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  • Question

    Is a modification required to show this reduction in the fixed fee amount due to the failure of the contractor to provide the level of effort required by the contract or does the contract stand as awarded and other documentation to the contract file provides explanation for the reduction?


    Answer

    FAR 43.101 defines, in part, an administrative change as a unilateral change that does not affect the the substantive rights of the parties. It uses as an example a change in appropriation data. Your proposed change fits that definition. Even if it did not, it is important to track the administration of the contract not only for audit purposes, but for contract closure tracking.

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