Federal Government Can Revoke Acceptance Years Later and Demand Replacement of Work
Even though work has been completed and payment received does not mean the contractor is no longer responsible.
Source: JD Supra Business Advisor, Article written by Susan McGreevy, published August 28, 2015
Many contractors mistakenly think that once the government accepts work and pays for it, that the work is, well, “accepted.” Some also believe that the one-year warranty provided in the Federal Acquisition Regulation (FAR) means that the contractor is in the clear after, well, one year. Those contractors would be wrong.
In JJK Group Inc. v VW International Inc., a federal court in Maryland recently ruled that the government could revoke its prior acceptance years later and require the contractor to replace an entire system because the system contained “latent defects.” MORE….
If the government finds a system defective even after one year, the contractor may have to replace the system. Contact your nearest PTAC
with your questions the Buy Indian Act.
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.