Part 543—Contract Modifications

Subpart 543.1—General

543.102  Policy.

(a) Treat as a new procurement a modification for work outside the scope of a contract. See requirements in each of the following:

(1) FAR Subpart 6.3 for justifications and approvals.

(2) FAR Subpart 5.2 and Subpart 505.2 for synopsizing.

(b) Execute a supplemental agreement to issue the modification.

543.170  Changes in designated subcontractors, inspection and/or production points.

(a) Before executing a contract modification authorizing changes in either a designated subcontractor or inspection or production point, you must consider the impact of the change on the contractor’s ability to satisfy contract requirements. Use the same standards used to determine that the contractor was responsible (see FAR 9.1 and 509.1).

(b) The modification must identify the nature of the change and the effective date. In establishing an effective date, consider the time necessary for effected offices to take required actions. A good practice is to provide that orders placed before the effective date will remain in effect as written.

Subpart 543.2—Change Orders

543.202  Authority to issue change orders.

This section applies to construction contracts.

(a) COR authority. For a construction contract, you may authorize a warranted COR to issue change orders. Authorization must be in writing, on a contract-by-contract basis, and must identify any limitations. For example, identify dollar limitations or specify that authority is only valid in emergency situations.

(b) Additional restrictions. Provide the following instruction to the COR as part of the written authorization:

(1) For any single change order, preferred practice in GSA is that the COR should avoid personally performing all of these actions:

(i) Determining the need for a change.

(ii) Preparing the Government’s cost estimate.

(iii) Conducting negotiations.

(iv) Issuing the change order.

(v) Inspecting the work.

(2) For a price-to-be-determined-later change order, if the COR personally performs all the actions in paragraph (1) of this section, the change order must be reviewed by a designated official before issuance or definitization.

(c) Review change orders. For price-to-be-determined-later change orders when the COR personally performs all actions, you must either personally review each change order or designate a capable official to perform the review. Consider designating the COR’s immediate supervisor or a higher-level official within the organization. Avoid designating more than one official to review change orders issued under an individual contract.

(d) Coordination of change orders. Issue change orders only after coordination, as appropriate, with quality control, finance, audit or other technical personnel.

543.205  Contract clauses.

(a) Construction.

(1) Insert 552.243-70, Pricing of Adjustments, in solicitations and contracts if the contract:

(i) Amount is expected to exceed the simplified acquisition threshold.

(ii) Will be other than a cost type.

(2) Insert 552.243-71, Equitable Adjustments, in solicitations and contracts containing FAR 52.243-4.

(b) Multiple award schedules (MAS). Insert 552.243-72, Modifications (Multiple Award Schedule), in MAS solicitations and contracts issued by GSA. For solicitations and contracts issued under Federal Supply Classification (FSC) 65, you may use the clause with its Alternate I for products ordered from authorized Prime Vendors.