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Part 543—Contract Modifications

Subpart 543.1—General

Authority: 40 U.S.C. 121(c).

543.170 Changes in designated subcontractors, inspection and/or production points.

(a) Before executing a contract modification authorizing changes in either a designated subcontractor or inspection or production point, the contracting officer must consider the impact of the change on the contractor’s ability to satisfy contract requirements. Employ the same standards that were used to determine that the contractor was responsible (see FAR 9.1 and 509.1).

(b) The modification must identify the nature of the change and the effective date. In establishing an effective date, consider the time necessary for affected offices to take required actions.

Subpart 543.2—Change Orders

543.202 Authority to issue change orders.

This section applies to construction contracts.

(a) COR authority. The contracting officer may authorize a warranted COR to issue change orders. Authorization must be in writing, on a contract-by-contract basis, and must identify any limitations. For example, identify dollar limitations or specify that authority is only valid in emergency situations.

(b) Additional restrictions. The Contracting Officer should provide the following instruction to the COR as part of the written authorization:

(c) Review change orders. For unpriced change orders when the COR personally performs all actions, the contracting officer must either personally review each change order or designate a capable official to perform the review. Consider designating the COR’s immediate supervisor or a higher-level official within the organization. Avoid designating more than one official to review change orders issued under an individual contract.

(d) Coordination of change orders. Issue change orders only after coordination, as appropriate, with quality control, finance, audit or other technical personnel.

543.205 Contract clauses.

The contracting officer shall insert 552.243-71, Equitable Adjustments, in solicitations and contracts containing FAR 52.243-4, Changes, FAR 52.243-5, Changes and Changed Conditions, or FAR 52.236-2, Differing Site Conditions.

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