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  • Question

    Can the contract be modified to increase labor cost by 200% without competition? There is no change in scope.


    Answer

    The GAO has repeatedly said that "within scope" determinations are done on a case by case basis, by the contracting officer in her or his best judgment. The general rule is was the increase contemplated or forseeable by the parties at contract inception, and was there some mutual identification and/or realization by the parties that there could be increased labor costs down the line of contract performance.
     
    Please consult with your contracting officer to answer your question.

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