Both extended warranty and maintenance contracts are allowable under the SCMS program, subject to some restrictions. As extended warranties and maintenance agreements are different types of agreements, they are subject to different restrictions.
Warranty agreements are guarantees that come with the sale of a product and are usually for a period of one year after installation but can be procured at the time of purchase for multiple years at a favorable rate, if desired. In general, warranties cover spare parts and labor. PFSCM is not the title holder of the warranty as warranties are tied to the commodity purchased, not the purchaser.
If something is wrong with the product in the future, it is up to the owner of the goods to invoke any warranty repair, not the SCMS program. Maintenance contracts can be procured for coverage beyond the warranty period for instruments purchased by SCMS (on a case-by-case basis for non-SCMS procured instruments with prior USAID approval).
As maintenance contracts are service agreements, they can only be valid in the fiscal year in which they are purchased. However, there can be option periods for future fiscal years, subject to future payment. All maintenance agreements are invalid past the point when the current SCMS task order (contract) comes to an end on September 26, 2015.
Maintenance contracts should start at the date when the warranty ends and should cover spare parts and labor, preventive maintenance and repair of instruments.
Maintenance templates can be custom-tailored based on the type of product and the country needs. It is suggested that the contract should include at least one preventive visit and one repair per year (any necessary repair should be covered by the maintenance contract), with the option to pool across instruments and facilities. Preventive maintenance visits should be pre-scheduled, documented and set per site.
Like warranty agreements, maintenance agreements are tied to the product, not the purchaser, and thus it is the owner of the equipment's responsibility to enforce the maintenance agreement. SCMS has developed a transferability clause in the maintenance contract template that will allow the contract to be transferred from SCMS to the client with the written agreement of the service provider.
Note: Maintenance contracts and agreements can only be valid for the fiscal year in which they were paid. Maintenance contracts (services) are subject to existing SCMS procurement processes.