This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR Part 43 Modifications
FAR 43.102(a) states clearly that only Contracting Officers who are designated authority can execute a contract modification for the government and they cannot be overridden by established hierarchy. Not all offices abide by this. Those are the ones that harp on hierarchy, the sacred establishment of the chain of command and other such vocabulary. I’ve heard this practice referred to as Jehovah’s witness contracting. This is because those with a higher pay grade act in a top-down management style which forces subordinates to act in accordance with those above them instead of honing their own craft for themselves. When underlings don’t follow suit or speak of their desk with another colleague they are accused of “shopping for answers” or throwing their reviewer under the bus. Then management scolds teams for not thinking for themselves while submitting meeting minutes to the Director Of Contracting who in turn submits those in report form to agency headquarters washing management’s hands of such wrong behavior continuing the rank-and-file system that those with the lower pay grade remain the problem children while those who aspire to The Tower are promoted.
The CO must understand the overall cost of the modification before executing it (FAR 43.102)(b).
FAR 43.103 shows the types of contract modifications that are allowable. They are as follows:
Bilateral Modifications
These are signed by both the CO and the contractor. Remember that the contractor always signs first 😃
These include equitable adjustments, letter contracts and “other agreements”. This means price, product changes as well as commercial standards like shipping, performance location and novations.
Unilateral Modifications
This type of modification is only signed by the CO.
These include administrative changes, change orders, usage of contract clauses other than a changes clause and termination notices. Such includes mailing and communication, suspensions and stoppages along with options or termination.
The contractor has the responsibility to notify the government of changes through a request for modification (FAR 43.104)(a). The CO verifies funding (FAR 43.105). If verified and accepted the modification agreement is executed on a SF-30 (FAR 43.201)(a).
A lot of awardees don’t understand they can change their initial agreement. That’s just the launching pad. However, each agency has their own unique way of initiating the process. The SF-30 is the only thing that may be the same.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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