Overview
FAR 43.201 establishes the authority for Contracting Officers to issue unilateral change orders within the general scope of a contract and defines the contractor’s obligation to continue performance following such changes.
Key Rules
- Unilateral Authority: Most government contracts include a "changes clause" that allows the Contracting Officer to make changes in specific areas without the contractor's prior consent, provided they are within the contract's general scope.
- Documentation: Change orders must typically be issued on Standard Form 30 (SF 30).
- Duty to Proceed: Contractors are legally required to continue performance of the contract as modified by the change order.
- Funding Limitations: The duty to proceed is limited in cost-reimbursement or incrementally funded contracts; contractors are not required to exceed the ceilings established in the Limitation of Cost or Limitation of Funds clauses.
- Emergency Procedures: In urgent or unusual circumstances, a Contracting Officer may issue a change order electronically (e.g., email) without an SF 30, provided they follow up with a formal SF 30 immediately.
Practical Implications
- Contractors must be prepared to implement changes immediately upon receipt of a unilateral order to avoid being in default, even if the final price adjustment has not yet been negotiated.
- Contractors must diligently track costs against funding limits, as the "duty to proceed" does not override the protections of the Limitation of Funds/Cost clauses.