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2024 Webinar Series
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2024: The FAR - Federal Acquisition Regulations, Part 43
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2024: The FAR - Federal Acquisition Regulations, Part 43
2024: The FAR - Federal Acquisition Regulations, Part 43
2024: The FAR - Federal Acquisition Regulations, Part 43
2024 Webinar Series
THE FAR
THE FAR – PART 43
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2024 Webinar Series - THE FAR
FAR PART 43
Contract Modifications
Link:
https://acquisition.gov/content/part-43-contract-modifications
June 21, 2024
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series
THE FAR
FAR PART #43:
Contract Modifications
SPEAKER: Tamara McNulty
FIRM: Potomac Law Group
EMAIL: tmcnulty@potomaclaw.com
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series - THE FAR
FAR Part 43 Contract Modifications
The Basics:
• Contract Modifications
• Unilateral (require only Contracting Officer signature)
• Bilateral (require Contracting Officer and Contractor
signatures)
• Change Orders (unilateral, only “in scope” changes)
• Contractor Notifications & Forms
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2024 Webinar Series - THE FAR
FAR Part 43 Contract Modifications
43.000 Scope of part
43.1 General
43.101 Definitions
43.102 Policy
43.103 Types of contract modifications
43.104 Notification of contract changes
43.105 Availability of funds
43.106 (Reserved)
43.107 Contract clause
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2024 Webinar Series - THE FAR
43.2 Change Orders
43.201General
43.202Authority to issue change orders
43.203Change order accounting procedures
43.204Administration
43.205Contract clauses
43.3 Forms
43.301Use of Forms
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2024 Webinar Series - THE FAR
Subpart 43.000 Scope of part:
• In general, Part 43 applies to all federal Government contracts,
except for contract modifications for “extraordinary relief” under
FAR Subpart 50.1.
• Also, task or delivery orders under an IDIQ contract are not
considered contract modifications or changes.
• Because IDIQ Task Orders and Delivery Orders under IDIQ contracts
are considered “Contracts” in their own right, Government can
make modifications or changes to Task Orders or Delivery Orders.
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2024 Webinar Series - THE FAR
Subpart 43.101 Definitions:
“Administrative change” is a unilateral change, in writing, “that does not
affect the substantive rights of the parties.”
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2024 Webinar Series - THE FAR
Subpart 43.101 Definitions:
“Effective date” depends on the circumstances:
• For an amendment to a solicitation, change order, or administrative change, the
issue date
• For a supplemental agreement, the date agreed upon by the parties
• For a modification confirming a notice of termination for convenience, the same
as the effective date of the initial notice
• For a modification converting a termination for default to a termination for
convenience, the effective date of the termination for default
• For a modification confirming the Contracting Officer’s previous determination of
the amount due in settlement of a termination for convenience, the same as the
date of the previous letter determination
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2024 Webinar Series - THE FAR
Subpart 43.102 Policy:
• Only Contracting Officers “acting within the scope of their authority” can execute
contract modifications on behalf of the Government
• Other Government personnel may not:
• Execute contract modifications
• “Act in such a manner” as to make a contractor believe that he or she has the
authority to bind the Government
• “Direct or encourage” a contractor to perform work that properly should be
directed through a contract modification
• Contract modifications should be priced before execution, if no adverse affect on the
Government; or if a significant cost increase could result and time does not permit, at
least a ceiling price shall be negotiated unless impractical
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2024 Webinar Series - THE FAR
Subpart 43.103 Types of contract modifications:
• Bilateral modifications or “supplemental agreements” must be
signed by both the Contracting Officer and the contractor and are
used to:
• Make negotiated equitable adjustments resulting from a change
order
• Definitize letter contracts
• Reflect other agreements of the parties modifying the terms of
contracts
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series - THE FAR
Subpart 43.103 Types of contract modifications:
• Unilateral modifications are signed only by the Contracting Officer
and are used to:
