Overview
FAR 46.704 establishes that the inclusion of a warranty in a federal acquisition is not a unilateral decision by a Contracting Officer but must be authorized through specific agency-level protocols.
Key Rules
- Mandatory Approval: The use of a warranty "shall be approved," indicating that a formal authorization step is required before a warranty can be included in a contract.
- Agency Governance: Rather than providing a centralized federal standard for approval, the FAR delegates the specific methods and authority levels for these approvals to individual executive agencies.
Practical Implications
- Contracting Officers must consult their specific agency supplements (e.g., DFARS for Defense or GSAM for GSA) to identify the specific official authorized to approve warranty terms.
- This requirement ensures that the government evaluates the cost-benefit ratio of a warranty—ensuring the protection is worth the additional premium—before it is legally binding.