Fleet Defect definition
Examples of Fleet Defect in a sentence
A Defect resulting in a safety hazard shall immediately upon discovery be deemed to be a Fleet Defect and the Contractor, at its sole cost, shall furnish, install and replace all defective items.
The warranty period does not restart until the Fleet Defect is corrected.
A Fleet Defect shall apply only to the base warranty period in sections entitled “Complete Bus,” “Propulsion System” and “Major Subsystems.” When a Fleet Defect is declared, the remaining warranty on that item/component stops.
If, at any time prior to the expiration of the Warranty Period, any single failure mode of an item develops and the rate of failure reaches 20% of the total number of such items during any 12 consecutive month period, it will be deemed a Fleet Defect.
After correcting the Fleet Defect, the Contractor shall promptly undertake and complete, at the Contractor’s sole cost, a work program reasonably designed to prevent the occurrence of the same Fleet Defect in all other Locomotive purchased under this Contract including those for which the individual Locomotive or Unit warranty has already expired.
A Fleet Defect shall apply only to the base warranty period in sections entitled “Complete Scooty,” “Propulsion System” and “Subsystems.” When a Fleet Defect is declared, the remaining warranty on that item/component stops.
The “Rail Car Fleet” consists of the number of Rail Cars accepted by the Authority at the time of any notice to the Contractor of a Fleet Defect, but not less than 100% of the Base Order.
The Fleet Defect provisions shall not apply to Fleet Defects caused by Authority’s noncompliance with the Contractor’s minimum recommended normal preventative maintenance practices and procedures as contained in then current maintenance manuals supplied by the Contractor to Authority; provided, however, the Contractor, in any denial of Fleet Defect status must demonstrate by adequate proof that Authority did not comply, and if adequate proof is not provided the Fleet Defect provisions shall apply.
If an item is declared to be a Fleet Defect, then the warranty stops with the declaration of the Fleet Defect.
If a single failure (a failure of a single item on one Locomotive) represents a higher percentage than 20 percent, that single failure shall not constitute a Fleet Defect and shall be addressed as an isolated problem.