• Make administrative changes (e.g., change in Contracting Officer)
• Issue change orders
• Make changes authorized by clauses other than a “Changes”
clause (e.g., Property Options, Suspension of Work clauses)
• Issue termination notices
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2024 Webinar Series - THE FAR
Subpart 43.104 Notification of contract changes:
• If a contractor believes the Government has or may effect a contract change that is
not in writing, the contractor should notify the Contracting Officer “as soon as
possible
• The Contracting Officer then can:
• Confirm that it is a change, direct the further performance, and plan for its
funding;
• Countermand the alleged change; or
• Notify the contractor that the Government believes no change has occurred
• FAR clause 52.243-7, Notification of Changes incorporates the substance of FAR
provision 43.107 and generally is incorporated in any contract over $1,000,000
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2024 Webinar Series - THE FAR
Subpart 43.105 Availability of funds:
• Prohibits Contracting Officer from executing a modification that “causes or will
cause an increase in funds without having first obtained a certification of fund
availability, except for modifications to contracts” that:
• Are conditioned on the availability of funds (see FAR 32.703-2 – “necessary
for normal operations,” Congress previously appropriated funds, certain
IDIQ contracts)
• Contain a limitation of cost or funds clause (see FAR 32.704 – contractor
approaching the estimated cost of the contract; Contracting Officer can
authorize funding increase then ensure availability of funds)
• Certification of fund availability must be based on the negotiated price, or if
modification executed before an agreement on price, may be based on “the
best available estimate of cost”
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2024 Webinar Series - THE FAR
Subpart 43.107 Contract clause:
• Allows Contracting Officer to insert FAR clause 52.243-7, Notification of
Changes in certain contracts
• Primarily in negotiated research and development contracts
• Supply contracts for the acquisition of major weapon systems or principal
subsystems
• FAR clause 52.243-7 may not be used in contracts expected to be less than
$1,000,000, unless Contracting Officer anticipates that situations may arise
where the contractor may allege the Government has effected changes other
than those identified as such in writing and signed by the Contracting Officer
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2024 Webinar Series - THE FAR
Subpart 43.201 General:
• Nearly all Government contracts include a “Changes” clause that
permits the Contracting Officer to make unilateral changes:
• In designated areas
• Within the general scope of the contract
• By issuing written change order on Standard Form 30,
Amendment of Solicitation/Modification of Contract, unless
otherwise provided
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2024 Webinar Series - THE FAR
Subpart 43.201 General:
• Contractor must continue performance of the contract as changed,
but not obligated to incur costs beyond the limits in Limitation of
Cost or Limitation of Funds clauses if contract is cost-reimbursement
or incrementally funded
• Contracting Officer may issue a change order by electronic means
without an SF 30 if unusual or urgent circumstances
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2024 Webinar Series - THE FAR
What do the FAR “Changes” Clauses at FAR 52.243-1 through FAR 52.243-5 allow the
Contracting Officer to do?
Depending on the type of contract, Contracting Officer may, at any time, by written order, make
changes within the general scope of the contract in:
• Drawings, designs, specifications
• Method of shipping or packing
• Place of delivery, inspection, or acceptance
• Description of services
• Time of performance (days, hours, holidays, etc.)
• Place of performance
• Place of origin
• Tonnage to be shipped
• Amount of Government-furnished property
• Method or manner of performance of the work
• Directing acceleration in the performance of the work
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2024 Webinar Series - THE FAR
What If any such change causes an increase or decrease in the estimated cost
of, or the time required for, performance of any part of the work?
Contracting Officer shall make an “equitable adjustment” in:
• Estimated cost, delivery or completion schedule, or both
• Amount of any fixed fee
• Ceiling price
• Hourly rates
• Other affected terms
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2024 Webinar Series - THE FAR
What If any such change causes an increase or decrease in the estimated cost
of, or the time required for, performance of any part of the work?
