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DFARS 243



Part 243—Contract Modifications

TABLE OF CONTENTS

(Revised February 28, 2014)

SUBPART 243.1--GENERAL

243.107-70 Notification of substantial impact on employment.

243.170 Identification of foreign military sale (FMS) requirements.

243.171 Obligation or deobligation of funds.

243.172 Application of modifications.

SUBPART 243.2--CHANGE ORDERS

243.204 Administration.

243.204-70 Definitization of change orders.

243.204-70-1 Scope.

243.204-70-2 Price ceiling.

243.204-70-3 Definitization schedule.

243.204-70-4 Limitations on obligations.

243.204-70-5 Exceptions.

243.204-70-6 Allowable profit.

243.204-70-7 Plans and reports.

243.204-71 Certifications of requests for equitable adjustment.

243.205 Contract clauses.

243.205-70 Pricing of contract modifications.

243.205-71 Requests for equitable adjustment.

243.205-72 Unpriced change orders.

SUBPART 243.1--GENERAL

(Revised February 26, 2016)

243.107-70 Notification of substantial impact on employment.

The Secretary of Defense is required to notify the Secretary of Labor if a modification of a major defense contract or subcontract will have a substantial impact on employment. The clause prescribed at 249.7003(c) requires that the contractor notify its employees, its subcontractors, and State and local officials when a contract modification will have a substantial impact on employment.

243.170 Identification of foreign military sale (FMS) requirements.

Follow the procedures at PGI 243.170 for identifying contract modifications that add FMS requirements.

243.171 Obligation or deobligation of funds.

Follow the procedures at PGI 243.171 when obligating or deobligating funds.

243.172 Application of modifications.

Follow the procedures at 204.1671 for determining the sequence for application of modifications to a contract or order.

SUBPART 243.2--CHANGE ORDERS

(Revised June 25, 2013)

243.204 Administration.

Follow the procedures at PGI 243.204 for administration of change orders.

243.204-70 Definitization of change orders.

243.204-70-1 Scope.

243.204-70-2 Price Ceiling.

Unpriced change orders shall include a not-to-exceed price.

243.204-70-3 Definitization schedule.

243.204-70-4 Limitations on obligations.

243.204-70-5 Exceptions.

(a) The limitations in 243.204-70-2, 243.204-70-3, and 243.204-70-4 do not apply to unpriced change orders for the purchase of initial spares.

(b) The limitations in 243.204-70-4(a) do not apply to unpriced change orders for ship construction and ship repair.

(c) The head of the agency may waive the limitations in 243.204-70-2, 243.204-70-3, and 243.204-70-4 for unpriced change orders if the head of the agency determines that the waiver is necessary to support—

243.204-70-6 Allowable profit.

243.204–70–7 Plans and reports.

To provide for enhanced management and oversight of unpriced change orders, departments and agencies shall—

243.204-71 Certification of requests for equitable adjustment.

243.204-71(b) for an example.

243.205 Contract clauses.

243.205-70 Pricing of contract modifications.

Use the clause at 252.243-7001, Pricing of Contract Modifications, in solicitations and contracts when anticipating and using a fixed price type contract.

243.205-71 Requests for equitable adjustment.

Use the clause at 252.243-7002, Requests for Equitable Adjustment, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that are estimated to exceed the simplified acquisition threshold.

243.205-72 Unpriced change orders.

See the clause prescriptions at 217.7406 for all unpriced change orders with an estimated value exceeding $5 million.

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