184.108.40.206 Types of Product Performance Agreements
Warranty (RIW) with an MTBF Verification Test (MTBF-VT. Applicable to
fixed price contract as a means to motivate producer to increase equipment
reliability and decrease logistics support costs. Applicable to avionics
equipment LRUs or black boxes that can be tested without entry into the
220.127.116.11 Types of Product
This subsection, and all remaining material, will provide
information on warranties considered for the procurement of DoD systems. where
appropriate, these warranties could be tailored for similar commercial
systems. The following are brief descriptions of a number of warranties
presented in more detail in references  and .
Maintainability Guarantee. Applicable to critical,
potentially high MTTR end items/components on fixed price contracts. The
objective is to reduce the MTTR during maintenance and/or overhaul.
Reliability and Maintainability
Improvement Warranty. Applicable to fixed price contracts, normally for
avionics equipment at the LRU level. Applicable to SRUs if fault capability
isolation at the user level is available. Purpose is to motivate producer to
increase equipment R&M and reduce repair costs. Applies to preventive and
Warranty of Supplies. This
agreement is applicable to fixed price contracts for stable design items or
equipment. It extends the contractor's responsibility for materials,
workmanship, and specification conformance beyond the period of acceptance of
Warranty of Technical Data.
This agreement is applicable to either cost reimbursement or fixed price
contracts. It provides for correction or replacement of deficient data for a
specified time after delivery and inspection.
Repaired/Overhauled Equipment. This warranty is applicable to fixed price
contracts and provides warranty coverage for items which have been overhauled,
repaired, or furnished as replacements by a contractor. The contractor agrees
to warrant that the repaired or replacement parts and/or materials are free
from any further defect in material or workmanship for a specified
When the volume of repair activity for an item being introduced into the DoD
inventory is expected to be too low to justify organic support, the
repair/exchange agreement can provide an alternate approach. The contractor
must establish the capability to exchange complete items or to repair parts
returned to his facility within agreed-upon turnaround times.
Reliability Warranty. The contractor agrees to
maintenance/overhaul intervals for components and/or subsystems. When specific
types of failures occur between overhaul intervals in covered items, the
contractor is responsible for the supply of a specified combination of labor,
material, or replacement items.
Reliability Improvement Warranty (RIW). Applicable to
fixed priced contracts. Normally applied to avionics equipment at the LRU
level, or at the SRU level if fault capability isolation at the user level is
available. Under RIW, the contractor agrees to repair all covered failures for
a specified period at no additional expense to the Government. This warranty
is designed to increase equipment reliability and reduce repair costs.
Mean-Time-Between-Failure Verification Test (MTBF-VT).
The MTBF-VT can be used to achieve improvement in operational reliability. The
MTBF-VT can be applied at the "black-box" or subsystem level or components
from several subsystems can be aggregated to system level commitment. The test
of compliance would normally be scheduled for the first deployed unit.
Deviations between MTBF targets and measured performance form the basis for
rewards or corrective action.
R&MIW with MTBF/VT.
Applicable to fixed price contracts for avionics equipment LRUs, or SRUs if
the fault isolation capability is at an organic level. Provides producer with
a strong incentive to achieve specified R&M in the field.
Component Reliability Warranty. Corrects deficiencies and
improves product performance for selected system components. Designed for use
on components for which certain minimum levels of operational performance are
critical to overall satisfactory operational performance. Oriented toward
“fleet-wide” reliability minimums, specified at the component or black box
level, over a specified time period.
Spare Parts Level Warranty. Applicable to fixed price
contracts for equipment or items which are prime mission essential or safety
of operationally essential, and designed for organic Government maintenance.
Objective is to maintain the original system capability with lowered mean time
between (LRU or SRU) removals (MTBR).
Availability Guarantee. The Availability Guarantee can be
used to reduce downtime for systems or equipments which operate in a
continuous mode or with dormant systems where readiness upon random demand is
a critical requirement. The equipment should provide a positive indication of
operability either through continuous performance checks or, in the case of
dormant systems, through go/no-go checks.
Logistics Support Cost Guarantee (LSCG). The LSCG is used
to control and reduce selected aspects of life cycle cost and to improve
equipment supportability in operational use. The LSCG uses a cost model which
describes the effect that system design, operating, and logistics
characteristics have on potential support costs. The model addresses those
features of the equipment which impact support investment and recurring
operations and support costs. Deviations between target logistics parameters
and measured performance form the basis for rewards or corrective action.