. . . and the Contracting Officer shall modify the contract accordingly
Generally, Requests for Equitable Adjustment must be submitted within 30
days of the Change (see specific Changes clause in the contract)
If no agreement on Request for Equitable Adjustment, contractor may file a
claim under the contract’s Disputes clause
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2024 Webinar Series - THE FAR
Subpart 43.202 Authority to issue change orders:
• Must be issued by the Contracting Officer except when authority is
delegated to an Administrative Contracting Officer
• Administrative Contracting Officer generally is one who has some
authority over multiple contracts across agencies, e.g., in the case of
approving a novation or change-of-name
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2024 Webinar Series - THE FAR
Subpart 43.203 Change order accounting procedures:
• Requires Contracting Officers to advise contractors of the possible need to revise
their accounting procedures to segregate costs associated with the change
• Segregable costs include:
• Nonrecurring costs
• Costs of added distinct work caused by the change order
• Cost of recurring work
• No provision for what happens if contractor cannot segregate such costs
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2024 Webinar Series - THE FAR
Subpart 43.204 Administration:
• Change order documentation
• If change orders are not “forward priced,” two documents
required – change order and supplemental agreement reflecting
the equitable adjustment
• Administrative and unilateral changes initially require only the
change order
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2024 Webinar Series - THE FAR
Subpart 43.204 Administration:
• Definitization
• Equitable adjustments should be negotiated “in the shortest possible
time”
• Requires Contracting Officer to, among other things, establish suspense
systems, perform cost analyses, lists of significant contract events to
aid in reviewing Requests for Equitable Adjustment
• ACOs must seek CO concurrence before adjusting the contract delivery
schedule
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2024 Webinar Series - THE FAR
Subpart 43.204 Administration:
• Complete and final equitable adjustments
• Contracting Officers should ensure all elements of the equitable
adjustment have been presented and resolved
• Include in the supplemental agreement a release from the
contractor
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2024 Webinar Series - THE FAR
Subpart 43.205 Contract clauses:
• Prescribes specific FAR clauses and alternates for different types of contracts:
• 52.243-1 for Fixed Price contracts, with several Alternates
• 52.243-2 for Cost Reimbursement contracts, with several Alternates
• 52.243-3 for Time-and Materials or Labor-Hours contracts
• 52.243-4 for construction contracts
• 52.243-5 for construction contracts under the simplified acquisition threshold
(generally, $250,000)
• 52.243-6 requires the contractor to segregate costs related to Changes; used in
contracts of significant technical complexity, if numerous changes are anticipated,
or if deemed appropriate by the Contracting Officer
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2024 Webinar Series - THE FAR
Subpart 43.301 Use of forms:
• Prescribes that SF 30 must be used for:
• Any amendment to a solicitation
• Change orders issued under a contract’s Changes clause
• Any other unilateral contract modification issued under a contract clause
authorizing such modification without the consent of the contractor
• Administrative changes
• Supplemental agreements
• Removal, reinstatement, or addition of funds to a contract
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series - THE FAR
Subpart 43.301 Use of forms:
• Prescribes that SF 30 may be used for:
• Modifications that change the price of contracts for the
acquisition of petroleum as a result of an economic price
adjustment
• Termination notices
• Certain purchase order modifications
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series - THE FAR
Summary:
• Contract changes may be made through formal Modifications or through Change
Orders (if “within the general scope”)
• Contracting Officers must comply with the requirements of FAR Part 43 when issuing
Modifications or Change Orders
• If a Modification or Change causes an increase in price, contractor should promptly
file a Request for Equitable Adjustment
• If a Modification or Change causes a decrease in price, Contracting Officer generally
will calculate the decrease, or negotiate with the contractor
• If the contractor and Contracting Officer cannot agree on an equitable adjustment,
contractor may file a formal Claim under the contract’s Disputes clause (see FAR
provision 33.215 and clause 52.233-1)
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series
THE FAR
THANK YOU FOR ATTENDING!
