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|Revisions in Regulation During Contract Performance|
on Friday, June 07, 2002 - 06:22 pm:
I'd like to get information on any existing FAR clause or guidance governing a contractor's obligation to adhere to government regulations listed in a contract that are revised during performance of the contract. For example, if the contract states that the contractor is required to follow the guidelines of AFR 10-1 dated 1 Apr 95, and the regulation is revised midway through the contract and now is AFR 10-1 dated 1 May 98, is there any government requirement or clause that applies to the contractor following the revised regulation?
I am not aware of any such clause or guidance.
Agreeing with Vern, I do not believe there is any standard FAR clause or guidance on this issue. However, I have seen contracts that have special provisions requiring the contractor to adhere to the most current regulation at all times. Unfortunately, these contracts have not gone the next step and provided for an equitable adjustment if compliance with the most current regulation has an impact on cost/schedule.
The Department of Energy (DOE)
under its Managmenet and Operating (M&O) contract provisions in
its FAR supplement (DEAR) has a specific clause that allows the
contracting officer to unilaterally modify the contract to
change or add new DOE Directives. See (b) below and how it is
To add to what Bob has said, if a
regulation such as AFR 10-1 is incorporated into a contract in
the statement of work or specification, then the contracting
officer can update it by issuing a change order pursuant to the
Changes clause. This route will entitle the contractor to an
equitable adjustment if the update increases the cost or time of
I once worked on a Base Operating Services Contract and frequently changes occurred as a result of changes in the law affecting the way the base plants (nculear power plant, environmental changes, water and sewage standards)were operated. When we incorporated the updated EPA standards or other standards, our engineers and COTRs evaluated the impact of the new guidelines. Some required an adjustment and some changes did not require an adjustment. We analyzed each change. Sometimes we ended up in dispute with the contractor as to impact and the contractor would file a claim.
I don't know what your contract says, or what type contract it is (services? cost reimbursement? firm-fixed price?, etc.?). It would appear, from the wording you provided, that you need to issue a change to revise the applicable procedures, if the Contractor will have to change its procedures. happy sails! joel hoffman
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