Contract Execution, Modification, and Termination
Execution, changes, termination
The changes clause lets the CO order changes within the general scope of the contract, unilaterally if necessary. The contractor must continue performance and submit a request for equitable adjustment within the stated period; a constructive change can arise from defective specifications, overzealous inspection, or direction outside the contract. A cardinal change--one that fundamentally alters the contract--is outside the clause and requires a new procurement. Bilateral supplemental agreements are used when both parties agree; unilateral change orders are used under a changes clause. The Disputes clause governs claims and appeals.
Termination for convenience (T4C) is a government right; the contractor recovers work done, preparation, and a reasonable profit on work performed, but not anticipatory profit. Termination for default (T4D) is for contractor failure and can expose the contractor to excess reprocurement costs, unless the failure is excusable. Distinguish T4C from T4D and know the notice and settlement procedures.
Worked example: the CO directs the contractor to add a new site not contemplated by the SOW. If the addition is within the contract's general scope, the CO may issue a unilateral change order and the contractor submits an REA. If it is a cardinal change, the CO must create a new acquisition. Rule of thumb: scope, not dollar value, determines whether the changes clause applies.