Service and warranty costs.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Service and warranty costs. 31.205-39 Section 31.205-39 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION GENERAL CONTRACTING REQUIREMENTS CONTRACT COST PRINCIPLES AND PROCEDURES Contracts With Commercial Organizations 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]