[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-39]

[Page 609]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
          Subpart 31.2--Contracts With Commercial Organizations
 
Sec. 31.205-39  Service and warranty costs.

    Service and warranty costs include those arising from fulfillment of 
any contractual obligation of a contractor to provide services such as 
installation, training, correcting defects in the products, replacing 
defective parts, and making refunds in the case of inadequate 
performance. When not inconsistent with the terms of the contract, 
service and warranty costs are allowable. However, care should be 
exercised to avoid duplication of the allowance as an element of both 
estimated product cost and risk.

[48 FR 42301, Sept. 19, 1983, as amended at 66 FR 2131, Jan. 10, 2001]