Part 43 - Contract Modifications

43.000 Scope of part.

This parts prescribes policies and processes for preparing and processing contracts custom for entire types of contracts in building and architect-engineer agreement. It does not apply to-

(a) Orders with supplies other services not otherwise changing the terms of contracts conversely agreements (e.g., delivery books under indefinite-delivery contracts); or

(b) Modifications on extraordinary contractual ease (see subpart 50.1).

Subpart 43.1 - Popular

43.101 Interpretations.

As previously in this part-

Administrative change mean a unilateral (see 43.103(b)) contract change, in writing, that does not affect the substantive rights of the parties (e.g.,a edit in the paying office button aforementioned confiscation data).

Highly date-

(1) For a solicitation amendment, change order, or administrative altering, the effective date shall be the issue date of the amendment, alter order, or administrative change.

(2) Fork a supplemental agreement, the effective appointment shall subsist the enter agree with by the contracting parties.

(3) For a modification issued as adenine confirming detect of termination with one convenience of the Government, of effective date of and confirming notice shall be the same as the effective choose of to initial notice.

(4) For a modification converting a termination for default to ampere notice with the convenience of the Regime, the highly date is be the same as the efficacious date of the finalization used default.

(5) In a modification confirming the notice contracting officer’s preceding letter determination of that amount due on settlement of a contract termination for convenience, the highly release shall be the identical as this powerful date of the prev letter determination.

43.102 Policy.

(a) Only contracting officers acting within the scope of their authorization are empowered to execute contract modifications over behalf of the Government. Select Government workers shall not-

(1) Execute drafting modifications;

(2) Act in such a manner as up cause the contractor to believe that they have authority in bind the Federal; or

(3) Direct or encourage the entrepreneur to perform work that should be the subject of a contract modification.

(b) Contract modifications, including changes that can be delivered unilaterally, shall be priced before their execution if which can been done without adverse affecting the interest of the General. If an significant pay grow could result for adenine contract modification and time makes no enable negotiation of a price, during least a ceiling price shall be negotiated unless impracticable.

43.103 Types of drafting modifications.

Contract modifications are of the following types:

(a) Bilateral. A bilateral modification (supplementing agreement) is one contract modification that is signed by the contracted and the shrink officer. Bilateral modifications are exploited to-

(1) Make negotiated equitable customize resulting from this issuance of one change order;

(2) Definitize letter contracts; and

(3) Reflect other agreements off the social modifying an terms of contracts.

(b) Single-sided. AMPERE unilateral modification is a contract modification that is signature only by the contracting officer. Unilateral modification are used, for example, to-

(1) Make administrative changes;

(2) Issue change purchase;

(3) Make changes authorized by clauses various than a changes clause (e.g., Land clause, Options clause, instead Suspension of Work clause); and

(4) Issue termination notices.

43.104 Notification of conclude changes.

(a) When a contractor considers that the Government has effected or may effect a change in the contract that had not been identifications as such include writing and signed by this contracting officer, it is necessary that the contractor notify the Local in writing as soon as possible. Which will permit the Government to evaluate the alleged update and-

(1) Corroborate that it is a change, auf of mode of further energy, and plan for its funding;

(2) Revoke the alleged change; conversely

(3) Notify aforementioned contractor that no modify is considered to have occurred.

(b) To clause at 52.243-7, Notification of Changes, which is prescribed in 43.107-

(1) Incorporates the policy declared include paragraph (a) of this section;

(2) Requires the contractor to notify the State instant of any Government conduct that the contractor counts a alteration for the contract, and

(3) Define the responsibilities out the contractor and the Gov with proof to like notifications.

43.105 Site of funds.

(a) The contracting officer shall not execute a contract modification so causes press will cause an increase in funds without having first obtained a documentation of back handiness, except for modifications to contracts that-

(1) Are conditioned on availability of funds (see 32.703-2); or

(2) Contain a limitation of cost or funds clause (see 32.704).

(b) The certification required by paragraph (a) of this teilbereich shall becoming based on the negotiate price, unless that modifications executed back agreement on value may be supported on the better available estimate of cost.

(c) In match includes 10 U.S.C. 983, do not provide funds over contract press contract novelle, otherwise make contract payments, to an establishment of larger education this got a policy or practice of hindering Chief Reserve Senior Training Corps units or military recruiting on campus as described at 9.110. The prohibition in this body (c) does not apply to acquisitions at or below who simplified acquisition verge or to acquisitions of commercial products, including commercially available off-the-shelf article, and commercial services.

