.O.B. original CONUS destination or F.O.B.
US Port of Embarkation, at the government's option, new supplies to replace any that prove to be defective within the
warranty period. On all government owned vehicles and Foreign Military Sales (FMS) vehicles destined for shipment
outside CONUS, the contractor's liability regarding warranty is limited to furnishing replacement parts F.O.B. CONUS
port of debarkation for those parts which prove to be defective in material or workmanship.
(5) In addition, the government shall have the option (a) to return the vehicles or parts thereof to the
contractor's plant, branch or dealer facility for correction or (b) to correct the supplies itself. When the government elects
to return the vehicles or parts to the contractor's plant, branch or dealer facility, the cost of labor involved in the
correction of the defective supplies shall be borne by the contractor. When the vehicle or parts thereof are returned to
the contractor for correction, the contractor shall bear all transportation costs to the contractor's plant and return. With
respect to defective supplies located within the 50 states, when the government elects to correct them itself, the cost of
labor involved in the correction of defects shall be borne by the contractor and shall be computed at the contractor's then
prevailing hourly rate for such services in that geographical area, based upon the number of labor hours appearing in the
contractor's flat rate time schedule manual, or the government's actual cost, whichever is less. With respect to defective
supplies located outside the 50 states, when the government elects to correct them itself, the cost of labor involved shall
be borne by the contractor at the then prevailing hourly rate in the geographical-area for such services based upon the
number of labor hours appearing in the contractor's flat rate time schedule manual or the government's actual cost,
whichever is less. Additionally, the contractor shall be responsible for reasonable costs of disassembly/reassembly of
items necessarily removed in connection with repair or replacement on vehicles wherever located.
(6) If the government elects to have warranty repair or replacement performed by the contractor, the
government shall deliver the vehicle to contractor's local facility or dealership for warranty corrective repair or
replacement. Receipt for such vehicle by the contractor's local facility or dealership will be deemed proper notification by
the government of any breach of the warranty provided by this provision. If the government elects to effect warranty
repairs or replacement itself, the contractor shall be notified in writing of any breach in the warranty within 30 days after
discovery of the defect. Within 10 days after receipt of such notice, the contractor shall submit to the Contracting Officer
a written recommendation as to the corrective action required to remedy the breach. In any event, the Contracting
Officer may, upon the expiration of the 10 day period set forth above, proceed with correction or replacement as set forth
in paragraph d, above, and the contractor shall, notwithstanding any disagreement regarding the existence of a breach of
warranty, comply with any Contracting Officer directions related to such correction or replacement. After the notice of
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