[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR342.7102]



[Page 72]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 342_CONTRACT ADMINISTRATION--Table of Contents

 

         Subpart 342.71_Administrative Actions for Cost Overruns

 

Sec. 342.7102  Contract modifications.



    (a) Modifications to contracts containing the Limitation of Cost 

clause shall include either:

    (1) A provision increasing the estimated or ceiling amount referred 

to in the Limitation of Cost clause of the contract and stating that the 

clause will thereafter apply in respect to the increased amount; or

    (2) A provision stating that the estimated or ceiling amount 

referred to in the contract is not changed by the modification and that 

the Limitation of Cost clause will continue to apply with respect to the 

amount in effect prior to the modification.

    (b) A fixed-fee provided in a contract shall not be changed when 

funding a cost overrun. Changes in fixed-fee will be made only to 

reflect changes in the scope of work which justify an increase or 

decrease in fee.



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