b. Corrective Action Options. In addition, the Gov-
covery of the defect. Within 10 days after receipt of such
ernment shall have the option (a) to return the vehicles or
notices, the contractor shall submit to the Contracting
officer a written recommendation as to the corrective
parts thereof to the contractors plant, branch or desig-
nated dealer facility for correction, or (b) to correct the
action required to remedy the obligation. In any event,
supplies itself. When the Government elects to return the
the Contracting Officer may, upon the expiration of the
vehicle or parts to the Contractor's plant. branch or de-
10 day period set forth above, proceed with correction or
signated dealer facility, the cost of labor involved in the
replacement as set forth in paragraph (c above and the
correction of the defective supplies shall be borne by the
contractor shall, notwithstanding any disagreement
contractor. When the vehicle or parts thereof are return-
regarding the existence of an obligation of warranty,
ed to the contractor for correction, the contractor shall
comply with any Contracting Officer directions related
bear all transportation costs to the contract's plant and
to such correction or replacement. After the notice of an
return. With respect to defective supplies located within
obligation, but not later than 30 days after receipt of the
the 50 states, when the Government elects to correct
contractors recommendation for corrective action, the
them itself, the cost of labor involved in the correction of
Contracting Officer will, in writing, notify the contractor
defects shall be borne by the contractor and shall be
of the parts used by the Government in repair or replace-
based upon the number of labor hours appearing in the
ment and all other costs or expenses required for Gov-
contractor's flat rate time schedule manual, or the
ernment correction of warranty defect as set forth in the
Government's actual cost, whichever is less. With re-
paragraph (c) above. The contractor shall respond within
spect to defective supplies located outside the 50 states,
30 days after receipt of this notice. of his intention to fur-
when the Government elects to correct them itself, the
nish identified replacement parts and/or cost reim-
cost of labor involved shall be borne by the contractor at
bursements to the Government. In the event it is later
the then prevailing hourly rate in the geographical area
determined that the contractor did not honor the war-
ranty in paragraph (b) above, the contract price will be
for such services based upon the number of labor hours
appearing in the contractor's flat rate time schedule
equitably adjusted pursuant to the terms of the "Changes"
manual or the Government's actual cost, whichever is
clause of the contract. Failure to agree to such an
less. Additionally, the contractor shall be responsible for
equitable adjustment or upon any determination to be
reasonable costs of disassembly/reassembly of items
made under this clause shall be a dispute concerning a
necessarily removed in connection with repair or replace-
question of fact within the meaning of the "Disputes"
ment on vehicles wherever located.
clause of this contract.
c. Notification If the Government elects to have war-
d. Corrected or Replaced Supplies. Any supplies or
ranty repair or replacement performed by the contractor,
parts thereof corrected or furnished in replacement pur-
suant to this clause shall also be subject to all the provi-
the Government shall deliver the vehicle to contractor's
local facility or designated dealership for warranty cor-
sions of this clause to the same extent as supplies initially
rective repair or replacement. Receipt for such vehicle
delivered.
by the contractor's local facility or designated dealership
will be deemed proper notification by the Government of
WARRANTY INFORMATION
any obligation of the warranty provided by this provi-
sion. If the Government elects to effect warranty repairs
Report all warranty claims on DA Form
2407. Be sure to fill in all blocks and
or replacement itself, the contractor shall be notified in
distribute in accordance with TM 38-750.
writing of the proposed intent within 30 days after dis-
Section IV. SAFETY RECALLS AND FIELD CAMPAIGNS
sonnel is: Commander, US Army TankAutomotive Ma-
In the event a recall program is required for compliance
teriel Readiness Command, Maintenance Directorate,
with NHTSA regulations, J. I. Case (after determining a
A T T N : DRSTA-MVM (Safety Recalls). Warren,
problem is safety related) will coordinate any program/
Michigan 48090.
campaign with appropriate Government agencies. Point
of contact for using units and support maintenance per-
