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DOD Warranties: Improvements Needed in Implementation of Warranty Legislation

NSIAD-87-122 Published: Jul 21, 1987. Publicly Released: Jul 21, 1987.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) implementation of a statutory requirement that it obtain warranties on weapon systems.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct that warranties specifically state whether redesign is or is not a possible remedy under the warranty.
Closed – Implemented
The DAR Council will finalize and incorporate changes in the DFARS. Interim guidance was issued.
Department of Defense The Secretary of Defense should direct the military services to review a representative number of recent and future warranties to ensure that procuring activities are routinely: (1) doing cost-effectiveness analyses of proposed warranties; (2) delineating essential performance requirements and identifying how and when performance will be assessed; (3) considering storage time, coverage of repaired or replaced parts, and coordination of government-furnished components and related end items in establishing warranty duration periods; and (4) directing that warranted items be appropriately marked.
Closed – Implemented
The Office of the Assistant Secretary of Defense (P&L) believes that ongoing service procedures, a Defense Contract Audit Agency (DCAA) audit and guidance, and a proposed Army audit are a reasonable alternative.

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Topics

Authorizing legislationContract performanceDefense cost controlDefense procurementEquipment contractsStatutory lawWarrantiesWeapons systemsMilitary forcesProcurement