FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.2
FAR 31.205-39 Service and warranty costs.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains that service and warranty costs, such as installation, training, fixing defects, replacing parts, and refunds for poor performance, are generally allowable if they don't conflict with the contract terms. Contractors should be careful not to count these costs twice, both as an estimated product cost and as a risk allowance.
Applies to: Government contractors incurring service and warranty costs
What it requires
- Avoid duplicating service and warranty costs as both estimated product cost and risk
Key terms: service and warranty costs · allowable · contractual obligation · duplication · estimated product cost
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Service and warranty costs include those arising from fulfillment of any contractual obligation of a contractor to provide services such as installation, training, correcting defects in the products, replacing defective parts, and making refunds in the case of inadequate performance. When not inconsistent with the terms of the contract, service and warranty costs are allowable. However, care should be exercised to avoid duplication of the allowance as an element of both estimated product cost and risk.
← 31.205-38 Selling costs. · 31.205-40 Special tooling and special test equipment costs. →
Rule changes for FAR Part 31
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.