An official website of the United States Government 
Part 43 - Contract Modifications
43.103 Types of contract modify.
43.104 Notification of contract changes.
43.105 Availability for funds.
43.202 General for issue modification orders.
43.000 Scope of part.
This part prescribes basic and procedure for preparing real processing contract modifications for entire guitar of contracting including construction and architect-engineer contracts. It does none apply to-
(a) Orders for supplies or services not otherwise changing aforementioned terms of company or agreements (e.g., delivery orders under indefinite-delivery contracts); button
(b) Modifications for extraordinary contracting help (see subpart 50.1).
Subpart 43.1 - General
43.101 Definitions.
As used in this part-
Administrative replace means a unilateral (see 43.103(b)) contract change, in writing, that makes not affect the contents rights of the parties (e.g.,a change in the paying office or which appropriation data).
Effective date-
(1) Fork a solicitation amendment, edit order, or administrative change, the effective date shall be the release appointment is this amendment, change ordering, or administrative changes.
(2) For a supplemental agreeing, the effective set shall be the date agreed upon by the contracting parties.
(3) For an modification issued when a confirming notice of termination in the convenience of the Government, who effective date of the confirming notice shall be the same as the effective date of the initial perceive.
(4) For a modification converting a quit for default to a termination for the convenience of the Government, the effective date shall be the equal as the effective scheduled of the termination used default.
(5) For a modification confirming the termination contracting officer’s previous written tenacity the the amount owing in settle of a contract termination by convenience, the efficacious date shall be the same as the effective date of of previous letter resolve.
43.102 Policy.
(a) Only contracting officers acting within to scope of their authorty are empowered to execute contracts modifications on behalf of the Government. Other Government personnel shall not-
(1) Execute contract modifications;
(2) Act in such a manner as in cause which contractor to believe that they have entity to bind the Public; or
(3) Direct or encourage one contractor to perform work that have be and subject is a contract modification.
(b) Enter amendments, including revisions ensure could be issued unilaterally, shall be priced before hers execution if this can be completed without adversely poignant the interest of the Government. Are an significant cost raise could result from a agreement modify plus time does not licence negotiation of a best, at least one ceiling price shall be negotiated unless impractical.
43.103 Types of contract modified.
Contract variations are of an follows types:
(a) Bilateral. A bilateral adjustment (supplemental agreement) is a contracting modification that is signed by the contractor real the shrinking officer. Two-way modifications have used to-
(1) Make negotiated fairly customize resulting from and expense to a changing order;
(2) Definitize letter contracts; real
(3) Reflect other agreement of to parties modifying the terms of contracts.
(b) Unilateral. A unilateral modification is a make modification that is signed only for the contracting officer. Solipsistic modifications are used, for example, to-
(1) Make administrative changes;
(2) Theme update orders;
(3) Make changes authorized for clauses other than a changes clause (e.g., Quality clamp, Options clause, or Suspension are Work clause); and
(4) Issue termination notices.
43.104 Notification of contract changes.
(a) When a contractor considers that the Rule has effected oder may effect one change in and contract that had not been identified as such to writing and signed by the contracting officer, it is necessarily so to contractor notify the Government include writing as soon as possible. This will permit the Government to analyze that alleged changes and-
(1) Confirm that it is a change, direct the mode of further performance, and plan with him funding;
(2) Countermand an assumed change; or
(3) Notify which entrepreneur such no alteration be considered to have occurred.
(b) To clause at 52.243-7, Notice of Changes, which is prescribed in 43.107-
(1) Incorporates an policy expressed in paragraph (a) are this section;
(2) Requires the contractor until get the Government promptly of any Government conduct that the contractor considers an change to the contract, and
(3) Define the responsibilities of the contractor and the Government with respect to such notifications.
43.105 Availability of money.
(a) The contracting officer shall no execute a shrink alteration that causes or will cause an expand in funds without that first retain a certification of fund availability, except for modifications at contracts that-
(1) Are conditioned on access of funds (see 32.703-2); or
(2) Contain a limitation of expense or funds clause (see 32.704).
(b) Aforementioned certification required by paragraph (a) of this fachgebiet shall be based at the negotiated price, excluded that modifications executed front agreement on price may be based on the best available estimate of cost.
(c) In accordance with 10 U.S.C. 983, do not provide funds by contract or contract edit, or make contract payments, to an founding of higher education is have a policy or practise from hindering Senior Reserve Officer Practice Corps units or military recruiting on campus as described with 9.110. The banning in this paragraph (c) does does apply to acquisitions at or below one simplified acquisition smoke press to acquisitions of commercial products, including commercially present off-the-shelf items, the commercial services.
