What is the FAR Changes clause?
The Federal Acquisition Regulation (“FAR”) defines “change order” to mean “a written order, signed by the contracting officer, directing the contractor to make a change that the Changes clause authorizes the contracting officer to order without the contractor’s consent.” FAR 2.101.
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.
What is an equitable adjustment far?
In government contracts, the FAR definition of equitable adjustment refers to an adjustment that pays you for work that is directed by the agency. It also applies to work that ultimately increases the cost of the original contract.
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 FAR clause?
The Federal Acquisition Regulation (FAR) is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds. The FAR also contains standard solicitation provisions and contract clauses and the various agency FAR supplements.
Is a request for equitable adjustment a claim?
A dispute arises between the contractor and the Government. The contractor submits a Request for Equitable Adjustment (“REA”) or a claim. If the contractor submits a REA and the REA is unsuccessful, it submits a claim.
What is the difference between a change order and a supplemental agreement?
A supplemental agreement is a bilateral change order to a contract where the parties agree that specified additional work will be accomplished in return for a specified consideration, normally additional money and/or time.
What is the difference between a claim and a request for equitable adjustment?
What is the best method to calculating an equitable adjustment?
Since the Court of Claims decision on Bruce Construction in 1963, the reasonable cost approach has generally been considered the best approach for pricing an equitable adjustment. Use it whenever accurate information is available concerning contractor costs affected by the modification.
What type of modification may be used to terminate a contract?
There are two types of contract modifications: unilateral and bilateral. Unilateral modifications are signed only by a contracting officer and are generally used to make administrative changes, issue change orders, make changes authorized by clauses other than the Changes clause, and issue termination notices.
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.