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Request for Equitable Adjustment


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I am currently dealing with a REA regarding property. Contractor had notified the government of excess GFM that had no movement for over 12 months. The PA had notified the customer of the GFM and asked if they wanted it back. There was no response for over a year and the contractor stored all GFM for the entire period of time. Now they want to submit an invoice for the storage fee and the contract is about to be closed out. Would an REA be the best way to deal with this and if so, would we have to create a CLIN to adjust? Another small issue is that this contract is not funded with US monies.

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Guest Vern Edwards

Setting aside the funding issue, and assuming that the government does not contest the request for payment and that the contractor no longer has the property, the easiest thing to do would be to write a supplemental agreement adding a CLIN for storage of government property from date x to date y and stipulating a one-time lump sum payment of whatever amount you agree to.

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