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In accordance with Clause 2-8: Warranty, if the supplier fails or refuses to correct or replace defective or nonconforming supplies, the CO may correct or replace them with similar supplies and charge to the supplier any cost to the Postal Service. In addition, the CO may dispose of the nonconforming supplies, with reimbursement from the supplier. Coordination with the supplier must be documented prior to taking these actions.
Depending on the terms and conditions of the contract or the language of the delivery order, the supplier may also be financially responsible for compensating the Postal Service for lost time if defective/nonconforming supplies adversely affected the project or caused delays. In such cases, the purchase/SCM team must ensure that any claims, unliquidated damages, or other complaints are documented.
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