[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR43]



[Page 819]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 43_CONTRACT MODIFICATIONS--Table of Contents

 

                       Subpart 43.2_Change Orders

 

43.203  Change order accounting procedures.



    (a) Contractors' accounting systems are seldom designed to segregate 

the costs of performing changed work. Therefore, before prospective 

contractors submit offers, the contracting officer should advise them of 

the possible need to revise their accounting procedures to comply with 

the cost segregation requirements of the Change Order Accounting clause 

at 52.243-6.

    (b) The following categories of direct costs normally are segregable 

and accountable under the terms of the Change Order Accounting clause:

    (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., 

new subcontract work, new prototypes, or new retrofit or backfit kits).

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