Since the REA will be rejected in its entirety and without negotiations, what is the correct way, or the best way, to document the rejection of the REA?
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I'm unaware of any agency-level prescribed format for the contracting officer's documentation of his/her rejection of an REA. The clause at DFARS 252.243-7002 (Requests for Equitable Adjustment) requires "full disclosure of all relevant facts" in the REA, so the contracting officer's determination should point out if relevant facts were missing from the submission, or if any facts that were submitted were deemed not relevant. The determination should explain the specific logic the contracting officer used to deny the request, in light of the relevant facts (or lack thereof). Use plain English so an impartial reader can clearly follow the reason that the REA was not accepted. And since a denied REA has the potential to lead to a claim, be sure to first run your determination past your organization's legal counsel.