FAR PART #43:
Contract Modifications
SPEAKER: Tamara McNulty
FIRM: Potomac Law Group
EMAIL: tmcnulty@potomaclaw.com
J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
2024 Webinar Series
THE FAR
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2024 Webinar Series
The FAR:
Federal Acquisition Regulations
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  • 18. The FAR – Federal Acquisition Regulations - WEBINAR SERIES 2024 JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
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  • 23. 2024 Webinar Series THE FAR THE FAR – PART 43 J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 24. 2024 Webinar Series - THE FAR FAR PART 43 Contract Modifications Link: https://acquisition.gov/content/part-43-contract-modifications June 21, 2024 J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 25. 2024 Webinar Series THE FAR FAR PART #43: Contract Modifications SPEAKER: Tamara McNulty FIRM: Potomac Law Group EMAIL: tmcnulty@potomaclaw.com J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 26. 2024 Webinar Series - THE FAR FAR Part 43 Contract Modifications The Basics: • Contract Modifications • Unilateral (require only Contracting Officer signature) • Bilateral (require Contracting Officer and Contractor signatures) • Change Orders (unilateral, only “in scope” changes) • Contractor Notifications & Forms J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 27. 2024 Webinar Series - THE FAR FAR Part 43 Contract Modifications 43.000 Scope of part 43.1 General 43.101 Definitions 43.102 Policy 43.103 Types of contract modifications 43.104 Notification of contract changes 43.105 Availability of funds 43.106 (Reserved) 43.107 Contract clause J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 28. 2024 Webinar Series - THE FAR 43.2 Change Orders 43.201General 43.202Authority to issue change orders 43.203Change order accounting procedures 43.204Administration 43.205Contract clauses 43.3 Forms 43.301Use of Forms J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 29. 2024 Webinar Series - THE FAR Subpart 43.000 Scope of part: • In general, Part 43 applies to all federal Government contracts, except for contract modifications for “extraordinary relief” under FAR Subpart 50.1. • Also, task or delivery orders under an IDIQ contract are not considered contract modifications or changes. • Because IDIQ Task Orders and Delivery Orders under IDIQ contracts are considered “Contracts” in their own right, Government can make modifications or changes to Task Orders or Delivery Orders. J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 30. 2024 Webinar Series - THE FAR Subpart 43.101 Definitions: “Administrative change” is a unilateral change, in writing, “that does not affect the substantive rights of the parties.” J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 31. 2024 Webinar Series - THE FAR Subpart 43.101 Definitions: “Effective date” depends on the circumstances: • For an amendment to a solicitation, change order, or administrative change, the issue date • For a supplemental agreement, the date agreed upon by the parties • For a modification confirming a notice of termination for convenience, the same as the effective date of the initial notice • For a modification converting a termination for default to a termination for convenience, the effective date of the termination for default • For a modification confirming the Contracting Officer’s previous determination of the amount due in settlement of a termination for convenience, the same as the date of the previous letter determination J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 32. 2024 Webinar Series - THE FAR Subpart 43.102 Policy: • Only Contracting Officers “acting within the scope of their authority” can execute contract modifications on behalf of the Government • Other Government personnel may not: • Execute contract modifications • “Act in such a manner” as to make a contractor believe that he or she has the authority to bind the Government • “Direct or encourage” a contractor to perform work that properly should be directed through a contract modification • Contract modifications should be priced before execution, if no adverse affect on the Government; or if a significant cost increase could result and time does not permit, at least a ceiling price shall be negotiated unless impractical J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 33. 2024 Webinar Series - THE FAR Subpart 43.103 Types of contract modifications: • Bilateral modifications or “supplemental agreements” must be signed by both the Contracting Officer and the contractor and are used to: • Make negotiated equitable adjustments resulting from a change order • Definitize letter contracts • Reflect other agreements of the parties modifying the terms of contracts J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 34. 2024 Webinar Series - THE FAR Subpart 43.103 Types of contract modifications: • Unilateral modifications are signed only by the Contracting Officer and are used to: • Make administrative changes (e.g., change in Contracting Officer) • Issue change orders • Make changes authorized by clauses other than a “Changes” clause (e.g., Property Options, Suspension of Work clauses) • Issue termination notices J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 35. 