43.104 Notification of contract changes
Source: FAR 43.104 on acquisition.gov
Contractors must promptly notify the Government in writing of any perceived contract changes not formally authorized to ensure proper evaluation and documentation.
Overview
FAR 43.104 establishes the requirement for contractors to promptly notify the Government in writing if they believe a contract change has occurred or may occur that has not been formally documented and signed by the contracting officer. This notification process allows the Government to assess the situation, confirm or deny the change, and provide direction on how to proceed. The section also references the clause at FAR 52.243-7, which formalizes these notification requirements and outlines the responsibilities of both the contractor and the Government regarding such changes.
Key Rules
- Contractor Notification Requirement
- Contractors must notify the Government in writing as soon as possible if they believe an unauthorized contract change has occurred or may occur.
- Government Response Options
- Upon notification, the Government can confirm the change, countermand it, or state that no change has occurred.
- Clause 52.243-7
- This clause, when included in contracts, incorporates these notification requirements and clarifies the roles and responsibilities of both parties.
Responsibilities
- Contracting Officers: Must evaluate contractor notifications, determine if a change has occurred, and provide direction or clarification.
- Contractors: Must promptly notify the Government in writing of any perceived changes not formally authorized.
- Agencies: Should ensure proper inclusion of the notification clause and oversee compliance.
Practical Implications
- This section exists to prevent unauthorized or informal contract changes and to ensure all changes are properly documented and funded.
- It impacts daily contracting by requiring vigilance and prompt communication regarding any potential changes.
- Common pitfalls include failing to notify in writing or assuming verbal directions are authorized changes.
(a) When a contractor considers that the Government has effected or may effect a change in the contract that has not been identified as such in writing and signed by the contracting officer, it is necessary that the contractor notify the Government in writing as soon as possible. This will permit the Government to evaluate the alleged change and-
(1) Confirm that it is a change, direct the mode of further performance, and plan for its funding;
(2) Countermand the alleged change; or
(3) Notify the contractor that no change is considered to have occurred.
(b) The clause at 52.243-7, Notification of Changes, which is prescribed in 43.107-
(1) Incorporates the policy expressed in paragraph (a) of this section;
(2) Requires the contractor to notify the Government promptly of any Government conduct that the contractor considers a change to the contract, and
(3) Specifies the responsibilities of the contractor and the Government with respect to such notifications.