DFARS Part 43

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Defense Federal Acquisition Regulation Supplement
Part 243--Contract Modifications

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

PART 243 CONTRACT MODIFICATION

SUBPART 243.1--GENERAL

243.102 Policy.

243.105 Availability of funds.

243.107 Contract clause.
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 contractor 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.

[see AFAC 92-49,B1]
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--

SUBPART 243.2--CHANGE ORDERS

243.204 Administration.

243.204-70 Certification of requests for equitable adjustment.

(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 Contract clauses.

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.

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