2024 Webinar Series - THE FAR Subpart 43.104 Notification of contract changes: • If a contractor believes the Government has or may effect a contract change that is not in writing, the contractor should notify the Contracting Officer “as soon as possible • The Contracting Officer then can: • Confirm that it is a change, direct the further performance, and plan for its funding; • Countermand the alleged change; or • Notify the contractor that the Government believes no change has occurred • FAR clause 52.243-7, Notification of Changes incorporates the substance of FAR provision 43.107 and generally is incorporated in any contract over $1,000,000 J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 36. 2024 Webinar Series - THE FAR Subpart 43.105 Availability of funds: • Prohibits Contracting Officer from executing a modification that “causes or will cause an increase in funds without having first obtained a certification of fund availability, except for modifications to contracts” that: • Are conditioned on the availability of funds (see FAR 32.703-2 – “necessary for normal operations,” Congress previously appropriated funds, certain IDIQ contracts) • Contain a limitation of cost or funds clause (see FAR 32.704 – contractor approaching the estimated cost of the contract; Contracting Officer can authorize funding increase then ensure availability of funds) • Certification of fund availability must be based on the negotiated price, or if modification executed before an agreement on price, may be based on “the best available estimate of cost” J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 37. 2024 Webinar Series - THE FAR Subpart 43.107 Contract clause: • Allows Contracting Officer to insert FAR clause 52.243-7, Notification of Changes in certain contracts • Primarily in negotiated research and development contracts • Supply contracts for the acquisition of major weapon systems or principal subsystems • FAR clause 52.243-7 may not be used in contracts expected to be less than $1,000,000, unless Contracting Officer anticipates that situations may arise where the contractor may allege the Government has effected changes other than those identified as such in writing and signed by the Contracting Officer J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 38. 2024 Webinar Series - THE FAR Subpart 43.201 General: • Nearly all Government contracts include a “Changes” clause that permits the Contracting Officer to make unilateral changes: • In designated areas • Within the general scope of the contract • By issuing written change order on Standard Form 30, Amendment of Solicitation/Modification of Contract, unless otherwise provided J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 39. 2024 Webinar Series - THE FAR Subpart 43.201 General: • Contractor must continue performance of the contract as changed, but not obligated to incur costs beyond the limits in Limitation of Cost or Limitation of Funds clauses if contract is cost-reimbursement or incrementally funded • Contracting Officer may issue a change order by electronic means without an SF 30 if unusual or urgent circumstances J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 40. 2024 Webinar Series - THE FAR What do the FAR “Changes” Clauses at FAR 52.243-1 through FAR 52.243-5 allow the Contracting Officer to do? Depending on the type of contract, Contracting Officer may, at any time, by written order, make changes within the general scope of the contract in: • Drawings, designs, specifications • Method of shipping or packing • Place of delivery, inspection, or acceptance • Description of services • Time of performance (days, hours, holidays, etc.) • Place of performance • Place of origin • Tonnage to be shipped • Amount of Government-furnished property • Method or manner of performance of the work • Directing acceleration in the performance of the work J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 41. 2024 Webinar Series - THE FAR What If any such change causes an increase or decrease in the estimated cost of, or the time required for, performance of any part of the work? Contracting Officer shall make an “equitable adjustment” in: • Estimated cost, delivery or completion schedule, or both • Amount of any fixed fee • Ceiling price • Hourly rates • Other affected terms J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 42. 2024 Webinar Series - THE FAR What If any such change causes an increase or decrease in the estimated cost of, or the time required for, performance of any part of the work? . . . and the Contracting Officer shall modify the contract accordingly Generally, Requests for Equitable Adjustment must be submitted within 30 days of the Change (see specific Changes clause in the contract) If no agreement on Request for Equitable Adjustment, contractor may file a claim under the contract’s Disputes clause J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 43. 