WARRANTY & SOURCE OF REPAIRINSTRUCTION

PREPARED FOR DEFENSE PRICING & CONTRACTING (DPC)BY NAVAL SEA LOGISTICS CENTER PORTSMOUTH

WEBSITE: HTTPS://WWW.PDREP.CSD.DISA.MIL/PDREP_FILES/TRAINING/OTHERTRAIN.HTM

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AGENDA

I. Regulation & Intent

II. Who does What

III. Your Part – Acquisition Serialized Itemsi. Request For Information/Request For Proposalii. Product Data Reporting & Evaluation Program (PDREP)iii. Warranty Tracking Information (WTI) & Source Of

Repair Instruction (SORI) Forms iv. Electronic Document Access (EDA)

IV. Closing the Loop

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OBJECTIVE

Equip and EncourageYOU

to COMPLETE & UPLOAD THE FORMS

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REGULATION

• FAR Subpart 46.703, Criteria for use of warranties.• DFARS 246.704, Authority for use of warranties.*• FAR Subpart 46.710, Contract Clauses.• DFARS 252.246-7005,

Notice of Warranty Tracking of Serialized Items.• DFARS 252.246-7006,

Warranty Tracking of Serialized Items.• DFARS 246.710 – 70 /PGI 246.710 – 70,

Warranty Attachments.• DLMS 4000.25, Volume 2, Chapter 24,

Product Quality Deficiency Report Program.*Included as unnecessary in Report of the Advisory Panel on Streamlining and Codifying Acquisition Regulations Vol 3, January 2019

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INTENT

In a July 2004 Air Force audit $46M in purchased extended warranties were identified without the ability to track for use and $2.6M in reparable assets were sitting in a Defense Logistics Agency warehouse with questionable warranty status.Section 1.3.1 Historical Perspective, AFMC Warranty Guide, February 2006. pp. 1-2. https://segoldmine.ppi-int.com/node/67509

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REGULATION & INTENT

Government Warranty Objectives:

– Improve Warfighter capability

– Improve readiness

– Reduce risk

– Reduce cost

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REGULATION & INTENT

Acquire best Warfighter System• Establish Essential Performance Requirements (EPRs)• Communicate clear expectations for contractor• Assess past performance information (product and contractor)

Improve Readiness• Ensure EPRs are clearly understood by all parties• Systems established (maintenance, depot, PQDR)

Reduce Risk• Review past performance information (CPARS, SPRS & FAPIIS)• Ensure enforceability (PQDR process)

Reduce Cost• Shared EPR objectives• Recoup costs for deficiencies

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REGULATION & INTENT – ACQUISITION LIFE CYCLE

• Warranty• Best Terms?• Record Receipt

• Warranty• Accessibility• Traceability

• Warranty• Benefit > Cost?• Plan for use

• Warranty• Cost effective?• Changes?

Feedback Design

AcquireUse

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WHO DOES WHAT (REFERENCE DOD WARRANTY GUIDE 2009)

Roles & Responsibilities

Action

Program Managers 1. Determine the value of warranties and whether appropriate & cost effective

2. Overall responsibility for warranty planning and identify warranty team3. Specify government required warranty, type, terms and duration 4. Reassess warranty strategies throughout acquisition cycle

Warranty Manager 1. Manage, track and administer a specific contractual warranty 2. Integrate performance and the operational & support requirements for

both using & acquisition commands during contract development and planning.

Warranty Team 1. Prepare the warranty plan2. Coordinates warranty plan with all parties (acquisition, sustainment,

using commands, contracting administration office and contractor)

Using Command/Agencies

1. Participate in warranty planning efforts2. Identify responsible party and concur methodology for administering the

warranty & tracking is useable, enforceable and cost effective

Contracting Officer Representatives

1. Participate in warranty planning efforts2. Adjudicate and negotiate warranty issues 3. Assist PM with warranty tracking

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WHO DOES WHAT (REFERENCE DOD WARRANTY GUIDE 2009)

Roles & Responsibilities

Action

Contracting Officers/Contract Specialist

1. Communicate the intent and specifics of the planned warranty2. Document the decision to purchase a warranty 3. Pursue warranty coverage through RFP and RFI 4. Gather data in solicitation about commercial warranties 5. Obtain assurance that the capability to track and enforce a warranty exist

prior to purchase6. Ensure required information is uploaded to the applicable system

