Warranties on Commercial Items within DoD
Abstract
This report examines warranties on commercial items bought for use by DoD components. Although the study also included subsistence, textiles, and clothing, primary attention was given to administrative use vehicles, light trucks, household appliances, and material handling and construction equipment. The report concludes that emphasis must be placed on administration of warranty provisions by the activities using the equipment rather than by the contracting office and the terms of the contract; that responsibilities must be assigned to and procedures must be developed by the maintenance organizations at the user level; that in-house service warranties, a form of billback used extensively by private fleet owners, by state and local Governments, and by USPS and GSA, should be adopted by DoD organizations to get greater benefit from warranties on commercial items. Under the in-house service warranty, the using organization at its option, may take the equipment to a dealer for repair or do the work itself and bill the manufacturer for the cost of labor and parts used in doing the work. The report also concluded that maximum benefit would not be realized unless some way could be found to offset the disincentive of the current law which requires such reimbursements to go to the U.S. Treasury and not to the organization that did the work.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1980
- Accession Number
- ADA091121
Entities
People
- Richard P. White
- William G. Moeller
Organizations
- LMI