OVERSIGHT & COMPLIANCE BRANCH (OCB)

1. OVERSIGHT & COMPLIANCE BRANCH (OCB) MODIFICATION TYPE and AUTHORITY TRAINING November 04, 2010

2. Table of Contents • Overview…………………………………………………………….3 • Objective…………………………………….………………………4 • Definitions………………………………………..………………..5 • Defining Modification Types………..……………..…..6-8 • Standard Form 30……………………………….............9-10 • Commonly Used Modification Authorities……11-14

3. Overview In FY 2010, OCB performed Acquisition Management Reviews (AMR) of NOAA’s Acquisition and Grants Office (AGO). To assist the Acquisition Divisions (AD), OCB has developed training to address findings from the AMRs. This training will cover contract modification types and authorities.

4. OBJECTIVE • Define the different types of modifications and determine which type is appropriate when issuing your modification. • Provide commonly used modification authorities as a guide for acquisition divisions when issuing contract modifications.

5. DEFINITIONS Administrative change: unilateral (see 43.103(b)) contract change, in writing, that does not affect the substantive rights of the parties (e.g., a change in the paying office or the appropriation data). Change order: a written order, signed by the contracting officer, directing the contractor to make a change that the Changes clause authorizes the contracting officer to order without the contractor's consent. Supplemental agreement: a contract modification that is accomplished by the mutual action of the parties.

6. MODIFICATION TYPES According to FAR 43.103, there are two types of modification: • Bilateral- supplemental agreement signed by the contractor and the contracting officer. • Unilateral- signed only by the contracting officers.

7. MODIFICATION TYPES Bilateral modifications are customarily used to accomplish such actions as the following: • Make negotiated equitable adjustments resulting from the issuance of a change order; • Definitize letter contracts • Reflect other agreements of the parties modifying the terms of the contract

8. MODIFICATION TYPES • Unilateral modifications are customarily used to • accomplish such actions as the following: • Make administrative changes; • Issue change orders; • Make changes authorized by clauses other than a changes clause (e.g., Property clause, Options clause, Suspension of Work clause, etc.) • Issue termination notices.

9. STANDARD FORM 30 When properly executed by the Contracting Officer, constitutes a legal contract modification, thereby placing all responsibility for the final document on the Contracting Officer. The SF 30 is a stand alone document which must accurately reflect the negotiated scope of work, to include any and all changes to the contract terms, conditions, specifications, excess material, time, etc. If the scope changes during negotiations, the SF 30 must include final, revised scope.

10. Block 13 identifies type of modification & authority. The CO must select one of the four fields to identify modification type, and specify a modification authority. • (1) Letter "A." Use this block to issue an undefinitized contract action pursuant to the Changes clause; e.g., notice to proceed . • (2) Letter "B." pertains to administrative changes; e.g., a change in the paying office or the appropriation data. • (3) Letter "C." Use whenever a within scope supplemental agreement (bilateral agreement between the parties) is executed. Insert the title of the contract clause in the space provided; e.g., Changes; Differing Site Condition; Default(Fixed‑Priced Construction). • (4) Letter "D." Use for unilateral modifications citing the appropriate clause or regulation; e.g., Property clause, Options clause, Suspension of Work clause, issuing novation agreements, change‑of‑name agreements, supplemental agreements outside the contract scope, terminations, etc.

11. Commonly Used Modification Authorities This following tables are guides for specialist and contracting officers to help determine the appropriate authority for issuance of specific types of modifications. The specific facts surrounding the individual modification should always be analyzed. The general rule is to cite the explicit authority, which is that authority expressly written into the contract, before citing a more general authority such as “By Mutual Agreement between both Parties”.

15. QUESTIONS