Industry/Contractors 1. Provide the warranty 2. Submit data in solicitations about commercial warranties3. Complete required information in the WTI and SORI forms4. Enter data in WAWF or direct to Warranty database

PDREP – Warranty Database

1. Storage and collection2. User retrieval

PIEE Users (WAWF, EDA, SPM)

1. Complete data in WTI and SORI

DoD 1. Ensure capturing and sharing of warranty data occurs

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YOUR PART – RFI/RFP PREPARATION

Document the decision to purchase a warranty

• PM positive Cost Benefit Analysis

• Warranty Plan as outlined by Warranty Team

• Chief of the Contracting Office sign off (DFARS 246.704) except:1. Commercial items (See FAR 46.709)2. Technical data without extended liability (See FAR 246.708)3. Supplies & services in fixed-price type contracts containing quality

assurance provision that reference higher-level contract quality requirements (See 246.202.4)

4. Supplies and services in construction contracts when using the warranties that are contained in Federal, military or construction guide specifications.

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YOUR PART – RFI/RFP PUBLISH

Pursue warranty coverage through RFI/RFP Section H

• Communicate Warranty Intent & Specifics: – (See DoD Warranty Guide V 1.0, Sect. 2.0 Solicitation Clause Development)

• Select applicable DFARS clause: – 252.246-7005, Notice of Warranty Tracking of Serialized Items

(contractor provides warranty as a benefit to the government)– 252.246-7006, Warranty Tracking of Serialized Items

(government specifies warranty terms to contractor)

• Prepare and insert WTI & SORI attachments:

[note in Contract Data Requirements List (CDRL)]

Gather data in solicitation about commercial warranties

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YOUR PART – RFI/RFP AWARD

Ensure complete required warranty information for warranted items• See DoD Warranty Guide V 1.0, Sect. 2.4 Proposal Evaluation

Ensure WTI & SORI attachments are completed and uploaded to EDA• Machine-readable PDF, not image only PDF

Confirm User & Maintenance agency PQDR & warranty data link• Probability highest when interactive forms uploaded.

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YOUR PART - PDREP

Product Data Reporting and Evaluation Program –Automated Information System (PDREP-AIS)This Department of Navy (DON) program enables the

reporting, collection and use of supplier performance informationidentified in the Code of Federal Regulations (CFR), FederalAcquisition Regulation (FAR), Defense Federal AcquisitionRegulation Supplement (DFARS), Department of Defense and DONregulations. DoDI 5000.79 enables services/agencies withoutexisting information systems to use for reporting.

Both DFARS 252.246-7005 and 252.246-7006 state “For additionalinformation on warranty attachments, see the “Warranty andSource of Repair” training and “Warranty and Source of RepairTracking User Guide” accessible on the … (PDREP) website athttps://www.pdrep.csd.disa.mil/pdrep_files/other/wsr.htm.

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YOUR PART - PDREP

How to find from the Home Screen, https://www.pdrep.csd.disa.mil/default.htm

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YOUR PART - PDREP

These 3 steps will take you to the site referenced in DFARS 252.246-7005 & -7006, https://www.pdrep.csd.disa.mil/pdrep_files/other/wsr.htm

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YOUR PART - PDREP

The Interactive PDF attachments referenced in DFARS 246.710 – 70 /PGI 246.710 – 70

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YOUR PART – PDREP SPREADSHEET ALTERNATIVE

As an alternative, you may download the WTI & SORI in spreadsheet format to attach to the RFI/RFP. Once completed, return to the site to convert to the interactive PDF forms to allow uploading to EDA.

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YOUR PART – PDREP SPREADSHEET ALTERNATIVE

After confirming your PKI Certificate this consent page opens separately.

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YOUR PART – PDREP SPREADSHEET CONVERSION

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YOUR PART – PDREP SPREADSHEET CONVERSION

While you wait…

Upload successful. Next, download the machine-readable PDF.

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YOUR PART – PDREP SPREADSHEET CONVERSION

Select “Allow once” or “Options…” to Allow always for site.PDREP will assign a file name.

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YOUR PART – PDREP SPREADSHEET CONVERSION

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YOUR PART – PDREP SPREADSHEET CONVERSION COMPLETED

Ignore the purple header instructions to Submit Form.Save PDF to your directory for upload into EDA.

