FAR Part 43

Question 1

Administrative Change:

Answer 1

A unilateral contract change in writing that does not affect
the substantive rights of the parties (e.g., change in the paying office). (FAR 43.101)

Question 2

Effective Date

Answer 2

Specific definitions depending on the type of contract modification (e.g., the issue date for a solicitation amendment). (FAR 43.101)

Question 3

Policy on Contract Modifications

Answer 3

Only contracting officers acting within the scope of their authority can execute
contract modifications on behalf of the Government. (FAR 43.102(a))

Contract modifications should be priced before execution if possible, to protect the Government’s interest. (FAR 43.102(b))

Question 4

Types of Contract Modifications:

Answer 4

Bilateral Modifications: Signed by both the contractor and the contracting officer, used for negotiated
adjustments. (FAR 43.103(a))

Unilateral Modifications: Signed only by the contracting officer, used for administrative changes, change orders, and other specific changes. (FAR 43.103(b))

Question 5

Notification of Contract Changes:

Answer 5

Contractors must notify the Government in writing if they believe a change has been made that is not
identified as such in writing and signed by the contracting officer. (FAR 43.104(a))

The clause at 52.243-7, Notification of Changes, incorporates this policy. (FAR 43.104(b))

Question 6

Availability of Funds:

Answer 6

The contracting officer must obtain a certification of fund availability before executing a contract modification that increases funds. (FAR 43.105(a))

Question 7

Contract Modifications Change Orders

General

Answer 7

Government contracts often contain a changes clause that allows the contracting officer to make unilateral
changes within the scope of the contract. (FAR 43.201(a))

Contractors must continue performance as changed, within the limits of cost or funds clauses. (FAR 43.201(b))

Question 8

Authority to Issue Change Orders:

Answer 8

Change orders must be issued by the contracting officer unless delegated to an administrative contracting
officer. (FAR 43.202)

Question 9

Change Order Accounting Procedures:

Answer 9

Contractors may need to revise accounting procedures to segregate costs for changed work. (FAR
43.203(a))

Direct costs normally segregable include nonrecurring costs, costs of added distinct work, and costs of recurring work. (FAR 43.203(b))

Question 10

Change Orders

Administration:

Answer 10

Change orders require documentation and, if not forward priced, a supplemental
agreement for equitable adjustments. (FAR 43.204(a))

Contracting officers must negotiate equitable adjustments promptly and ensure accurate identification and prompt definitization of unpriced change orders. (FAR 43.204(b))

Question 11

Change Orders

Contract Clauses

Answer 11

Various clauses depending on the type of contract and change, such as Changes-Fixed- Price, Changes-Cost-Reimbursement, and Changes-Time-and-Materials or Labor- Hours. (FAR 43.205)

Question 12

Part 43 - Contract Modifications Forms

Use of Forms:

Answer 12

Standard Form 30 (SF 30) is used for amendments, change orders, unilateral contract modifications, administrative changes, supplemental agreements, and fund adjustments. (FAR 43.301(a)(1))

The Optional Form 336 (OF 336) or a blank sheet can be used as a continuation sheet for a contract modification. (FAR 43.301(b))

Question 13

Only contracting officers acting

Answer 13

within the scope of their authority are
empowered to execute contract modifications.

Other government personnel
shal not execute contract modifications, act in such a manner as to cause the contractor to believe that they have authority to bind the government, or direct or encourage the contractor to perform work that should be the subject of a contract
modification.

Question 14

Unilateral agreement

Answer 14

To make administrative changes, issue change orders, make changes
authorized by clauses other than the Changes clause, as well as issue termination notices

Question 15

Bilateral (supplemental) agreement

Answer 15

To make negotiated equitable adjustments resulting from a change
order, definitize letter contracts, and reflect other agreements modifying the terms and conditions

Question 16

Solicitation amendment
Change order Administrative c h a n g e

Answer 16

Effective as of the issue date of the amendment, change order, or administrative change

Question 17

Supplemental agreement

Answer 17

Effective as of the date agreed upon by the contracting parties

Question 18

Confirming notice of termination for convenience

Answer 18

Effective as of the effective date of the initial notice of termination

Question 19

Converting a termination for default into a termination for convenience

Answer 19

Effective as of the effective date of the termination for default

Question 20

Confirming a previous letter determination
o f an amount due in a termination for convenience

Answer 20

Effective as of the effective date of the previous letter determination

Question 21

The Changes clause in a contract permits the
contracting officer to make

Answer 21

unilateral changes in designated areas within the contract scope.

Upon receipt of the change order, the contractor must comply with the change without stopping work.

Negotiation of equitable adjustments may result from change orders.

Question 22

Standard Form 30

Used For:

Answer 22

Any amendment to a solicitation

Change orders issued under the
Changes clause of the contract

Any other unilateral contract modification not requiring consent of the contractor

Administrative changes

Supplemental agreements
Removal, reinstatement, or addition of funds