CONS 127 Sample Questions & Answers Solved
100% Correct.
Unilateral modifications are modifications signed only by the Government's contracting
officer.
You can process a unilateral modification when the change has no substantive effect on the
contractor or the Government, the change can be made unilaterally under a specific
contract term, or a contractor's agreement is not required.
Unilateral modifications are used to do the following:
Make administrative changes (e.g., correct a typo in the accounting line or change the address of
the payment office).
Issue change orders (FAR 52.243-4, Changes)
Make change authorized by other contract clauses (FAR 52-217-7, Options and FAR 52.242-14
Suspension of Work)
Issue termination notices
One of the most widely recognized uses of a unilateral modification is as a change order.
The following are some examples:
Changes Fixed Price, FAR 52.243-1
,Changes Cost Reimbursement, FAR 52.243-2
Changes Time and Materials or Labor Hours, FAR 52.243-3
Changes, FAR 52.243-4
Changes and Changed Conditions, FAR 52.243-5
For supplemental regulatory information about contract changes, please take a moment to
read FAR subpart 43.2.
According to FAR subpart 43.2, unilateral changes are accomplished by issuing written change
orders on Standard Form 30, Amendment of Solicitation, Modification of Contract SF 30, unless
otherwise provided.
Definitization means we are defining, or making definite, exactly what the contract terms
and conditions are: specifications, price, and other terms as necessary.
A bilateral modification is a modification signed by both contracting parties: the contracting
officer and the contractor. Bilateral modifications are also known as supplemental agreements
Bilateral modifications are used to:
Make negotiated equitable adjustments — contract modifications that are fair and
reasonable to both contracting parties —to the contract resulting from the issuance of a
change order.
Definitize — supplemental agreement reflecting the resulting equitable adjustment in
contract terms, prices or costs —letter contracts.
Reflect other agreements of the contracting parties modifying the terms of contracts.
,You are administering a firm-fixed price construction contract. The contracting officer's
technical representative (COTR) informs you that the customer wants the building materials
changed from brick to sandstone block.
You verify that the customer has the additional funds to cover the difference in materials cost.
Under the authority of clause 52.243-2, Changes - Fixed Price, you issue a unilateral
modification to the contract instructing the contractor to change the type of materials.
This same clause gives the contractor the right to request an equitable adjustment in the contract
price, to fairly reimburse him for the increased cost of the sandstone block. In accordance with
the clause, the contractor has 30 days to submit his request for equitable adjustment and to
submit documentation to support his new price.
Once you and the contractor have agreed on the increased price of the contract due to the
directed contract change, you then issue a bilateral modification (supplemental agreement) to
definitize the cost of the change.
The definitization of the contract change is issued as a supplemental agreement to the contract,
which is agreed to and signed by both parties.
Whatever the basis for a modification, the authority to process the modification is always
restricted to situations in which the Government receives adequate value in exchange for
an agreement to modify a contract; what we in contracting call consideration.
, In some instances, adequate consideration will reflect a factor trade off resulting in no
increase or decrease in price, as in a no-cost contract modification.
Modifications of letter contracts are written preliminary contractual instruments that authorize
the contractor to begin work immediately, but for which the cost or price and other contract
terms and applicable clauses have yet to be determined.
Modifications of letter contracts are subject to the same policies and procedures as modifications
of definitive contracts.
The steps for processing a modification are as follows:
Step 1a: Evaluate the contractor's request for proposed contract change.
Step 1b: Evaluate the Government's request for proposed contract change.
Step 2: Determine whether to make a modification to the contract.
Step 3: Determine whether to use a unilateral or bilateral modification.
Step 4a: Modify the contract using a unilateral modification.
Step 4b: Modify the contract using a bilateral modification.
Step 5: Document the contract file and distribute the modification.
The following screens will explain in detail each step of the modification process.
A contractor may request a contract modification when the reason for a modification falls into
one of these three categories:
Circumstances beyond the control of the contractor
Due to action by the contractor
100% Correct.
