[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR46]

[Page 859]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 46_QUALITY ASSURANCE--Table of Contents
 
                         Subpart 46.7_Warranties
 
Sec.  46.707  Pricing aspects of fixed-price incentive contract warranties.

    If a fixed-price incentive contract contains a warranty (see 
46.708), the estimated cost of the warranty to the contractor should be 
considered in establishing the incentive target price and the ceiling 
price of the contract. All costs incurred, or estimated to be incurred, 
by the contractor in complying with the warranty shall be considered 
when establishing the total final price. Contractor compliance with the 
warranty after the establishment of the total final price shall be at no 
additional cost to the Government.