TABLE OF CONTENTS
SUBPART 243.1--GENERAL
243.102 Policy.
243.105 Availability of funds.
243.107 Contract clause.
243.107-70 Notification of substantial impact on employment.
243.170 Identification of foreign military sale (FMS) requirements.
243.171 Obligation or deobligation of funds.
SUBPART 243.2--CHANGE ORDERS
243.204 Administration.
243.204-70 Certification of requests for equitable adjustment.
243.205 Contract clauses.
243.205-70 Engineering change proposals.
243.205-71 Pricing of contract modifications.
243.205-72 Requests for equitable adjustment.
(b)(i) See Subpart 217.74 for limitations on issuing undefinitized contract actions.
(ii) Modifications of letter contracts are subject to the same policies and procedures as modifications of definitive contracts.
243.105 Availability of funds.
(a)(i) 10 U.S.C. 2405 prohibits adjustments in price under a shipbuilding contract entered into after December 7, 1983, for a claim, request for equitable adjustment, or demand for payment under the contract, arising out of events occurring more than 18 months before submission of the claim, request, or demand.
(ii) Section 558 of the National Defense Authorization Act for Fiscal Year 1995 (Pub. L. 103-337) provides that no funds available to DoD may be provided by contract or contract modification, nor may contract payments be made, to an institution of higher education that has a policy of denying or that effectively prevents the Secretary of Defense from obtaining for military recruiting purposes-
(A) Entry to campuses or access to students on campuses; or
(B) Access to directory information pertaining to students (see 209.470).
(iii) Pursuant to 10 U.S.C. 983, no funds may be obligated by contract or contract modification to an institution of higher education that has an anti-ROTC policy (see 209.470).
For DoD, the "specifically authorized representative" (SAR) referred to in the clause at FAR 52.243-7, Notification of Changes, is a "contracting officer's representative" as defined in 202.101 and as discussed in Subpart 201.6.
243.107-70 Notification of substantial impact on employment.
The Secretary of Defense is required to notify the Secretary of Labor if a modification of a major defense contract or subcontract will have a substantial impact on employment. The clause prescribed at 249.7002(c) requires that the contractor notify the contracting officer when a contract modification will have a substantial impact on employment.
243.170 Identification of foreign military sale (FMS) requirements.
Identify contract modifications that add FMS requirements by clearly marking "FMS Requirement" on the front. Within the modification, cite each FMS case identifier code by line/subline item number, e.g., FMS Case Identifier GY-D-DCA.
243.171 Obligation or deobligation of funds.
For each contract modification, the contracting officer shall identify, in Section G, Contract Administration Data (Uniform Contract Format), or the contract schedule (Simplified Contract Format), under the heading "Summary for the Payment Office," information sufficient to permit the paying office to readily identify the changes for each contract line and subline item as follows-
(a) The amount of funds obligated by prior contract actions, to include the total cost and fee if a cost-type contract; the target fee at time of contract award if a cost-plus-incentive-fee contract; the base fee if a cost-plus-award-fee contract; or the target price and target profit if a fixed-price incentive contract;
(b) The amount of funds obligated or deobligated by the instant modification, categorized by the types of contracts specified in paragraph (a) of this section; and
(c) The total cumulative amount of obligated or deobligated funds, categorized by the types of contracts specified in paragraph (a) of this section.
(b) Definitization. The administrative contracting officer (ACO) must review change orders issued by the contracting officer to ensure compatibility with the status of performance. If the contractor has progressed beyond the effective point specified in the change order, the ACO must determine the earliest practical point at which the change order could be made effective and advise the contracting officer. The contracting officer must issue another change order to correct, revise, or supersede the first change order, then definitize by supplemental agreement citing both change orders.
243.204-70 Certification of requests for equitable adjustment.
(a) A request for equitable adjustment to contract terms that exceeds the simplified acquisition threshold may not be paid unless the contractor certifies the request in accordance with the clause at 252.243-7002.
(b) The aggregate amount of both the increased and decreased costs shall be used in determining when the dollar threshold requiring certification is met (see example in FAR 15.403-4(a)(1)(iii)).
(c) The certification required by 10 U.S.C. 2410(a), as implemented in the clause at 252.243-7002, is different from the certification required by the Contract Disputes Act of 1978 (41 U.S.C. 605(c)). If the contractor has certified a request for equitable adjustment in accordance with 10 U.S.C. 2410(a), and desires to convert the request to a claim under the Contract Disputes Act, the contractor shall certify the claim in accordance with FAR Subpart 33.2.
243.205-70 Engineering change proposals.
Engineering changes can originate with either the contractor or the Government. In either case, the Government will need detailed information from the contractor for evaluation of the technical, cost, and schedule effects of implementing the change. When the contracting officer wants this information submitted in the format prescribed by MIL-STD-973, use the clause at 252.243-7000, Engineering Change Proposals. Use the clause with its Alternate I, when appropriate, to discourage submission of a large number of small dollar, contractor originated engineering change proposals.
243.205-71 Pricing of contract modifications.
Use the clause at 252.243-7001, Pricing of Contract Modifications, in solicitations and contracts when anticipating and using a fixed price type contract.
243.205-72 Requests for equitable adjustment.
Use the clause at 252.243-7002, Requests for Equitable Adjustment, in solicitations and contracts estimated to exceed the simplified acquisition threshold.