Contract Administration and Performance Management
Who does what
The contracting officer retains authority after award; the COR or administrative contracting officer performs day-to-day surveillance, quality monitoring, and invoice review but cannot direct changes or authorize work outside the contract.
Modifications (FAR 43)
Bilateral supplemental agreements handle changes both parties sign. Unilateral modifications are permitted only for actions the clauses authorize: Changes, Options, stop-work orders, and terminations. A modification adding work outside the original scope is not a modification at all; it is a new procurement and may be an impermissible cardinal change.
Changes and equitable adjustment
The Changes clause lets the government order changes within the general scope, with the contractor receiving an equitable adjustment in price and schedule. Constructive changes arise from defective specifications, over-inspection, or direction by unauthorized personnel, and they carry the same entitlement.
Inspection, acceptance, and payment
Inspection precedes acceptance (FAR 46). Acceptance binds the government except for latent defects and fraud. Under the Prompt Payment Act, pay a proper invoice within 30 days or interest accrues automatically; any withholding must be justified and documented.
Termination and delay
- Convenience: contractor recovers costs incurred, a reasonable profit on work done, and settlement expenses, but not anticipated profit on unperformed work.
- Default: requires notice and an opportunity to cure where the clause provides it; the contractor may owe excess reprocurement costs. Convert to convenience when the failure was excusable.
- Stop-work orders run for the period stated in the clause (typically limited to 30 days absent extension); excusable delay is non-compensable, compensable delay is not.
Traps
Using a unilateral modification for any change at all; treating liquidated damages as punitive (they must be a reasonable forecast of anticipated loss); forgetting CPARS past performance reporting and timely closeout.