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NMCARS PART 5243 CONTRACT MODIFICATIONS



PART 5243 CONTRACT MODIFICATIONS

SUBPART 5243.1—GENERAL

5243.102 (FAR 43.102) Policy.

5243.102-90 Use of modifications for additional quantities.

DoN policy is to avoid the use of contract modifications for additional quantities as a means of purchasing new requirements of supplies, when such a procedure would result in prolonging the life of the contract beyond the time when final settlement would normally be made.

SUBPART 5243.2—CHANGE ORDERS

5243.201 (FAR 43.201) General.

(S-90) (a) Each undefinitized change order shall include a not-to-exceed price unless the CCO

waives this requirement.

(b) The policies and procedures of DFARS 217.74 shall be applied to change orders (except value engineering change proposals (VECPs)) to the maximum extent practicable.

(c) The use of VECPs are encouraged due to the potential savings and system improvements that may be realized.

(1) Prompt action shall be taken to implement those VECPs deemed to be technically sound.

(2) When considering VECPs, contracting officers shall consider the impact on the projected savings that the normal negotiation and definitization process would have versus use of an unpriced change order. Unpriced contract modifications that implement VECPs shall:

(i) Define minimum unit cost savings, and

(ii) Define maximum development/implementation costs

5243.204 (DFARS 243.204) Administration.

5243.204-70 (DFARS 243.204-70) Definitization of change orders.

5243.204-70-1 (DFARS 243.204-70-1) Scope.

(b) Submit the required contracting officer notice to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “Contracting Officer Notice pursuant to DFARS 243.204-70-1—FMS/SAP Unpriced Change Orders.”

5243.204-70-7 (DFARS 243.204-70-7) Plans and Reports.

(b) Report unpriced change orders in accordance with the schedule and in the format prescribed at 5217.7405 to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “DFARS 243.204-70-7 – Unpriced Change Order Report.

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