All, thank you for the information. I have looked at the FAR definitions. My customer is agruing the the maintenance is a supply based on definitions of software maintenance found on the GSA website. GSA differenitates as follows:
Software maintenance as a product is used for the purpose of maintaining the operability and usability of the software product by utilizing published fixes to bugs via patches, updates, or upgrades. An example is the publishing of bugs or defect fixes via patches to keep the software current. This allows for Software Maintenance as a Product to be billed at the time of purchase.
Software maintenance as a service is purchased for the purpose of solving user identified problems using technical support outside the scope of software maintenance as a product — for example, when problems arise after implementation of software such as the software's incompatibility with the organization's IT infrastructure.
My problem is that I am not finding any guidance on IT hardware maintenance. For example, if I am buying servers and part of the requirement is installation and warranty. The GSA distinction for software maintenance as a supply seems to apply since it would be considered maintaining the operability and usability. The FAR 37.101 definition of a service (which includes maintenance) is when the "... primary purpose is to perform an identifiable task rather than to furnish an end item of supply". In my case, the primary purpose is the IT hardware buy. But I have found no specific guidance thus far.