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  • Question

    Can the CO cite the Changes Clause 52.243-1 Changes-Fixed-Price to modify the award type from FFP to T&M? If not, would issuing a limited sources justification under FAR 8.405-6 be a better approach?


    Answer

    Bottom Line Up Front:

    1) FAR 52.243-1 Changes-Fixed-Price clause can NOT (emphasis added) be used to change an order from FFP to Time and Materials. Paragraph (a) of the clause is very, very specific (again, emphasis added). That includes any of the Alternates as well. Additionally, a Time and Material contract would have a different changes clause; FAR 52.243-3 Changes-Time-and-Materials or Labor-Hours. There is no FAR clause that specifically cites the authority to change contract type after award.

    2) But that does not mean it can’t be done. Assuming it would not impact competition and it was decided to be within the general scope of the contract. The modification would be done reflecting “agreement of the parties modifying the terms of the order”. See FAR 43.103(a)(3), but do not use that citation on the SF30.

    A great discussion with the question submitter revealed this was a single award BPA, limited sources justification previously accomplished and this change would pass the scope determination test based on the facts of this acquisition. Additionally, the OF 347 was used and not the SF1449.

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