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12. REPAIR PROCEDURE. <br /> 12.1. REPAIR PERFORMANCE. Contractor is responsible for all warranty-covered repair work, including <br /> diagnostics of warranty covered parts.To the extent practicable,Participant will allow Contractor <br /> or its designated representative to perform repair work. At its discretion, Participant may <br /> perform such repair work if it determines it needs to do so based on transit service or other <br /> requirements. Contractor shall reimburse Participant for any warranty-covered repair work it <br /> performs. <br /> 12.2. REPAIRS BY THE CONTRACTOR. Participant shall notify Contractor's designated representative within <br /> thirty(30)days if Participant detects a defect within the warranty periods defined in this Master <br /> Contract or the applicable Participant Order. Contractor or its designated representative shall, if <br /> requested, begin repair work on warranty-covered repairs within five (5) calendar days after <br /> receiving notification of a defect from Participant. Participant will make the bus available to <br /> complete repairs timely with the Contractor's repair schedule. <br /> Contractor shall provide at its own expense all spare parts,tools,and space required to complete <br /> repairs.At Participant's option,Contractor may be required to remove the bus from Participant's <br /> property while repairs are made. If the bus is removed from Participant's property, then repair <br /> procedures must be diligently pursued by Contractor's representative. <br /> 12.3. REPAIRS BY PARTICIPANT. If Participant performs the warranty-covered repairs,then it must correct <br /> or repair the defect and any related defects utilizing parts supplied by Contractor specifically for <br /> this repair.At its discretion,Participant may use Contractor-specified parts available from its own <br /> stock if deemed in its best interests. Parts supplied by Contractor may be remanufactured but <br /> must have the same form, fit and function, and warranty. The parts will be shipped prepaid to <br /> Participant from any source selected by Contractor within fourteen (14) days of receipt of the <br /> request for said parts and shall not be subject to a handling charge. <br /> 12.4. DEFECTIVE COMPONENT RETURN. Contractor may request that parts covered by the warranty be <br /> returned to the manufacturing plant. Contractor will pay the freight costs for this action. <br /> 12.5. FAILURE ANALYSIS. Upon specific request of Participant,Contractor will provide a failure analysis of <br /> Fleet Defect or safety-related parts,or major components, removed from buses under the terms <br /> of the warranty that could affect fleet operation.Such reports will be delivered within 60 days of <br /> the receipt of failed parts. <br /> 12.6. REIMBURSEMENT FOR LABOR AND OTHER RELATED COSTS. Contractor shall reimburse Participant for <br /> repair labor.The amount is determined by Participant for a qualified mechanic at a straight time <br /> wage rate per hour,which includes fringe benefits and overhead adjusted for Participant's most <br /> recently published rate in effect at the time the repair work is performed, plus the cost of towing <br /> the bus if such action was necessary and if the bus was in the normal service area. These wage <br /> and fringe benefit rates shall not exceed the rates in effect in Participant's service garage at the <br /> time the defect correction is made. <br /> 12.7. REIMBURSEMENT FOR PARTS. Contractor shall reimburse Participant for defective parts and for parts <br /> that must be replaced to correct the defect. The reimbursement will be at the current price at <br /> the time of repair and include taxes where applicable, plus fifteen (15) percent handling costs. <br /> Handling costs will not be paid if parts are supplied by Contractor and shipped to Participant. <br /> 12.8. REIMBURSEMENT REQUIREMENTS. Contractor shall respond to parts warranty claims with an <br /> accept/reject decision including necessary failure analysis no later than sixty (60) days after <br /> MASTER CONTRACT NO.06719-01 <br /> PAGE 21 <br />