Overview
FAR 43.101 defines critical terms for contract modifications, specifically clarifying what constitutes an "administrative change" and establishing precise rules for determining the "effective date" of various contract actions.
Key Rules
- Administrative Changes: These are unilateral, written changes that do not alter the substantive rights of the parties, such as updating a paying office or changing appropriation data.
- Effective Date for Unilateral Actions: For solicitation amendments, change orders, or administrative changes, the effective date is the date the document is issued.
- Effective Date for Bilateral Actions: For supplemental agreements, the effective date is the specific date agreed upon by both the government and the contractor.
- Effective Date for Terminations:
- Confirming notices of termination or letter determinations carry the effective date of the original notice or letter.
- Modifications converting a termination for default to a termination for convenience retain the effective date of the original termination for default.
Practical Implications
- Contractors do not need to sign administrative changes, as they are unilateral and do not affect contract requirements or compensation.
- Precise effective dates are critical for determining when performance obligations begin, when costs become allowable, or when the statute of limitations starts for potential claims.