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YOUR PART – WTI & SORI FORM COMPLETION, PRE-AWARD

DFARS 252.246.7005 Contractor provides warranty as a benefit to the government.

WTI & SORI Attachments – CO completes:

Attachment #Contract #

– Contractor completes all applicable fields except: Warranty Item UIIAgency Serial Number

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YOUR PART – WTI & SORI FORM COMPLETION, PRE-AWARD

DFARS 252.246-7006Government specifies warranty terms to contractor.

WTI & SORI Attachments – CO completes:

Attachment #Contract # (or Non-DoD #)CLIN/SLIN or ELINItem Type NIINID# (USMC Only)TAMCN (USMC Only)

– Contractor completes remaining applicable fields

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WTI & SORI FORM COMPLETION

Attachment Number is a mandatory field. It is numeric IAW PGI 204.7105(b)(5).You may enter either a Contract Number or Non-DoD Number.

There will be a separate attachment for every CLIN, SLIN or ELIN covered by warranty.

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WARRANTY TRACKING INFORMATION (WTI) FORM

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WTI FORM COMPLETION

UII- unique item identifier for each warranted item, see DFARS 252.211.7003.Starting Event- the event or action that initiates the warranty.Usage- the quantity and an associated unit of measure that specifies the amount of a characteristic subject to the contractor’s obligation to provide for remedy or corrective action.Duration- the warranty period, may be stated as a period of time, amount of usage or the occurrence of a specified event, after formal acceptance of delivery, for the Government to assert a contractual right for the correction of defects.

Fixed Expiration Date-the date the warranty expires and the Contractor’s obligation to provide for a remedy or corrective action ends.

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WTI FORM COMPLETION

Warranty Administrator – the organization specified by the guarantor for managing the warranty.Warranty Guarantor – the enterprise that provides the warranty under the terms & conditions of a contract.

Item Type – a coded representation of the description of the item being warrantedC- component procured separately from end itemS- subassembly procured separate from end item or subassemblyE- embedded in component, subassembly or end item parentP- parent end item

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WTI FORM COMPLETION

NIIN- National Item Identification Number. If entered, exactly 9 numeric characters are required.Id Number- USMC specific. If entered, exactly 6 alphanumeric characters are required.OEM Part Number- Assigned by the Original Equipment Manufacturer, up to 40 alphanumeric characters are allowed.Agency Serial Number- Assigned by the agency, up to 30 alphanumeric characters are allowed.TAMCN- USMC specific. Table of Authorized Material Control Number. Every item of equipment listed in Table of Authorized Material (TAM) has a specific alphanumeric number used to identify specific items within the Marine Corps inventory. If entered, exactly 8 alphanumeric characters are required.

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WTI FORM COMPLETION – FORM SHORTCUTS

Copy –• select the data set(row)

you wish to copy• enter the number of rows

(may correspond to the quantity purchased for that CLIN)

• click Copy• rows will be added to the

bottom of the form.

Add – click to add empty data fields & their headers to the bottom of the form.

Remove – click to delete the associated data set.

*Contracting Officer is responsible for ensuring form is complete.

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WARRANTY SOURCE OF REPAIR INSTRUCTIONS (SORI)

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SORI FORM COMPLETION

Form shortcuts function the same as the WTI form. X = Remove

Warranty Repair Source- the organization specified by a warranty guarantor for receiving and managing warranty items that are returned by a customer.

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SORI FORM COMPLETION

Instructions- Additional instructions such as a website where prepaid shipping labels may be obtained.

*Contracting Officer is responsible for ensuring form is complete.

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YOUR PART - EDA

Access EDA through PIEE,

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YOUR PART - EDA

Accessing PIEE URL https://piee.eb.mil

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YOUR PART - EDA

Accessing EDA – Your landing page

NOTE: Landing pages will reflect only the applications the User is authorized to access.

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YOUR PART – EDA WARRANTY FORM UPLOAD

Steps for Manual Upload after logging into EDANote: You must be an authorized user with “Upload Attachment/Admin Docs” role

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YOUR PART – EDA WARRANTY FORM UPLOAD

Enter the base Contract Number and select the ‘Search’ button. (bottom of page)

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YOUR PART – EDA WARRANTY FORM UPLOAD

Search returns contract. Scroll to the right to locate Attachments.