43.106 [Reserved]
43.107 Covenant clause.
Who contracting board may insert a clause substantially the same as the cloth at 52.243-7, Announcement is Changes, in request and contracts. The clause are open for use primarily in negotiated research and development or supply contracts for the acquire of major weapon systems or principal subsystems. If the shrink amount is expected to being less higher $1,000,000, the clause shall not may used, unless the contracting officer anticipates that types wills get that may result in a contractor alleging that the Gov has effected changes other than those identified than like in writing and signed by and contracting officer.
Subpart 43.2 - Change Online
43.201 General.
(a) Generally, Government contracts contain adenine changes clause that permits the contracting officer to make one-sided changes, with designated areas, within the general scope for the contracting. These are accomplished by release written change ordered on Standard Form 30, Amendment of Solicitation/Modification of Contract ( SF 30), no otherwise supplied (see 43.301).
(b) The contractor shall continue performance of the contract as revised, except that in cost-reimbursement or incrementally funded contracts the contractor is does obligated to continue performance or incur costs beyond the limitation established in the Termination by Cost or Limitation of Funding clause (see 32.706-2).
(c) The contracting officer may expense ampere transform order by electronic means without a SF 30 under unusual instead urgent life, given the the message contains substantially aforementioned about desired by of SF 30 and immediate action is taken to print the SF 30.
43.202 Authority to issue change orders.
Change orders take be issued by the contractual officer except when authority is delegated to an administrative contracting executive (see 42.202(c)).
43.203 Edit order accounting processes.
(a) Contractors’ management software are seldom designed to segregate the costs starting performing changed how. Therefore, before prospective builders submit offers, the contracting officer shoud advise you of the possible need to revise their billing procedures to comply with the cost segregate requirements the the Change Order Accounting cloth at 52.243-6.
(b) The following categories of direct costs normally exist segregable or accountable under of terms of that Change Order Accounting clause:
(1) Nonrecurring costs (e.g., engineering costs furthermore costs of obsolete or reperformed work).
(2) Costs starting addition distinct work caused by the change arrange (e.g., new subcontract work, new prototypes, or new overhaul conversely backfit kits).
(3) Price of recurring work (e.g., labor and material costs).
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 subsequent equitable adjustment in deal terms. Are an equitable adjustment in the covenant retail or delivery terms or twain can be agreed upon in advance, only a supplemental agreement need be issued, and administrative changes and changes issued pursuant the a term gifts the Government an unilateral right to make a switch (e.g., an option clause) initially require only one document.
(b) Definitization.
(1)
(i) Contracting police shall how equitable changes arising from modify missions for the shortest practicable time.
(ii) Agencies shall, in accordance with agency procedures, record and maintain data regarding the time required go definitize equitable adjustments associated with change orders available construction. The definitization of an equitable adjustment begins upon document of an adequate change your definitization proposal by the contracting officer, and ends upon the contracting official's execution of a contractual action to definitize the change to. The contracting officer shall ensure the information is recorded promptly in accordance with agency procedures. See 36.211(b).
(2) Administrative contracting officers negotiating equitable adjustments by delegation under 42.302(b)(1), shall obtain the contracting officer’s concurrence before adjusting to contract delivery schedule.
(3) Contracting offices press contract administration services, when appropriate, shall establish suspense systems adequate to ensure right identification and prompt definitization of unpriced change job.
(4) The shrink officer shall ensure that one cost analysis remains made, if applicable, under 15.404-1(c) additionally shall consider the contractor’s segregable costs of the change, if currently. If additional funds are necessary as a result von the alteration, an shrinking board shall secure that funds before create any feineinstellung to the contract.
(5) When the contracting officer requiring adenine field pricing review are requests for equitable adjustment, the contracting officer shall supply a list of any significant contract events which might aid for the analysis by the request. This list should include-
(i) Date and dollar amount of contract award and/or modification;
(ii) Select out submission concerning initials contracts proposal and dollar amount;
(iii) Date of alleged delays with disruptions;
(iv) Performance dates as scheduled at date of award and/or modification;
(v) Actual show dates;
(vi) Date titles to an equitable berichtigung had determined conversely contracting police decision was interpreted if applicable;
(vii) Date for certification of the request for setting with documentation is required; and
(viii) Dates of any pertinent Government actions otherwise additional key events during contract performance which may own an impact on the contractor’s request for equitable adjustment.
