Types of Government Contract Modifications

Contract changes (“mods”) are common measures for many contract persons. These changes may affect contractual costs, delivery schedule, schedule, fees, terms and conditions and personnel. In addition, changes in technology, funding and mission requirements may necessitate changes to a contract. The complexity of contracts – which can involve many people from different functional areas within government and contract teams – can lead to misinterpretations and misunderstandings about requirements and administrative issues that only become apparent when the contract expires. Whenever the government wants something different from what was originally planned for the original contract, or if something unforeseen happens, a change may become necessary. The need for certain changes can be anticipated from the moment the government requirement is identified. B for example for regular price revisions due to the use of an economic price adjustment clause in a future contract. (i) changes that change the price of crude oil purchase contracts as a result of an economic price adjustment; (2) Requires the Contractor to promptly inform the Government of any government conduct that the Contractor is considering an amendment to the Contract, and a contract agent may be required to make a change outside the scope of application. This may be the case if the government requires an increase or decrease in the scope of work that goes beyond what is included in the Statement of Work and results in a change in contract costs. In such cases, the amendment is considered “bilateral” and must be approved and signed by the government and the contractor.

In addition, the Customer must justify the use of a single source (FAR 6.302-1) and comply with the synopsis requirements of FAR 5.201. An example of a form used to generate changes is the default form (SF) 30. A simple notice to the government that the contactor does not agree with the conditions (whether or not the contractor defines the acceptable conditions) will make it clear that the change work will be carried out in protest. The government`s policy for determining the prices of changes is found in FAR 43.102(b), which requires that changes to the contract be “evaluated prior to performance,” and if a negotiated price cannot be agreed within the available time, “at least a maximum price will be negotiated,” unless this is not feasible. Administrative changes are unilateral changes that do not affect the substantive rights of the parties. They are used to make changes, for example. B changes in the paying agent or the client`s name. In a recent case before the Armed Forces Contract Appeal Board, a contractor signed a bilateral amendment while accepting termination for simplicity and setting the contract value at zero. This agreement included a waiver. 43,301 Use of forms. (a) (1) Model Form 30 (SF 30), Application Amendment/Contract Amendment, is used (except for options referred to in paragraph 43.301(a)(2) or shares processed under Part 15) to: (i) any modification of a solicitation; (ii) change orders issued in accordance with the contract amendment clause; (iii) any other unilateral modification of the contract adopted under a contractual clause authorizing such modification without the consent of the contractor; (iv) administrative changes such as the correction of typographical errors, changes to the paying agency and changes to accounting and allocation data; (v) supplementary agreements, see 43.103; and (vi) the withdrawal, reinstatement or addition of funds to a contract. (2) Sf 30 may be used for: (i) changes that change the price of crude oil purchase contracts as a result of an economic adjustment in prices; (ii) notices of termination; and (iii) Order Changes in accordance with 13.302-3.

(3) If a change is likely to result in a price change, the estimated amount of the price change shall not be disclosed on copies of SF 30 provided to the Contractor. (b) Optional form 336 (OF 336), supplementary form or blank sheet may be used as additional sheet for contract amendment. (a) Modify the order documentation. If change orders are not evaluated on time, they need two documents: the change order and an additional agreement that reflects the appropriate adjustment of the contract terms that results from it. If a reasonable adjustment to the contract price or delivery terms, or both, can be agreed in advance, only an additional agreement must be issued, but administrative changes and changes made under a clause that gives the government a unilateral right to make a change (for example. B, an option clause) initially require only one document. .