[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR43.204]

[Page 797-798]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 43--CONTRACT MODIFICATIONS--Table of Contents
 
                       Subpart 43.2--Change Orders
 
Sec. 43.204  Administration.

    (a) Change order documentation. When change orders are not forward 
priced, they require two documents: the change order and a supplemental 
agreement reflecting the resulting equitable adjustment in contract 
terms. If an equitable adjustment in the contract price or delivery 
terms or both can be agreed upon in advance, only a supplemental 
agreement need be issued, but administrative changes and changes issued 
pursuant to a clause giving the Government a unilateral right to make a 
change (e.g., an option clause) initially require only one document.
    (b) Definitization. (1) Contracting officers shall negotiate 
equitable adjustments resulting from change orders in the shortest 
practicable time.
    (2) Administrative contracting officers negotiating equitable 
adjustments by delegation under 42.302(b)(1), shall obtain the 
contracting officer's concurrence before adjusting the contract delivery 
schedule.
    (3) Contracting offices and contract administration offices, as 
appropriate, shall establish suspense systems adequate to ensure 
accurate identification and prompt definitization of unpriced change 
orders.
    (4) The contracting officer shall ensure that a cost analysis is 
made, if appropriate, under 15.404-1(c) and shall consider the 
contractor's segregable costs of the change, if available. If additional 
funds are required as a result of the change, the contracting officer 
shall secure the funds before making any adjustment to the contract.
    (5) When the contracting officer requires a field pricing review of 
requests for equitable adjustment, the contracting officer shall provide 
a list of any significant contract events which may aid in the analysis 
of the request. This list should include--
    (i) Date and dollar amount of contract award and/or modification;
    (ii) Date of submission of initial contract proposal and dollar 
amount;
    (iii) Date of alleged delays or disruptions;
    (iv) Performance dates as scheduled at date of award and/or 
modification;
    (v) Actual performance dates;
    (vi) Date entitlement to an equitable adjustment was determined or 
contracting officer decision was rendered, if applicable;
    (vii) Date of certification of the request for adjustment if 
certification is required; and
    (viii) Dates of any pertinent Government actions or other key events 
during contract performance which may have an impact on the contractor's 
request for equitable adjustment.
    (c) Complete and final equitable adjustments. To avoid subsequent 
controversies that may result from a supplemental agreement containing 
an equitable adjustment as the result of a change order, the contracting 
officer should--
    (1) Ensure that all elements of the equitable adjustment have been 
presented and resolved; and
    (2) Include, in the supplemental agreement, a release similar to the 
following:

                    CONTRACTOR'S STATEMENT OF RELEASE

    In consideration of the modification(s) agreed to herein as complete 
equitable adjustments for the Contractor's..........(describe).......... 
``proposal(s) for adjustment,'' the Contractor hereby releases the 
Government from any and all liability

[[Page 798]]

under this contract for further equitable adjustments attributable to 
such facts or circumstances giving rise to the ``proposal(s) for 
adjustment'' (except for..........)

[48 FR 42386, Sept. 19, 1983, as amended at 56 FR 15154, Apr. 15, 1991; 
62 FR 51271, Sept. 30, 1997]