[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR46]



[Page 874-875]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 46_QUALITY ASSURANCE--Table of Contents

 

                         Subpart 46.7_Warranties

 

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



[[Page 875]]



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.