Book Description

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.