Get Unit 52: Contract Modification And Adjustment - Easc Noaa

A contract modification could change the scope of the contract, the price of the contract, or both. A contract modification exists when the parties to the contract approve the modification either in writing, orally, or based on the parties' customary business practices.

increases or decreases from an agreed-upon level in published or otherwise established prices of specific items or the contract end items. based on increases or decreases in specified costs of labor or material that the contractor actually experiences during contract performance.

An equitable adjustment, in government contracting, is a contract adjustment pursuant to a changes clause, to compensate the contractor expense incurred due to actions of the Government or to compensate the Government for contract reductions.

Equitable Adjustment: If a change ordered by the government affects the cost or time required for contract performance, the FAR Changes Clause allows the contractor to seek an equitable adjustment. The contractor may request compensation for increased costs or time extensions resulting from the change.

If an agreement is reached, the contracting officer will issue a bilateral modification. If agreement can't be reached, the contracting officer may issue a unilateral change, which you have the right to pursue a claim against under your contract's disputes clause.

Definition: A Request for Equitable Adjustment (REA) refers to a formal document submitted by a party, usually a contractor or subcontractor, to seek compensation or modification of the terms of a contract due to unforeseen changes or circumstances that have impacted the performance of the contract.

The contracting officer must prepare and issue a contract modification to modify the agreement.

The Simplified Acquisition Threshold (SAT) is the dollar amount in federal acquisition represented by the anticipated award amount of a contract, under which contracting officers are directed to use simplified acquisition procedures to solicit and award the resulting contracts.