CON 1400v Managing Change
1.1 Managing Change
Narration: Hello and welcome to the Managing Changes segment of CON1400, Contract
Administration.
1.2 Objectives
Narration: During this segment you will expand your knowledge and understanding of
customary actions taken during the contract administration phase of contract fundamentals.
This segment provides for improving your fundamental understanding of how to summarize
the characteristics of managing changes during contract performance.
You will do this by learning how to identify the policies for preparing and processing contract
modifications, identify procedures for preparing and processing contract modifications, and
identify thresholds for certified cost and pricing information pertaining to contract pricing
modifications. Using scenarios will reinforce your comprehension of this knowledge.
Let’s dig in!
1.3 What is Ordered Does Not Always Equate to the Final Outcome
Narration: It would be great if Government contracts never required any changes after the
contract was awarded. But of course the only constant is change.
Circumstances dictate that it is often necessary to change contract requirements. When this
happens the Government must be ready to facilitate the necessary changes. A large part of
contract administration activity is devoted to adapting to changing circumstances and
managing those changes.
That would be easy enough before contract award, but what about post-award?
Let’s find out!
1.4 What is a contract modification?
Narration: In simple terms, a contract modification, or contract mod, is any written change
to the terms of a contract.
, Also, it’s important to know that contracting officers acting within the scope of their authority
are authorized to execute contract modifications.
Great, but that doesn’t exactly answer the question now does it?
What is contract modification in terms of function and contract administration?
Let’s see what the policy says.
1.5 What is the Governments policy?
Narration: The policies and procedures for preparing and processing contract modifications
for all types of contracts, including construction and A-E contracts, are found in FAR part 43
and DFARS part 243.
There are two types of contract modifications: Bilateral, and Unilateral.
Bilateral modification is known as a supplemental agreement; defined in FAR 2.101 as “…a
contract modification that is accomplished by the mutual action of the parties.” These
modifications are used to make negotiated equitable adjustments following the issuance of
a change order. Also, bilateral modifications may be used to define letter contracts or to
reflect other agreements made by the parties that modify the terms of the contract.
Both the Contractor and the contracting officer sign bilateral modifications.
Unilateral modifications are modifications signed by the contracting officer. Unilateral
modification may be used to make administrative changes.
Administrative change you say?
This means a written unilateral contract change that does not affect the substantive rights of
the parties. For example, a change in the payment office or the appropriation data.
Right about now you’re probably saying to yourself… substantive rights? What are those?
Substantive rights are those that create rules and duties, such as the terms and conditions of
the contract.
You will find more information about Administrative Change in FAR 43.101.
Unilateral modifications may also be used to issue change orders and termination notices,
as well as make changes authorized by clauses other than a changes clause.
What are examples of changes authorized by clauses other than a changes clause that come
to mind?
Did you come up with changes under a property clause, options clauses, suspension of work
clause, and the stop-work clause? Those are good examples!
1.1 Managing Change
Narration: Hello and welcome to the Managing Changes segment of CON1400, Contract
Administration.
1.2 Objectives
Narration: During this segment you will expand your knowledge and understanding of
customary actions taken during the contract administration phase of contract fundamentals.
This segment provides for improving your fundamental understanding of how to summarize
the characteristics of managing changes during contract performance.
You will do this by learning how to identify the policies for preparing and processing contract
modifications, identify procedures for preparing and processing contract modifications, and
identify thresholds for certified cost and pricing information pertaining to contract pricing
modifications. Using scenarios will reinforce your comprehension of this knowledge.
Let’s dig in!
1.3 What is Ordered Does Not Always Equate to the Final Outcome
Narration: It would be great if Government contracts never required any changes after the
contract was awarded. But of course the only constant is change.
Circumstances dictate that it is often necessary to change contract requirements. When this
happens the Government must be ready to facilitate the necessary changes. A large part of
contract administration activity is devoted to adapting to changing circumstances and
managing those changes.
That would be easy enough before contract award, but what about post-award?
Let’s find out!
1.4 What is a contract modification?
Narration: In simple terms, a contract modification, or contract mod, is any written change
to the terms of a contract.
, Also, it’s important to know that contracting officers acting within the scope of their authority
are authorized to execute contract modifications.
Great, but that doesn’t exactly answer the question now does it?
What is contract modification in terms of function and contract administration?
Let’s see what the policy says.
1.5 What is the Governments policy?
Narration: The policies and procedures for preparing and processing contract modifications
for all types of contracts, including construction and A-E contracts, are found in FAR part 43
and DFARS part 243.
There are two types of contract modifications: Bilateral, and Unilateral.
Bilateral modification is known as a supplemental agreement; defined in FAR 2.101 as “…a
contract modification that is accomplished by the mutual action of the parties.” These
modifications are used to make negotiated equitable adjustments following the issuance of
a change order. Also, bilateral modifications may be used to define letter contracts or to
reflect other agreements made by the parties that modify the terms of the contract.
Both the Contractor and the contracting officer sign bilateral modifications.
Unilateral modifications are modifications signed by the contracting officer. Unilateral
modification may be used to make administrative changes.
Administrative change you say?
This means a written unilateral contract change that does not affect the substantive rights of
the parties. For example, a change in the payment office or the appropriation data.
Right about now you’re probably saying to yourself… substantive rights? What are those?
Substantive rights are those that create rules and duties, such as the terms and conditions of
the contract.
You will find more information about Administrative Change in FAR 43.101.
Unilateral modifications may also be used to issue change orders and termination notices,
as well as make changes authorized by clauses other than a changes clause.
What are examples of changes authorized by clauses other than a changes clause that come
to mind?
Did you come up with changes under a property clause, options clauses, suspension of work
clause, and the stop-work clause? Those are good examples!