Maximum Parts Cost Guarantee. The Maximum Parts Cost
Guarantee can be applied to equipments when repair costs are critical. The
contract specifies an average repair cost (which can include parts and labor)
for the system or critical portions thereof. “Actual” average repair cost is
then compared with the specified average to determine what remedy or
consideration is applicable.
Utility Functions Guarantee. Utility function agreements
can be applied to consumable items. The DoD establishes a utility function for
the item being procured (e.g., landings per tire or set of brakes or starts
per battery). The contractor specifies a value for this function. A
demonstration is performed to develop an “actual” value of the utility
function. The “actual” and “specified” values are compared to determine what remedy or
consideration is applicable. This type agreement is often incorporated as the
basis of life cycle cost procurement actions for consumable items.
Reliability Improvement Warranty
(RIW) With a Mean-Time-Between-Failure (MTBF) Guarantee. The MTBF
guarantee can be applied to systems where the objective is to achieve
substantial reliability growth. An increasing series of target values is
specified over consecutive time periods of the guarantee. Failure to meet
target values results in contractor corrective action. Exceeding targets could result in incentive awards.
(LRU) Guarantee. A Chronic LRU Guarantee can be applied to LRUs where mean
time between removals (MTBR), mean time between failure (MTBF) or similar
reliability criteria are an important consideration. During the period of the
guarantee, any LRU which experiences an extraordinary number of consecutive
removals is designated a “chronic LRU.” The contractor is required to replace
chronic LRUs and chronic LRUs are not counted in calculating actual MTBR or
Mean-Time-to-Repair (MTTR) and
Mean-Time-Between-Unscheduled-Removals (MTBUR) Guarantees. MTTR and
MTBUR Guarantees can be used on systems and subsystems where downtime or
frequency of maintenance are critical to equipment performance. Measurements
of achievement under operational conditions will be made over a series of
specified intervals. When measured achievements fall outside of acceptable
limits, a specified remedy is required.
Ultimate Life Warranty. The
Ultimate Life Guarantee can be applied to basic elements of a system such as
aircraft structure, engines, and landing gear. A value is established for the
life of the item and a remedy identified if failures occur.
Commercial Service Life
Warranty. A Commercial Service Life Guarantee can be used to extend
limited term warranty coverage to the service life of the item.
Software Design Commitment
Guarantee. This guarantee may be applied prior to a production contract
award since its purpose is to provide contractors with an incentive to develop
software packages with inherently high quality, low maintenance and update
costs. As part of a development contract, quantitative targets for parameters
such as modularization, documentation, testability, and transportability are
established for software and demonstration requirements.
LRU Software Configuration
Control and Support Agreement. This guarantee may be applied to software
packages associated with a system or other specific set of LRUs. The
contractor agrees to be responsible, at no additional cost, for software
changes due to associated changes that are the contractor's responsibility.
The contractor is also responsible to maintain software configuration and
Fault Detection, Isolation, and
Repair Warranty. Applicable to fixed price contracts for operational
systems that are intended for organic Government support. Intent is to reduce
Mean Troubleshooting Time (MTT) for the
guaranteed system/item to a guaranteed level, and maintain that reduced MTT
for a specified period of time. Producer will correct deficiencies in the
FMEA, Optimum Repair Level Analysis (ORLA), TOs, Test System Hardware, or Test
Software when they impact the operational availability of the end
Test and Repair Improvement
Guarantee. This guarantee may be applied to the test equipment and test
procedures that are developed for a system. The contractor guarantees that his
test equipment and procedures, when applied in accordance with applicable
documentation, will demonstrate MTBR (or MTBF) characteristic of systems in
field operation. When comparisons between operational and test results fall
outside specified boundaries, the contractor is responsible to make changes to
the test equipment or procedures.
Method of Test Guarantee. This guarantee is intended to
ensure that the unique test equipment and test methods used for specified LRUs
will accurately verify the performance of the LRUs during an agreed-upon
period of time. The contractor, at no additional cost, will replace, modify,
or repair test equipment and methods when deficiencies occur. A demonstration
will be conducted to determine compliance with this guarantee.
Quality of Training Warranty. Applicable to fixed price
contracts for Items intended for organic Government maintenance. Intent is to
ensure the level of skill and knowledge available in the repair shops at all
levels of maintenance. Contractor corrects voids in system training brought
about by configuration changes and