Common use of ECONOMIC REPAIRABILITY Clause in Contracts

ECONOMIC REPAIRABILITY. Limitation on Articles to be Serviced: The Seller shall not begin servicing of any article(s) where the total costs of servicing (labor and parts) is reasonably expected to exceed eighty percent (80%) of the Seller’s most recent selling price of that item based on a spares replacement of a new article in a configuration similar to the configuration of the article to be serviced. Furthermore, whenever it becomes apparent, prior to the submission of the quotation for servicing, that an article being serviced will need servicing, the cost of which will exceed the foregoing figure, the Seller will discontinue the servicing of such article. In either of the foregoing events, the Seller shall promptly advise Northrop Grumman of the estimated cost of servicing such an article. The Seller will subsequently be advised by Northrop Grumman if the article is to be serviced notwithstanding that the price for such servicing will exceed the figure above, or if the determination is that servicing is to be discontinued. If the servicing is to be discontinued, the Order will be amended to compensate the Seller for services performed and parts furnished.

ECONOMIC REPAIRABILITY. Limitation on Articles to be Serviced: The Seller shall not begin servicing of any article(s) where the total costs of servicing (labor and parts) is reasonably expected to exceed eighty percent (80%) of the item Seller’s most recent selling price of that item based on a spares replacement of a new article in a configuration similar to the configuration of the article to be serviced. Furthermore, whenever it becomes apparent, prior to the submission of the quotation for servicing, that an article being serviced will need servicing, the cost of which will exceed the foregoing figure, the Seller will discontinue the servicing of such article. In either of the foregoing events, the Seller shall promptly advise Northrop Grumman of the estimated cost of servicing such an article. The Seller will subsequently be advised by Northrop Grumman if the article is to be serviced notwithstanding that the price for such servicing will exceed the figure above, or if the determination is that servicing is to be discontinued. If the servicing is to be discontinued, the Order will be amended to compensate the Seller for services performed and parts furnished.

ECONOMIC REPAIRABILITY. Limitation on Articles to be Serviced: The Seller shall not begin servicing of any article(s) where the total costs of servicing (labor and parts) is reasonably expected to exceed eighty percent (80%) of the item Seller’s most recent selling price of that item based on a spares replacement of a new article in a configuration similar to the configuration of the article to be serviced. Furthermore, whenever it becomes apparent, prior to the submission of the quotation for servicing, that an article being serviced will need servicing, the cost of which will exceed the foregoing figure, the Seller will discontinue the servicing of such article. In either of the foregoing events, the Seller shall promptly advise Northrop Grumman of the estimated cost of servicing such an article. The Seller will subsequently be advised by Northrop Grumman Xxxxxxx if the article is to be serviced notwithstanding that the price for such servicing will exceed the figure above, or if the determination is that servicing is to be discontinued. If the servicing is to be discontinued, the Order will be amended to compensate the Seller for services performed and parts furnished.