Subpart 43.1
General
FAR Subpart 43.1 establishes the essential rules and procedures for modifying federal contracts, ensuring changes are managed transparently, lawfully, and with proper funding.
Overview
FAR Subpart 43.1 – General provides the foundational framework for contract modifications within federal government contracting. It outlines key definitions, establishes policies for modifying contracts, describes the types of contract modifications, and sets forth requirements for notification and the availability of funds. This subpart also mandates the inclusion of specific contract clauses related to changes and modifications. The guidance ensures that both contracting officers and contractors understand the procedures and limitations associated with altering contract terms after award, promoting transparency, accountability, and compliance with federal regulations.
Key Rules
- Definitions (43.101)
- Clarifies terms used throughout Part 43, ensuring consistent interpretation.
- Policy (43.102)
- Establishes the overarching policy for when and how contract modifications may be made.
- Types of Contract Modifications (43.103)
- Distinguishes between unilateral and bilateral modifications and their appropriate use.
- Notification of Contract Changes (43.104)
- Requires timely notification to contractors regarding any contract changes.
- Availability of Funds (43.105)
- Ensures that modifications are not made without proper funding.
- Contract Clause (43.107)
- Mandates the inclusion of the appropriate changes clause in contracts.
Responsibilities
- Contracting Officers: Must follow prescribed procedures for modifying contracts, ensure proper notification, verify funding, and include required clauses.
- Contractors: Must comply with notification requirements and understand the types and implications of contract modifications.
- Agencies: Oversee compliance with modification policies and ensure funds are available before changes are made.
Practical Implications
- This subpart exists to standardize the process for contract modifications, reducing disputes and ensuring legal compliance.
- It impacts daily contracting by requiring clear communication, proper documentation, and adherence to funding rules.
- Common pitfalls include unauthorized modifications, lack of timely notification, and failure to verify funding before making changes.