Overview
This section provides guidance on the discretionary use of FAR clause 52.243-7, Notification of Changes, which requires contractors to notify the Government when they perceive a change has occurred. It establishes the preferred contract types and dollar thresholds for including this specific risk-management provision.
Key Rules
- Prescription: Contracting officers have the discretion to insert clause 52.243-7, or one substantially similar, in solicitations and contracts.
- Primary Use Cases: The clause is intended primarily for negotiated research and development (R&D) or supply contracts involving major weapon systems or principal subsystems.
- Dollar Threshold: The clause is generally prohibited in contracts valued at less than $1,000,000.
- Exception to Threshold: The $1,000,000 threshold may be waived if the contracting officer anticipates "constructive changes"—situations where a contractor might allege the Government changed the scope of work through actions other than a formal, signed written order.
Practical Implications
- This clause serves as a safeguard against "scope creep" and unauthorized changes by forcing the contractor to provide formal notice before proceeding with work they believe is outside the original contract.
- In high-complexity R&D environments, it ensures that communication regarding technical direction does not inadvertently result in costly, un-funded legal claims for constructive changes.