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Government Contracting - DFARS Part 243 - Contract Modifications - Win Federal Contracts
1. DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
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2. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About The Series
Complimentary Webinar Series
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3. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
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4. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
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5. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
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6. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
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8. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
9. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
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16. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Lewis Rhodes
McMahon, Welch and Learned, PLLC
lrhodes@mwllegal.com
17. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
Contract Modifications
Wednesday, 29 September 2021
18. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
DFARs Part 243 vs. FAR Part 43
Defense Federal Acquisition Regulation Supplement – DFARS
- This Provides DoD Implementation and Supplementation of the FAR
- Not a Stand Alone Set of Requirements
- If Not in the DFARS, then look to the FAR
FAR Part 43 covers contract modifications – most modifications will follow the FAR
19. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
DFARS Part 243 is limited in Scope and Application
• Procedural Items
• Unpriced Change Order Over $5 million
• Contract Clauses
20. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
PROCEDURAL ITEMS
• 243.107-70 – Notification of Substantial Impact on Employment
• Clause 249.7003 – If a “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
21. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
PROCEDURAL ITEMS (Cont)
• 243.170 – Identification of Foreign Military Sales
• 243.171 – Obligation or Deobligation of Funds
• 243.172 – Application of Modifications
These all point to Procedures, Guidance, and Information (PGI) Sections
- PGI is a list of procedures and information that do not meet the criteria for inclusion in the DFARS
- Generally, this means guidance to the contracting officers
22. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
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
- These Change Orders must have a not-to-exceed amount
- The focus of this section is to set up a definitization process
- 180 days or 50% of the NTE amount – which ever is sooner
- Exceptions for initial parts, ship construction/repair and contingency/humanitarian operations
23. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
CHANGE ORDERS (cont).
243.204-71 is broader and applies to Requests for Equittable Adjustment
- Applies to all REAs that exceed the simplified acquisition threshold ($250,000)
- These REAs require a certification under DFARS Clause 252.243-7002
- Certify that the Request is made in Good Faith
- This Certification is different than the Claim Certification under the Contracts Disputes Act
24. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
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 as 243.204-71
243.205-72 – Unpriced Change Orders with estimated value over $5 million – Requires two clauses:
- 252.217-707 – Definization Schedule
- FAR 52.216-24 – Limitation on Government Liability – Government will insert a ceiling amount
25. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #243
FAR PART 43 – Unilateral Modifications
FAR 43.103(b) – Unilateral Modifications
- A unilateral modification is only signed by the contracting officer and is used for things such as
- Administrative Changes
- Make Changes authorized by clause other than a changes clause
COVID VACCINE MANDATE – Soon to be issued FAR Clause will likely be implemented by Unilateral Modifications
- Clause other than a changes clause
26. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
THANK YOU Our Speaker
Lewis Rhodes
McMahon, Welch and Learned, PLLC
lrhodes@mwllegal.com
27. Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulations
Complimentary Webinar Series
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
Editor's Notes
Internal Brief
Update the team on work we’re doing to stay ahead of competition and improve services to our clients
Announcement this week
Intro Michael and Andrea