[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 819-820]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 43_CONTRACT MODIFICATIONS--Table of Contents

 

                       Subpart 43.2_Change Orders

 

43.204  Administration.



    (a) Change order documentation. When change orders are not forward 

priced, they require two documents: the change order and a supplemental 

agreement reflecting the resulting equitable adjustment in contract 

terms. 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.

    (b) Definitization. (1) Contracting officers shall negotiate 

equitable adjustments resulting from change orders in the shortest 

practicable time.

    (2) Administrative contracting officers negotiating equitable 

adjustments by delegation under 42.302(b)(1), shall obtain the 

contracting officer's concurrence before adjusting the contract delivery 

schedule.

    (3) Contracting offices and contract administration offices, as 

appropriate, shall establish suspense systems adequate to ensure 

accurate identification and prompt definitization of unpriced change 

orders.

    (4) The contracting officer shall ensure that a cost analysis is 

made, if appropriate, under 15.404-1(c) and shall consider the 

contractor's segregable costs of the change, if available. If additional 

funds are required as a result of the change, the contracting officer 

shall secure the funds before making any adjustment to the contract.

    (5) When the contracting officer requires a field pricing review of 

requests for equitable adjustment, the contracting officer shall provide 

a list of any significant contract events which may aid in the analysis 

of the request. This list should include--

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

    (ii) Date of submission of initial contract proposal and dollar 

amount;

    (iii) Date of alleged delays or disruptions;

    (iv) Performance dates as scheduled at date of award and/or 

modification;

    (v) Actual performance dates;

    (vi) Date entitlement to an equitable adjustment was determined or 

contracting officer decision was rendered, if applicable;

    (vii) Date of certification of the request for adjustment if 

certification is required; and

    (viii) Dates of any pertinent Government actions or other key events 

during contract performance which may have an impact on the contractor's 

request for equitable adjustment.



[[Page 820]]



    (c) Complete and final equitable adjustments. To avoid subsequent 

controversies that may result from a supplemental agreement containing 

an equitable adjustment as the result of a change order, the contracting 

officer should--

    (1) Ensure that all elements of the equitable adjustment have been 

presented and resolved; and

    (2) Include, in the supplemental agreement, a release similar to the 

following:



                    CONTRACTOR'S STATEMENT OF RELEASE



    In consideration of the modification(s) agreed to herein as complete 

equitable adjustments for the Contractor's..........(describe).......... 

``proposal(s) for adjustment,'' the Contractor hereby releases the 

Government from any and all liability under this contract for further 

equitable adjustments attributable to such facts or circumstances giving 

rise to the ``proposal(s) for adjustment'' (except for..........)



[48 FR 42386, Sept. 19, 1983, as amended at 56 FR 15154, Apr. 15, 1991; 

62 FR 51271, Sept. 30, 1997]