ARWG also seeks to limit warranties on components and to remove liability for incidental and consequential damages.
A supplier under a $10,000 contract arguably could face $50,000,000 in retrofit costs," ARWG pointed out.
The aim of the ARWG is to reduce costs, enhance efficiencies and promote quality management as the federal government expands the use of commercial practices and reaches out more to the private sector to acquire goods and services.
However, ARWG has identified several areas in which the full potential of existing commercial practices has not been recognized and employed, either because of legislative or regulatory restrictions, or failure to use the flexibility provided.
ARWG has focused on several critical steps that should be taken to make federal purchasing more efficient.
ARWG recommends that Congress establish higher monetary thresholds for congressional notifications of defense exports, and create a more predictable and transparent process for notifications of export licenses.