Overview
This section establishes that only authorized Contracting Officers have the legal power to modify contracts and sets the standard that modifications should be priced before execution whenever possible.
Key Rules
- Exclusive Authority: Only Contracting Officers (COs) acting within the scope of their authority are empowered to execute contract modifications; all other Government personnel lack this power.
- Prohibitions on Non-CO Personnel: Non-CO personnel are expressly forbidden from executing modifications, acting in a way that implies they have the authority to bind the Government, or directing contractors to perform work that requires a modification.
- Pricing Priority: Modifications should be fully priced before they are executed, provided this does not harm the Government's interests.
- Ceiling Prices: If a modification likely involves a significant cost increase and full negotiations cannot happen immediately, the CO must negotiate at least a ceiling price unless it is impractical to do so.
Practical Implications
- Contractors must exercise caution to avoid "unauthorized commitments" by ensuring they only accept direction for scope changes from a warranted Contracting Officer.
- The policy protects the Government's fiscal position by requiring price certainty—or at least a maximum cost limit—before work begins on a contract change.