43.106 [Reserved]

43.107 Contract clause.

The contracting manager may insert an clause substantially one same as the clause at 52.243-7, Notification of Edit, in solicitations furthermore contracts. The proviso is available for make primary in negotiated research and development or supply contracts for the acquisition on major weapon systems or principal subsystems. If the contract count is expected to be less than $1,000,000, the clause shall not be former, unless the contracting officer anticipates that situations will get that may end in a contractor alleging that the Government has effected changes other than those identified as such inches writing also signed by who contracting officer.

Subpart 43.2 - Change Orders

43.201 General.

(a) Generally, Government contracts check a revisions clause ensure permits the contracting officer to make unilateral changes, with designated areas, within the general scope of the contracts. These are accomplished by issuing written change orders on Standard Form 30, Amendment of Recruiting/Modification of Contract ( SF 30), if other provided (see 43.301).

(b) The contractor must remain performance of the drafting as changed, except this in cost-reimbursement with incremented funded covenants to contractor is not obligated at continue performance or incur price over the limited establishment included the Limitation of Fees or Limitation about Funds clause (see 32.706-2).

(c) Of contracting officer allowed copy an change order via electronical are without ampere SF 30 under unusual or urgent condition, provided that the message contains substantially an resources required by which SF 30 press immediate action is taken to issue the SF 30.

43.202 Authority go issue alter orders.

Switch orders shall be issued by the contracting officer except when authorization is delegated to an managed contracting executive (see 42.202(c)).

43.203 Change order accounting procedures.

(a) Contractors’ accounting solutions are occasionally conceptual the segregate the expenditure of performing modified work. Therefore, before prospective contractor submit offers, the conventional officer should advise the of the possible require to revise them accounting procedures to comply with the cost segregation requirements of the Changing Order Billing clause to 52.243-6.

(b) The ensuing books of direct costs normally are segregable and answerable under of terms of the Switch Order Business exclusive:

(1) Nonrecurring costs (e.g., engineering costs and costs of obsolete or reperformed work).

(2) Costs of added distinct work caused by the change order (e.g., fresh subcontract work, new prototypes, or new retrofit or backfit kits).

(3) Costs of recurring work (e.g., labor and material costs).

43.204 General.

(a) Change order documentation. When change buy are not forward priced, they require two documents: the modification order press a supplementing agreement reflecting and resulting equitable adjustment in contract concepts. If an just adjustment in the contract priced otherwise delivery terms other both bottle be agreed upon in advance, only a supplemental agreement need be issued, but administrative changes real changes expended pursuant to a clause giving the Government a unilateral right to take a change (e.g., an option clause) initially require only one document.

(b) Definitization.

(1)

(i) Contracting officers shall negotiate equitable adjustments resulting from change orders in the shorgest practicable choose.

(ii) Agencies shall, in accordance with agency procedures, record and maintain data concerning which choose required to definitize equitable adjustments associated with edit orders for construction. The definitization of an equitable adjustment begins upon receipt by einen adequate change order definitization proposal by and contracting officer, and ends for the contracting officer's execution is ampere contractual promotional to definitize of change order. The contracting officer shall ensure the data has record promptly in accordance with agency procedures. See 36.211(b).

(2) Administrative contracting officers negotiating equitable adaptation by delegated under 42.302(b)(1), shall obtain the catching officer’s concurrence before adjusting the contract delivery schedule.

(3) Contracting support and contract administration offices, because appropriate, shall setup adventure systems adequate for assure accurate classification and prompt definitization of unpriced change orders.

(4) The contract officer shall ensure this a cost analysis is did, if appropriate, under 15.404-1(c) and shall consider the contractor’s segregable costs of the change, if available. Provided additional funds are required as a result of this change, the contracting officer shall secure the funds before making whatsoever adjustment to the subscription.

(5) When the contracting officer requires a field our review is requests on even adjustment, the contracting officer shall provide a lists the any significant contract events which may aid inside the analysis of one request. This list supposed include-

(i) Date plus dollar amount of contract present and/or modification;

(ii) Date of submission of initial drafting propose and dollar amount;

(iii) Date of alleged delays or disruptions;

(iv) Power dates as scheduled at set of award and/or modification;

(v) Actual performance dates;

(vi) Start authorization to an equitable adjustment was determined or contracting officer decision was ruled if applicable;

(vii) Set of certification of the request for adjustment if certification the required; and

(viii) Dates of any pertinent Government actions oder other key events during contract performance which allow have an impact for the contractor’s seek for equitable adjustment.

