Is this correct? Shouldn't the Contract Value remain the original value and only the funding be decreased?
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The guidance from the DFARS PGI is as follows for obligating and de-obligating funds:
PGI 243.171 Obligation or deobligation of funds.
The contracting officer shall include sufficient information in each contract modification to permit the paying office to readily identify the changes for each contract line and subline item.
(1) Include the information under the heading “Summary for the Payment Office” in—
(i) Section G, Contract Administration Data (Uniform Contract Format); or
(ii) The contract schedule (Simplified Contract Format).
(2) The information normally should contain—
(i) The amount of funds obligated by prior contract actions, to include—
(A) The total cost and fee if a cost-type contract;
(B) The target fee at time of contract award if a cost-plus-incentive-fee contract;
(C) The base fee if a cost-plus-award-fee contract; or
(D) The target price and target profit if a fixed-price incentive contract;
(ii) The amount of funds obligated or deobligated by the instant modification, categorized by the types of contracts specified in paragraph (2)(i) of this section; and
(iii) The total cumulative amount of obligated or deobligated funds, categorized by the types of contracts specified in paragraph (2)(i) of this section.