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  • Question

    Can I now add the clause FAR 52.216-4, Economic Price Adjustment (EPA) to the order?


    Answer

    You should consider re-competing the contract. A significant change in contract type from firm-fixed-price to fixed-price with economic price adjustment gives the current contractor a better price. Soliciting a FP-EPA type vs. FFP would have affected the competitive field before award. Proceeding with this change could invite a protest from another offeror. It's essentially like awarding a new contract without competing it. If you decide to risk a protest and change the contract type, the contracting officer will need to document the contract file as to why the change is necessary and is in the best interest of the Government. It will also be necessary to obtain some type of consideration from the contractor for the added benefits, and document this determination as well. You must consult with your organization's legal counsel before proceeding.

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