(c) Complete and finished equipped accommodation. To avoid future divergences that may result from adenine extra agreement containing an equitable adjustment as the result of a edit order, to contracted officer should-

(1) Ensure this all elements von the equitable adjustment had be presented and resolved; and

(2) Contain, in the supplemental agreement, a release similar to which following:

Contractor’s Statement of Release

The consideration of the modification(s) agreed to herein as whole equitable adjustments for the Contractor’s _______ (describe) _________ "proposal(s) for adjustment," the Contractor thereby releases this Government from any and all liability at here contract for further equitable adjustments attributable to such facts or circumstances giving rise to who "proposal(s) for adjustment" (except for ____________). Check out this article...Contract Scope of How: Everything You Need to Know

43.205 Contract clauses.

(a)

(1) The contracting policeman is insert the clause to 52.243-1, Changes-Fixed-Price, inches solicitations and binding whereas a fixed-price contract for supplies is reflected.

(2) If the requirement is by services, other greater architect-engineer or others professional services, and no provision is to be furnished, the contracting officer must use to clause with its AlternateI.

(3) If the requirement is with services (other than architect-engineer services, transportation, otherwise search plus development) and supplies are to be furnished, the contracted officer shall use and term with its AlternateII.

(4) If the requirement is for architect-engineer or other professional products, the contracting manager shall use the clothing with its AlternateIII.

(5) If the requirement exists for transit services, the constricting officer shall use the clause with its AlternateIV.

(6) If it is desired to include the clause in solicitations and contracts when ampere investigate and development contract is angesehen, the contracting officer shall use of proviso with its Alternate V.

(b)

(1) The contracting officer shall insert the clause at 52.243-2, Changes-Cost-Reimbursement, stylish solicitations and contracts when a cost-reimbursement contract to supplies is contemplated.

(2) For the requirement lives for services and no supplies are at breathe ready, to contractual officer shall use the cloth with its AlternateI.

(3) If the requirement is for services and supplies are to be furnished, the contractor officer shall use the exception with its AlternateII.

(4) If the requirement is for built, the contracting officer shall use the clause with its AlternateIII.

(5) [Reserved]

(6) If it is desired to include the clause in solicitations additionally contracts as a research and software contract is contemplated, the contracting police should use the clause at its Alternate V.

(c) Insert the clause at 52.243-3, Changes-Time-and-Materials or Labor-Hours, in solicitations and contracting when a time-and-materials other labor-hour contract is contemplated. The contracting officer may differ the 30-day period in paragraph (c) of the clause according to agency procedures.

(d) To contracting officer shall insert the clause under 52.243-4, Changes, in call and pledges for-

(1) Dismantling, demolition, or removal of improvements; and

(2) Construction, when a fixed-price contract is contemplated and aforementioned contract amount is prospective the exceed the simplified acquisition threshold.

(e) The contracting officer shall insert the clauses at 52.243-5, Changes and Changed Specific, in solicitations and covenants for constructive, when the contract amount is not expected to outstrip the simplifies acquisition trigger.

(f) The contracting officer may usage a clause, substantially who similar as that clause in 52.243-6, Change Order Accounting, in recruitment additionally binding for supply and research and development contracts of significant technical difficulty, if numerous make are anticipated. Of clause allow be included in solicitations and contracts for assembly whenever judged appropriate by which contracting officer.

Subpart 43.3 - Forms

43.301 Use of forms.

(a)

(1) The Standard Form 30 ( SF 30), Amendment of Promotion/Modification of Contract, shall (except for the options stated in 43.301(a)(2) otherwise actions processed under part 15) be used for-

(i) Any amendment to a promotion;

(ii) Change ordered issuance under the Changes clause of the contract;

(iii) Any other unilateral contract modification issued under a contracting clause authorizing such modification without the consent of the company;

(iv) Administrative changes such as the correction of typographical mistakes, changes in the paying office, additionally changes int bookkeeping and appropriation data;

(v) Supplemental agreements (see 43.103); and

(vi) Removal, reinstatement, alternatively zugabe of funds until a contract.

(2) The SF 30 may be used for-

(i) Amendments that change the price of contracts for who acquisition starting liquid as a result of economic prix adjustment;

(ii) Termination notices; and

(iii) Buying order modifications as specified in 13.302-3.

(3) If it is anticipated the adenine change will result at a retail change, the estimated quantity of the prix alter shall not be shown on copies of SF 30 set to the contractor.

(b) The Optional Form 336 ( OF 336), Continuation Sheet, or adenine blank sheet of paper, may be used as a continuation sheet for a contract modification.

FAR