2024 Webinar Series - THE FAR Subpart 43.202 Authority to issue change orders: • Must be issued by the Contracting Officer except when authority is delegated to an Administrative Contracting Officer • Administrative Contracting Officer generally is one who has some authority over multiple contracts across agencies, e.g., in the case of approving a novation or change-of-name J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 44. 2024 Webinar Series - THE FAR Subpart 43.203 Change order accounting procedures: • Requires Contracting Officers to advise contractors of the possible need to revise their accounting procedures to segregate costs associated with the change • Segregable costs include: • Nonrecurring costs • Costs of added distinct work caused by the change order • Cost of recurring work • No provision for what happens if contractor cannot segregate such costs J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 45. 2024 Webinar Series - THE FAR Subpart 43.204 Administration: • Change order documentation • If change orders are not “forward priced,” two documents required – change order and supplemental agreement reflecting the equitable adjustment • Administrative and unilateral changes initially require only the change order J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 46. 2024 Webinar Series - THE FAR Subpart 43.204 Administration: • Definitization • Equitable adjustments should be negotiated “in the shortest possible time” • Requires Contracting Officer to, among other things, establish suspense systems, perform cost analyses, lists of significant contract events to aid in reviewing Requests for Equitable Adjustment • ACOs must seek CO concurrence before adjusting the contract delivery schedule J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 47. 2024 Webinar Series - THE FAR Subpart 43.204 Administration: • Complete and final equitable adjustments • Contracting Officers should ensure all elements of the equitable adjustment have been presented and resolved • Include in the supplemental agreement a release from the contractor J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 48. 2024 Webinar Series - THE FAR Subpart 43.205 Contract clauses: • Prescribes specific FAR clauses and alternates for different types of contracts: • 52.243-1 for Fixed Price contracts, with several Alternates • 52.243-2 for Cost Reimbursement contracts, with several Alternates • 52.243-3 for Time-and Materials or Labor-Hours contracts • 52.243-4 for construction contracts • 52.243-5 for construction contracts under the simplified acquisition threshold (generally, $250,000) • 52.243-6 requires the contractor to segregate costs related to Changes; used in contracts of significant technical complexity, if numerous changes are anticipated, or if deemed appropriate by the Contracting Officer J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 49. 2024 Webinar Series - THE FAR Subpart 43.301 Use of forms: • Prescribes that SF 30 must be used for: • Any amendment to a solicitation • Change orders issued under a contract’s Changes clause • Any other unilateral contract modification issued under a contract clause authorizing such modification without the consent of the contractor • Administrative changes • Supplemental agreements • Removal, reinstatement, or addition of funds to a contract J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 50. 2024 Webinar Series - THE FAR Subpart 43.301 Use of forms: • Prescribes that SF 30 may be used for: • Modifications that change the price of contracts for the acquisition of petroleum as a result of an economic price adjustment • Termination notices • Certain purchase order modifications J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 51. 2024 Webinar Series - THE FAR Summary: • Contract changes may be made through formal Modifications or through Change Orders (if “within the general scope”) • Contracting Officers must comply with the requirements of FAR Part 43 when issuing Modifications or Change Orders • If a Modification or Change causes an increase in price, contractor should promptly file a Request for Equitable Adjustment • If a Modification or Change causes a decrease in price, Contracting Officer generally will calculate the decrease, or negotiate with the contractor • If the contractor and Contracting Officer cannot agree on an equitable adjustment, contractor may file a formal Claim under the contract’s Disputes clause (see FAR provision 33.215 and clause 52.233-1) J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 52. 2024 Webinar Series THE FAR THANK YOU FOR ATTENDING! FAR PART #43: Contract Modifications SPEAKER: Tamara McNulty FIRM: Potomac Law Group EMAIL: tmcnulty@potomaclaw.com J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 53. 2024 Webinar Series THE FAR Please subscribe to our YouTube Channel for Gov Con Content Uploads including THESE WEBINARS! https://www.youtube.com/@jenniferschaus/videos J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com
  • 54. 2024 Webinar Series The FAR: Federal Acquisition Regulations THANK YOU FOR JOINING US! J Schaus & Associates, WASHINGTON DC – hello@JenniferSchaus.com