Warranties are required by law to be obtained on all weapon systems purchased by the Department of Defense. As a result, the three services within the DoD must face a variety of issues associated with weapon system warranties. This thesis examines the issues associated with the acquisition, enforcement, and subsequent evaluation of warranties. It then examines how each of the three services treat these issues in their supplement to the Federal Acquisition Regulation and in their primary warranty regulation. Prior to examining the foregoing issues, the thesis begins by first reviewing the background of warranties and discussing some theoretical considerations. The issues themselves are then presented followed by their treatment by the DoD. After the examination of the issues and their treatment by the DoD, recommendations are made for suggested improvements to the services' regulations. This thesis is useful in that it identifies several areas that should be addressed by the military departments in their warranty guidance. It also advances recommendations for improvements to the regulations. Theses. (FR).

As part of the 1985 Department of Defense (DOD) Authorization Act Congress enacted legislation requiring DOD to obtain cost-effective warranties on weapon systems. The warranties were expected to improve weapon system reliability by providing a mechanism to hold contractors liable for poor performance. Past reviews by GAO' and others concluded that DOD was not properly managing its warranty program. This report assesses whether the warranties being obtained for weapon systems provide the expected benefits to the government and whether warranties, as required by 10 U.S.C. 2403, are compatible with weapon system acquisitions. As part of the 1985 Department of Defense (DOD) Authorization Act Congress enacted legislation requiring DOD to obtain cost-effective warranties on weapon systems. The warranties were expected to improve weapon system reliability by providing a mechanism to hold contractors liable for poor performance. Past reviews by GAO' and others concluded that DOD was not properly managing its warranty program. This report assesses whether the warranties being obtained for weapon systems provide the expected benefits to the government and whether warranties, as required by 10 U.S.C. 2403, are compatible with weapon system acquisitions.

This thesis describes weapon system warranties and examines the corporate Air Force approach to integrating warranties into the acquisition process. The paper is broadly focused on warranties within the framework of four issues. The issues are: (1) Congressional intent; (2) the warranty as part of the acquisition process; (3) the warranty's relationship to reliability and maintainability; and (4) administration of warranties. The end of the Reagan era brings with it a period of fiscal constraint, which is getting the attention of everyone in the Air Force who manages a budget funded with federal dollars. The federal budget's deficit growth has resulted in budget cuts that are being felt in every area, especially the world of weapon system acquisition. This is driving the Air Force acquisition and logistics communities to seek more combat effectiveness for the weapon system dollar. (SDW).