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section43.205

Contract clauses

Overview

This section prescribes the specific "Changes" clauses that Contracting Officers must include in solicitations and contracts to establish the government's right to modify the contract scope. The selection of the appropriate clause and its associated "Alternate" is determined by the contract funding type (e.g., fixed-price vs. cost-reimbursement) and the nature of the requirement (e.g., supplies, services, or construction).

Key Rules

  • Fixed-Price Contracts (52.243-1): Mandatory for fixed-price supply contracts, with five specific Alternates used to tailor the clause for services, architect-engineer services, transportation, or research and development (R&D).
  • Cost-Reimbursement Contracts (52.243-2): Mandatory for cost-reimbursement supply contracts, with Alternates provided for services, construction, and R&D.
  • Time-and-Materials (T&M) or Labor-Hour (52.243-3): Required for all T&M and Labor-Hour contracts; notably, the Contracting Officer is permitted to modify the standard 30-day notification period for equitable adjustment claims.
  • Construction and Demolition:
    • Use 52.243-4 for dismantling, demolition, or fixed-price construction exceeding the Simplified Acquisition Threshold (SAT).
    • Use 52.243-5 for construction contracts at or below the SAT.
  • Change Order Accounting (52.243-6): An optional clause used for complex projects where numerous changes are expected, requiring the contractor to maintain separate cost accounting for work performed under a change order.

Practical Implications

  • Tailored Authority: The specific "Alternate" selected dictates exactly what the government can change unilaterally; for example, in a service contract, the government’s authority focuses on the description of services and place of performance rather than physical supply specifications.
  • Administrative Compliance: Contractors must identify which clause is present to understand their specific notification timelines and documentation requirements to protect their right to an equitable adjustment.

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