Select link. ‘View’ or ‘Add/Lookup’

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YOUR PART – EDA WARRANTY FORM UPLOAD

Select ‘+Add Attachment’ button.

Select ‘+ Select an Attachment’ button.

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YOUR PART – EDA WARRANTY FORM UPLOAD

Upload the WTI or SORI machine-readable PDF.

Complete form, select WTI or SORI Attachment Type from drop down menu.

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YOUR PART – EDA WARRANTY FORM UPLOAD

Once completed, select the ‘Save’ button.

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YOUR PART – EDA WARRANTY FORM UPLOAD

Attachment upload completed!

Note: The user that uploads a Contract Attachment document can modify and/or delete but all others will have view only access.

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CLOSING THE LOOP

Data captured in EDA flows to PDREP.

Linked to the PQDR application to identify warranty status.

Available for search and reporting for PDREP account holders.

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CLOSING THE LOOP

It’s not just about procuring the Warranty. The Forms, properly completed and loaded make it visible.

• Warranty• Warranty

• Warranty• Warranty

Feedback Design

AcquireUse

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CLOSING THE LOOP – IT MATTERS

“…To some degree, if you spend too much time worryingabout new construction but you don’t worry aboutmaintenance, then you’re not maximizing that investment. Ifall you are doing is worrying about maintenance and nottracking the costs and trying to drive that cost down, youwon’t have money to modernize and build new things.(James Geurts, ASN (RD&A))”

Burgess, Richard. “In and Out on Time: Navy Tackles Maintenance Backlog with New Initiatives in Contracting and at Shipyards”, SEAPOWER 30 Oct. 2019 < https://seapowermagazine.org/in-and-out-on-time-navy-tackles-maintenance-backlog-with-new-initiatives-in-contracting-and-at-shipyards/

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CLOSING THE LOOP – EQUIPPED AND ENCOURAGED

• Warranty available/requested for Serialized items

• Applicable clause: 252.246-7005 or 252.246-7006

• WTI & SORI forms

• DD 1423, CDRL

• Negotiable asset

• Machine-readable forms returned & complete

• Uploaded to EDA (soon also SPM)

• Useable by component/agency (PQDR/PDREP)

• Tracking throughout Life Cycle

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CLOSING THE LOOP – YOUR INPUT

THANK YOU

Suggestions, comments or questions?

Email WEBPTSMH.fct@navy.mil

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APPENDIX A – WARRANTY REGULATIONS

AUTHORITY• FAR Subpart 46.703 Criteria for use of warranties.

– https://www.acquisition.gov/content/part-46-quality-assurance#id1617MD0N0PI *website for all FAR references

• DFARS 246.704 Authority for use of warranties.– https://www.acquisition.gov/dfars/part-246-quality-assurance#246.704

• The Federal Acquisition Streamlining Act of 1994, Title VIII:Commercial Items – Subtitle A: Definitions and Regulations (Sec. 8002)

HOW TO INCORPORATE• FAR Subpart 46.709 Warranties of commercial items.• FAR Subpart 12.3 Solicitation Provisions and Contract Clauses for

the Acquisition of Commercial Items.– Clause 52.212-1, Instructions to Offerors - Commercial Items.– Clause 52.212-4, Contract Terms and Conditions – Commercial Items.

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APPENDIX A – WARRANTY REGULATIONS

• FAR Subpart 46.710 Contract clauses.– Clause 52.246-17, Warranty of Supplies of a Noncomplex Nature.– Clause 52.246-18, Warranty of Supplies of a Complex Nature.– Clause 52.246.19, Warranty of Systems and Equipment under

Performance Specifications or Design Criteria.– Clause 52.246-20, Warranty of Services.– Clause 52.246-21, Warranty of Construction.

• DFARS Subpart 246.710 Contract clauses.– Clause 252.211-7003, Item Unique Identification and Valuation.– Clause 252.246-7001, Warranty of Data.– Clause 252.246-7002, Warranty of Construction (Germany).– Clause 252.246-7005, Notice of Warranty Tracking of Serialized Items.– Clause 252.246-7006, Warranty Tracking of Serialized Items.

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APPENDIX A – WARRANTY REGULATIONS

• DFARS 246.710-70, Warranty attachments.• PGI 246.710-70, Warranty attachments.

– https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/PGI246_7.htm

Jul 2020 V3