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    The Period of Performance expired in FY 2011 or prior. Some contracts have unliquidated obligations but most don't. Due diligence to obtain a Release of Claims resulted in the contractor's reply that he was submitting a Request for Equitable Adjustment REA) and will not provide a Release of Claims or submit a final invoice if applicable. How long must the Government wait for the contractor to submit his REA? Is there any authority under which the KO can issue a letter to the contractor setting a deadline for submission of the REA, while of course including the contractor's rights to submit a claim to the ASBCA or the US Court of Federal Claims? Office of Council cannot reach a consensus so we cannot take action. My urgency is to deobligate funds so they can be used prior to expiration.


    Answer

    There is no Black Letter law requiring the contractor to submit an REA by a certain time.  However, depending on any contract clauses included in the contract, the contractor may be required to submit notification of changes, and an REA by a predetermined time. For example, FAR clause 52.243-7, if incorporated, requires the contractor to notify the government within a certain number of (negotiated) days of the estimated adjustment to contract price for a change by the government. Also, the changes clause at FAR 52.243-1 requires the contractor to "assert its right to an adjustment within 30 days from the date of receipt of the written order."  Notwithstanding these requirements, the contractor has up to six years to submit a claim as well (See FAR 33.206.

    Ultimately, the contracting officer will need to make the determination along with the recommendation of counsel regarding the deobligation of funds for these types of cases. 

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