Guidelines

What is the FAR clause for changes?

What is the FAR clause for changes?

The Federal Acquisition Regulation (“FAR”) defines “change order” to mean “a written order, signed by the contracting officer, directing the contractor to make a change that the Changes clause authorizes the contracting officer to order without the contractor’s consent.” FAR 2.101.

Is the contracting officer required to make an equitable adjustment to the contract?

Contract modifications that result from either unilateral or bilateral changes are eligible for equitable adjustments. FAR 43.103. Contracting officers are required to negotiate equitable adjustments resulting from change orders in the shortest practicable time.

What type of modification involves the use of administrative changes and change orders that do not directly impact the contractual relationship of the parties?

Unilateral modifications are signed only by a contracting officer and are generally used to make administrative changes, issue change orders, make changes authorized by clauses other than the Changes clause, and issue termination notices.

What are non-excusable delays?

Non-excusable delays are events that are within the contractor’s control or that are foreseeable. Inexcusable delays (Non-Excusable delay) are caused solely by the contractor or its suppliers.

When can you request an equitable adjustment?

While there is no time limit for a REA, a certified claim must be submitted to the CO within six years of when the contractor knew or should have known about his grounds for adjustment. Otherwise, the certified claim is untimely and outside the jurisdiction of the Boards and COFC.

What is an equitable price adjustment?

An equitable price adjustment is what ensures the contractor is completely compensated for changes to a contracted agreement. This could be in materials, funds or other items. This ensures he or she is left after the contract has ended in the same position financially as if no change occurred.

Is required for changes to or the addition of contract financing after award?

Adequate new consideration is required for changes to, or the addition of, contract financing after award. (b) Amount of new consideration. The contractor may provide new consideration by monetary or nonmonetary means, provided the value is adequate.

When changes are made to a contract the government must determine if the change is within scope?

When changes are made to a contract, the government must determine if the change is within scope. In plain English that means the work falls under the basic intent of the original contract. The COR should work with the Contracting Officer if the COR identifies a need to change the current contract.

When do you use equitable adjustment clause in far?

As prescribed in 243.205-71, use the clause at 252.243-7002, Requests for Equitable Adjustment, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that are estimated to exceed the simplified acquisition threshold.

When to submit a proposal for equitable adjustment to a contract?

If the Contractor deems an oral or written order to be a change to the contract, it shall promptly submit to the Contracting Officer a proposal for equitable adjustment attributable to such deemed change. The proposal shall also conform to the requirements set forth herein.

What is an equitable adjustment clause in a construction contract?

(d) If any change under this clause causes an increase or decrease in the Contractor’s cost of, or the time required for, the performance of any part of the work under this contract, whether or not changed by any such order, the Contracting Officer shall make an equitable adjustment and modify the contract in writing.

What are the conditions for equitable adjustment?

(1) The nature and complexity of the change or other condition giving rise to entitlement to an equitable adjustment warrants estimating, scheduling, or other effort not reasonably foreseeable at the time of contract award; (2) Proposed costs are not included in a firm’s time-related costs or overhead rate; and