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Introduction to Contracting: Introduction to Contracting:

Introduction to Contracting: - PowerPoint Presentation

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Uploaded On 2015-10-06

Introduction to Contracting: - PPT Presentation

Contract Modifications 2 Learning Objectives Participants should be able to answer these questions What is a contract modification What are the different types of mods What are the different kinds of mods ID: 151937

mods contract modification modifications contract mods modifications modification good writing contracting types administrative classes kinds change office issuedthese digit usc amp signed

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Slide1

Introduction to Contracting:Contract ModificationsSlide2

2Learning Objectives

Participants should be able to answer these questions -

What is a contract modification?

What are the different types of mods?

What are the different kinds of mods?What are the different classes of mods?How do I write a good modification?Slide3

3

What is a Contract Modification?

FAR 2.101:

A contract modification is any written change in the terms of the contract.

A contract cannot be changed verballyIt must be in writing.You can imply a change verbally.

Therefore, you must be very careful when talking to contractors.Slide4

4

Types of Contract Modifications

Only two types:

UNILATERAL

A contract modification signed only by the contracting officer. (E.g., administrative changes)BILATERAL A contract modification signed by the both the contractor and the contracting officer. (E.g. supplemental agreement)Slide5

5

Kinds of Contract Modifications

There are only two kinds of mods:

Contract Administrative Office issued

These are “A” mods (E.g., A00001, etc)Contracting Office IssuedThese are “P” mods (E.g., P00001, etc)

Includes mods issued by the TCOSlide6

6

Classes of Contract Mods

There are three classes of mods:

Administrative

UnilateralAuthority derived from clauses in the contract or statuteOther Agreements

Bilateral

Negotiated changes to the contract

Change Orders

Specialized contract modificationSlide7

7

Change Orders

Based upon Changes Clause in contract

Issued unilaterally

Contractor obligated to performApplicable only to “in scope” changes in certain areas

Government provided specification

Method of shipment or packing

Place of delivery

If cost impact, include NTE and dollars

Negotiate equitable adjustment and definitizeSlide8

8

Writing Good Modifications

Step 1 – Get organized

List out by contract area all the changes

Write a one sentence “Purpose” statementStep 2 – Filling in the SF 30Mod numberBasic Contract – six digit alphanumeric identifier

Order – two digit alphanumeric

Special mod numbers (See DFARS 204.71)

Get the right number (R2M, ACPS & NAFI)Slide9

9

SF 30 (Cont’d)

Authority

Clause in the Contract

Terminations clauseOptionStatutory AuthorityJ&A Authority (10 USC 2304(c)(1))

General Authority

Title 10 USC, Chapter 137 (????)

FAR 43.103(a) or (b)

Writing Good ModificationsSlide10

10

Writing Good Modifications

Body of the Modification

Keep changes separate and distinct

Make changes in orderUse “correct” when you mean correctUse “change” when you man changeRestate as necessary

Use “From… To…” format

Summarize dollarsSlide11

11

Writing Good Modifications

Substituting pages

Use when large sections of the contract are being revised

Mark changesUse alpha-character to maintain page numberIdentify mod number at the top rightWrite “THIS IS A REPLACEMENT PAGE” on the bottomSlide12

12

Writing Good Modifications

Get adequate consideration

Changes may require consideration

MonetaryDeliveryAdditional workPayment instructionsWhen adding funds – think about payment

Clarity – make your changes crystal clear