Part 43
Contract Modifications
FAR Part 43 provides the framework and procedures for making, documenting, and administering contract modifications to ensure compliance and accountability in government contracting.
Overview
FAR Part 43 establishes the policies and procedures for modifying government contracts after award. It covers the types of contract modifications, the authority and process for issuing change orders, notification requirements, funding considerations, and the use of specific forms. The part is organized into three main subparts: General (definitions, policy, types of modifications, notification, and clauses), Change Orders (procedures, authority, accounting, and administration), and Forms (requirements for documentation). This structure ensures that both contracting officers and contractors understand how to properly execute, document, and manage contract modifications in compliance with federal regulations.
Key Rules
- General Policies and Definitions
- Provides definitions, outlines the policy for contract modifications, and describes the types of modifications allowed.
- Change Orders
- Details the authority to issue change orders, accounting procedures, and administrative requirements for managing changes to contracts.
- Notification and Funding
- Requires notification of contract changes and addresses the availability of funds before modifications are made.
- Forms and Documentation
- Specifies the forms to be used for contract modifications to ensure proper documentation and auditability.
Responsibilities
- Contracting Officers: Must follow proper procedures for issuing, documenting, and administering contract modifications, including ensuring funds are available and notifying contractors of changes.
- Contractors: Must comply with modification instructions, maintain records, and respond to notifications of changes.
- Agencies: Oversee compliance, ensure proper use of forms, and maintain records for audit and review.
Practical Implications
- FAR Part 43 exists to provide a standardized, auditable process for modifying contracts, reducing disputes and ensuring transparency.
- It impacts daily contracting by requiring strict adherence to procedures for any contract change, whether administrative or substantive.
- Common pitfalls include unauthorized changes, lack of proper documentation, and failure to notify or secure funding before modifications.