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DFARS Part 243 - Contract Modifications
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DFARS Part 243 - Contract Modifications
- 1. The DFARS –2025 The Defense Federal Acquisition Regulation Supplement A Complimentary Webinar Series JSchaus & Associates – Washington DC – hello@Jenniferschaus.com
- 2. The DFARS –2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – hello@Jenniferschaus.com ABOUT THE SERIES: We’ll cover each PART of THE DFARS Typically held Wednesdays + Fridays @ 12pm ET Complimentary + Recorded VIDEOS Posted on YouTube https://www.youtube.com/@jenniferschaus/videos PPTs Posted on SlideShare https://www.slideshare.net Sponsor/Advertising Options Available
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- 17. The DFARS –2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – hello@Jenniferschaus.com THE DFARS – PART 243
- 18. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com JSchaus & Associates – Washington DC – hello@Jenniferschaus.com DFARS PART 243 Contract Modifications SPEAKER: Tamara McNulty FIRM: Lewis Brisbois Bisgaard & Smith LLP PHONE: 202-558-0665 EMAIL: tamara.mcnulty@lewisbrisbois.com TODAYS SPEAKER + TOPIC
- 19. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com DFARS Part 243 vs. FAR Part 43 • Defense Federal Acquisition Regulation Supplement – DFARS • This Provides DoD Implementation and supplementation of the FAR • Not A Standalone Set Of Requirements • If Not In The DFARs Then Look To The FAR • FAR Part 43 Covers Contract Modifications- Most Modifications Will Follow FAR
- 20. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com Procedural Items Unpriced Change Orders Over $5 Million Contract Clauses DFARS PART 243 DFARs Part 243 is limited in Scope and Application
- 21. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com DFARS PART 243 PROCEDURAL ITEMS • 243.107-70 – Notification of Substantial Impact on Employment • THE PRIME’S OBLIGATIONS • Clause 249.7003 – If the DOD’s “termination or substantial reduction in defense program” primes must notify its subcontractors of “anticipated termination” IF: • All first-tier subcontractors with a value over $700,000 • All lower tier subcontractors with a value over $150,000*
- 22. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com DFARS PART 243 PROCEDURAL ITEMS • 243.170 – Identification of foreign military sales (FMS) obligations in Contract Modifications • DOD must use PGI 243.170 to clearly indicate the FMS on the front of the Mod & refer to the FMS by proper code in the Mod • 243.171 – Obligation or deobligation of funds • 243.172 – Application of Modifications
- 23. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com DFARS PART 243 CHANGE ORDERS • DFARS Subpart –243.2 Applies to Change Orders • 243.204-70-1(a) – Applies to unpriced change order with an estimated value exceeding $5 million • Exceptions for FMS, special access programs (70-1(b)* • These Change Orders must have a not-to-exceed amount (70-2) • The focus of this section is to set up a definitization process (70-3) • 50% of the NTE amount (70-4) • Further Exceptions for purchase of initial spares, & ship construction and repair (70-5)
- 24. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com DFARS PART 243 CONTRACT CLAUSES • 243.205-70 – Pricing Contract Modifications – Requires the insertion of Clause 252.243-7001 – Use of Contract Cost Principles • 243.205-71 – Covers REA and requires the SAME CERTIFICATION at 243.204- 71 • 243.205-72 – Unpriced Change Orders with estimated value over $5 million – Requires two clauses: • FAR 52.216-24 – Limitation on Government Liability – Government will insert a ceiling amount • FAR 52.217.7027 – Contract Definitization
- 25. JSchaus & Associates– Washington DC – hello@Jenniferschaus.com JSchaus & Associates – Washington DC – hello@Jenniferschaus.com THANK YOU For Attending! QUESTIONS? Please Contact Our Speaker: SPEAKER: Tamara McNulty FIRM: Lewis Brisbois Bisgaard & Smith LLP PHONE: 202-558-0665 EMAIL: tamara.mcnulty@lewisbrisbois.com
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Editor's Notes
- #18 ABOUT ME
- #19 IN OTHER WORDS, THESE REGULATIONS ARE IN ADDITION TO THE FAR REQUIREMENTS.
- #21 ONCE THE CONTRACTING OFFICER HAS NOTIFIED THE PRIME – THEN THE PRIME MUST…. *And impose a similar notice and flowdown requirement in subcontracts valued greater than $150k at all tiers
- #22 PGI- PROOCEDURES, GUIDANCE AND INFORMATION. PGI is a companion resource to the DFARS. Provides guidance and information relevant to FAR and DFARS topics The PGI for 171 provides guidance to the KO for how to provide sufficient information in each Mod to help the paying office ID the changes appropriately. The PGI for 172 (PGI 204.1671) provides guidance on how to understand the order of Mods, when the numeric order is NOT the order of when the changes took effect. The PGI then instructs that the order is determined by effective date and/or signature date
- #23 This limitation may be increased in certain circumstances. * AKA CLASSIFIED GOVT INITIATIVES. In either case, however, the KO should apply these standards to them to the maximum extent practicable, unless the KO makes a determination that it is impracticable. Then the KIO shall provide prior notice through agency channels
- #24 If the REA exceeds the simplified acquisition threshold the contractor MUST CERTIFY! 243-205-72 HAS OTHER AGREEMENTS WHICH REQUIRE THE CLAUSEs BUT FOR THIS PRESENTATION WE ONLLY CARE ABOUT UNPRICED CHANGE ORDERS.
- #25 Questions? My contact information is here you can take a picture of the slide or scan the QR code in the slice.