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Change of Contract Type
John Vencius on
Friday, July 28, 2000 - 06:16 pm:
Thanks to everybody for your
input, especially Vern, who's first response surprised me being
within minutes of my initial posting. You've all given me
essential insight into the task.
By Vern Edwards on Thursday, July 27, 2000 - 03:20 pm:
By Eric Ottinger on Thursday, July 27, 2000 - 12:45 pm:
By J. Inman on Thursday, July 27, 2000 - 12:19 pm:
Similarly, I'm unaware of any
prohibition on changing type, but a protestor might suggest that
reforming a contract in such a manner is tantamount to awarding
a new contract but without benefit of competition -- this is
especially true if marketplace changes make the contractor's
price too low and the contract modification allows the
contractor to raise its price or otherwise reduce its risk of
performance. If this is the basis for the modification, then a
caution is in order. Generally, contractors are bound to honor
their prices, even if prices in the industry go up and the
contractor has to perform at a loss. After all, a deal is a
deal. A T4D might be appropriate (if the contractor refuses to
honor its contract).
By C MERCY on Thursday, July 27, 2000 - 12:14 pm:
By Vern Edwards on Wednesday, July 26, 2000 - 06:44 pm:
When I was a CO I negotiated changes in contract type a couple of times. I don't know any reason why you can't. It's no different than changing anything else and I don't think it increases the scope of the contract. Changing from FFP to FP with EPA doesn't strike me as too great a change.
By John Vencius on Wednesday, July 26, 2000 - 06:20 pm:
I can't find an authority for --
or a prohibition against -- changing a contract type.
Specifically, from a firm-fixed-price to a fixed-price with
economic price adjustment. The closest I've found is in FAR
16.103(c), "In the course of...., changing circumstances may
make a different contract type appropriate in later periods than
that used at the outset." If the market for certain professional
services has changed significantly, making it virtually
impossible to obtain critical services at previously contracted
fixed-rates, such a remedy would be preferable to re-soliciting
a new procurement. Any input?
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