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  • Question

    If there is no change effective until both paries sign, wouldn't that be an ADA violation? If the contractor disagrees or want to negotiate a different change, then there would be no funding for the total contract amount, at least temporarily.


    Answer

    There would be no Anti-Deficiency Act (ADA) violation because the Changes paragraph of the clause at FAR 52.212-4 does not apply to decreased quantities of items under the contract. Decreased quantities fall under the Termination for the Government's Convenience paragraph, which gives the Government the unilateral right to terminate any part of the contract (including "part of a quantity"). As a result, there is no ADA violation when funds are deobligated because the Government does not have to rely on contractor concurrence to reduce a quantity.

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