Unilateral modifications are modifications signed only by the Government's contracting
officer.
You can process a unilateral modification when the change has no substantive effect on the
contractor or the Government, the change can be made unilaterally under a specific
contract term, or a contractor's agreement is not required.
Unilateral modifications are used to do the following:
Make administrative changes (e.g., correct a typo in the accounting line or change the address of
the payment office).
Issue change orders (FAR 52.243-4, Changes)
Make change authorized by other contract clauses (FAR 52-217-7, Options and FAR 52.242-14
Suspension of Work)
Issue termination notices
One of the most widely recognized uses of a unilateral modification is as a change order.
The following are some examples:
Changes Fixed Price, FAR 52.243-1
,Changes Cost Reimbursement, FAR 52.243-2
Changes Time and Materials or Labor Hours, FAR 52.243-3
Changes, FAR 52.243-4
Changes and Changed Conditions, FAR 52.243-5
For supplemental regulatory information about contract changes, please take a moment to
read FAR subpart 43.2.
According to FAR subpart 43.2, unilateral changes are accomplished by issuing written change
orders on Standard Form 30, Amendment of Solicitation, Modification of Contract SF 30, unless
otherwise provided.
Definitization means we are defining, or making definite, exactly what the contract terms
and conditions are: specifications, price, and other terms as necessary.
A bilateral modification is a modification signed by both contracting parties: the contracting
officer and the contractor. Bilateral modifications are also known as supplemental agreements
Bilateral modifications are used to:
Make negotiated equitable adjustments — contract modifications that are fair and
reasonable to both contracting parties —to the contract resulting from the issuance of a
change order.
Definitize — supplemental agreement reflecting the resulting equitable adjustment in
contract terms, prices or costs —letter contracts.
Reflect other agreements of the contracting parties modifying the terms of contracts.
,You are administering a firm-fixed price construction contract. The contracting officer's
technical representative (COTR) informs you that the customer wants the building materials
changed from brick to sandstone block.
You verify that the customer has the additional funds to cover the difference in materials cost.
Under the authority of clause 52.243-2, Changes - Fixed Price, you issue a unilateral
modification to the contract instructing the contractor to change the type of materials.
This same clause gives the contractor the right to request an equitable adjustment in the contract
price, to fairly reimburse him for the increased cost of the sandstone block. In accordance with
the clause, the contractor has 30 days to submit his request for equitable adjustment and to
submit documentation to support his new price.
Once you and the contractor have agreed on the increased price of the contract due to the
directed contract change, you then issue a bilateral modification (supplemental agreement) to
definitize the cost of the change.
The definitization of the contract change is issued as a supplemental agreement to the contract,
which is agreed to and signed by both parties.
Whatever the basis for a modification, the authority to process the modification is always
restricted to situations in which the Government receives adequate value in exchange for
an agreement to modify a contract; what we in contracting call consideration.
, In some instances, adequate consideration will reflect a factor trade off resulting in no
increase or decrease in price, as in a no-cost contract modification.
Modifications of letter contracts are written preliminary contractual instruments that authorize
the contractor to begin work immediately, but for which the cost or price and other contract
terms and applicable clauses have yet to be determined.
Modifications of letter contracts are subject to the same policies and procedures as modifications
of definitive contracts.
The steps for processing a modification are as follows:
Step 1a: Evaluate the contractor's request for proposed contract change.
Step 1b: Evaluate the Government's request for proposed contract change.
Step 2: Determine whether to make a modification to the contract.
Step 3: Determine whether to use a unilateral or bilateral modification.
Step 4a: Modify the contract using a unilateral modification.
Step 4b: Modify the contract using a bilateral modification.
Step 5: Document the contract file and distribute the modification.
The following screens will explain in detail each step of the modification process.
A contractor may request a contract modification when the reason for a modification falls into
one of these three categories:
Circumstances beyond the control of the contractor
Due to action by the contractor
