Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can a unit purchase extended warranties or damage protection plans? For example, if I buy a printer for $400 and I can get a three-year extended warranty for an additional $99, is it legal to do so?

April 26, 2017buy damage extended plans printer purchase warranties

0

Posted

Can a unit purchase extended warranties or damage protection plans? For example, if I buy a printer for $400 and I can get a three-year extended warranty for an additional $99, is it legal to do so?

1 Answer

0

Posted

A. Yes, it is legal. FAR 12.404(b) encourages the use of extended warranties: “To the maximum extent practicable, solicitations for commercial items shall require offerors to offer the Government at least the same warranty terms, including offers of extended warranties, offered to the general public in customary commercial practice.” If the item can be purchases with appropriated funds (i.e. GPC card), then so can the extended warranty. This reference does include the caveat that the warranty be “cost effective”.