What statement should be included in a supplemental agreement to avoid subsequent controversies relating to the change?
To avoid subsequent controversies that may result from a supplemental agreement containing and equitable adjustment as a result of a change order, the CO should: 1. Ensure that all elements of the equitable adjustment have been presented and resolved.
What is the difference between a supplemental agreement and a bilateral modification?
Bilateral modification is a supplemental agreement to a contract that both the contracting officer and the contractor sign. In general, modifications change the terms and the conditions of a contract, including but not limited to the performance period, the statement of work, the price, or the quantity.
What is a supplemental agreement far?
A bilateral modification (supplemental agreement) is a contract modification that is signed by the contractor and the contracting officer. Bilateral modifications are used to- (1) Make negotiated equitable adjustments resulting from the issuance of a change order; (2) Definitize letter contracts; and.
Does the Changes clause apply to far 12 commercial contracts?
Commercial Item Contracts. When using FAR Part 12 procedures for the acquisition of commercial items, the Government does not have authority to unilaterally require changes.
What is an unpriced change order?
The FAR defines an unpriced change order as a change order not forwardly priced. This means that the final negotiated price will be determined later. Unpriced change orders define the work to be performed, but the price (adjustment to contract price) is to be negotiated later.
What authority should be cited in Block 13 of the SF 30?
-Bilateral modifications, including those issued under the Changes clause or any other appropriate clause will cite the appropriate clause in Block 13C of the SF30. -Other unilateral modifications, such as a exercise of option, will cite the appropriate clause or authority in Block 13D of the SF30.
What can be changed under the Changes clause?
The question is, what types of changes are authorized by the Changes clause? The answer is found in the Changes clause and the caselaw. The simple answer is: only limited types of changes, and generally, the terms and conditions in the contract cannot be changed by a change order.
Does FAR Part 31 apply to commercial items?
FAR Part 31 shall be used in pricing negotiated supply, service, experimental, developmental, and research contracts and contract modifications with commercial organizations whenever cost analysis is performed (see FAR 31.103(a)).
What is an unpriced contract?
An unpriced contract action is a within-scope change for which the terms, specifications or price are not agreed upon prior to start of contractor performance. An unpriced contract action is executed under urgent or uncertain conditions. This means that the final negotiated price will be determined later.
What does Definitized mean in contracting?
“Definitization” means the agreement on, or determination of, contract terms, specifications, and price, which converts the undefinitized contract action to a definitive contract.
What does the applicable contract Changes clause allow in this situation?
The Changes clause allows the contractor to propose changes to the work. This can result in more efficient contract performance. The Changes clause permits the government to ask for something new without the overhead of conducting a new procurement.
Can a supplemental agreement be issued in advance?
If an equitable adjustment in the contract price or delivery terms or both can be agreed upon in advance, only a supplemental agreement need be issued, but administrative changes and changes issued pursuant to a clause giving the Government a unilateral right to make a change ( e.g., an option clause) initially require only one document.
When to insert clause in solicitations for construction?
(d) The contracting officer shall insert the clause at 52.243-4, Changes, in solicitations and contracts for— (2) Construction, when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold.
What is the change clause in a contract?
43.201 General. (a) Generally, Government contracts contain a changes clause that permits the contracting officer to make unilateral changes, in designated areas, within the general scope of the contract.
When to use changes in cost reimbursement clause?
(1) The contracting officer shall insert the clause at 52.243-2, Changes-Cost-Reimbursement, in solicitations and contracts when a cost-reimbursement contract for supplies is contemplated. (2) If the requirement is for services and no supplies are to be furnished, the contracting officer shall use the clause with its AlternateI.