FAC Number: 2022-08
Effective Date: 09/23/2022

46.705 Limitations.

      (a) Except for the warranties in the clauses at 52.246-3, Inspection of Supplies-Cost-Reimbursement, and 52.246-8, Inspection of Research and Development-Cost-Reimbursement, the contracting officer shall not include warranties in cost-reimbursement contracts, unless authorized in accordance with agency regulations (see 46.708).

      (b) Warranty clauses shall not limit the Government’s rights under an inspection clause (see subpart  46.3) in relation to latent defects, fraud, or gross mistakes that amount to fraud.

      (c) Except for warranty clauses in construction contracts, warranty clauses shall provide that the warranty applies notwithstanding inspection and acceptance or other clauses or terms of the contract.

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