An Analysis of the Potential Conflict Between the Standard Inspection Clause and the Supply Warranty Clause in DOD Procurements.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OHIO SCHOOL OF SYSTEMS AND LOGISTICS
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Explored in the report are warranty usage in military procurements, quality assurance provisions, and the court decisions. The conclusions are 1 the supply warranty may no longer afford the DoD protection against non-latent defects and 2 the courts definition of latent defects has become so broad as to obviate the need to protect against non-latent defects. The recommendation is to assess the value of warranties by 1 conducting a cost benefit study of current quality assurance requirements 2 conducting an analysis of risk delta associated with warranties by commodity group 3 developing a warranty cost algorithm and 4 developing an algorithm to determine warranty contribution beyond that of quality assurance provisions. Modified author abstract
- Manufacturing and Industrial Engineering and Control of Production Systems