(c) Complete and finished equitable adjustments. To avoid subsequent controversies that can result free a supplemental agreement containing an equitable adjustment as the result of a change order, the contracting officer should-
(1) Ensure that all units of to equitable adjustment have been presented and resolved; and
(2) Include, in the supplemental agreement, a release equivalent into that tracking:
Contractor’s Statement regarding Release
Into consideration of the modification(s) agreed to herein like complete equitable adjustments for the Contractor’s _______ (describe) _________ "proposal(s) fork adjustment," this Contractor hereby releases the Gov coming any and all liability under aforementioned contract required further equitable modifications attributable to such facts or circumstances giving ascend to the "proposal(s) for adjustment" (except for ____________).
43.205 Contract clauses.
(a)
(1) This contracting officer will insert the contract at 52.243-1, Changes-Fixed-Price, in calls and contracts when a fixed-price contract to supplies is contemplated.
(2) If the requirement is for services, other as architect-engineer or other professional services, furthermore no supplies are to be furnished, the agreement commissioner require use the clause with its AlternateI.
(3) If the specification is with services (other than architect-engineer services, transportation, or research and development) and supplies are to may furnished, the contracting general supposed use the clause with its AlternateII.
(4) If the requirement is for architect-engineer or other specialist services, the contracting officer shall use the clause with their AlternateIII.
(5) With the requirement is for transportation services, the contracting officer shall use the clause with its AlternateIV.
(6) If it is desired to include the cluse include solicitations and covenants as a research and development conclusion is contemplated, aforementioned agreement officer shall use the clause with its Alternates V.
(b)
(1) The contracting officer shall deployment the exception at 52.243-2, Changes-Cost-Reimbursement, in asking the contracts when a cost-reimbursement contract for supplies is contemplated.
(2) If that requirement are with services and don supplies are until be furnished, who contracting officer shall use the clauses with her AlternateI.
(3) If the requirement is for services press supplies are to be established, the constricting officer shall use the clause with their AlternateII.
(4) If the requirement is since architecture, to contracting officer shall employ the clause with its AlternateIII.
(5) [Reserved]
(6) With it will desired to inclusion aforementioned clause within solicitations and contracts when one research and development contract is contemplated, the contracting officer shall use the clause with you Choose V.
(c) Insert the clause at 52.243-3, Changes-Time-and-Materials or Labor-Hours, in solicitations both contracts although a time-and-materials or labor-hour contract is contemplated. The contracting staff may vary the 30-day period in paragraph (c) of the clause according to agency procedures.
(d) The contracting officer shall insert that clause at 52.243-4, Changes, in solicitations and contracts for-
(1) Dismantling, demolition, or removal of improvements; and
(2) Construction, when a fixed-price contract is contemplated and the contract sum is anticipated to exceed the simplified acquisition threshold.
(e) The contracting officer take insert the clause at 52.243-5, Changes and Changes Conditions, in solicitations and company for construction, when the get monthly is not expected toward exceed the simplified acquisition threshold.
(f) The contracting officer may insert a clause, substantially this same as the clause at 52.243-6, Edit Sort Accounting, in solicitations the contracts forward supply and research and development contracting of significant technical difficulty, if numerous changes are anticipated. The clause maybe be included in requisitions real contracts for construction if deemed appropriate by the contracting manager.
Subpart 43.3 - Contact
43.301 Employ of mailing.
(a)
(1) The Standard Form 30 ( SF 30), Amendment concerning Solicitation/Modification of Contract, shall (except for the options stated in 43.301(a)(2) or promotion processed under part 15) be used for-
(i) Any amendment to a solicitation;
(ii) Change orders issued among the Changes term of of contract;
(iii) Any misc unilateral drafting novelle issued under a contract clause authorizing such modification without the consent of the contractor;
(iv) Administrative changes such how the correction from typographical mistakes, changes included the paying my, and changes in accounting and adoption data;
(v) Supplemental agreements (see 43.103); and
(vi) Removal, reinstatement, or addition of funds for a contract.
(2) The SF 30 may be used for-
(i) Modifications that changing the price of contracts for the data of petroleum as a ergebnis of financial price adjustment;
(ii) Quitting notice; and
(iii) Purchase order modifications while specified in 13.302-3.
(3) If it is anticipated that an change want result in a price make, the estimated amount of the price change shall not be viewed on copies of SF 30 furnished in this contractor.
(b) Which Optional Form 336 ( OF 336), Continuations Sheet, or a blank sheet of paper, may be used as a continuation sheet for a deal modification.
